[07.09.23] ENPOR presents: Methodologies and tools to quantify split incentives

💡How can the costs of energy efficiency measures be fairly distributed between landlords and tenants? ENPOR  hosted a webinar showcasing expert tools that help to address and understand the issue. Some great insights from ENPOR, MICAT, REFEREE!

The aim of this online event was to present methodologies and tools that quantify “split incentives”.

“Split incentives” refer to any situation where the benefits of a transaction do not accrue to the actor who pays for the transaction. In the context of energy efficiency in buildings, split incentives are linked with cost recovery issues related to energy efficiency upgrade investments due to the failure of distributing effectively financial obligations and rewards of these investments between concerned actors [1]. Especially, when it comes to the PRS, existing literature identifies “split incentives” among landlords and tenants, as one of the main barriers when implementing energy efficiency policies to tackle energy poverty [2]. Moreover, in most European Union (EU) countries, there is significant lack of studies or estimations on the extent of the “split incentives” issue, which leads to the design of renovation policies with a subsidy rate that is not often adequate or optimised as it cannot capture the impact of “split incentives”. In this context, contributions that aim to address this gap are planned. The presentations will focus on methodologies and tools that seek to better understand the issue and enhance the uptake of energy efficiency investments in the PRS.

• The ENPOR Split Incentive Quantification Tool – allocates the costs and benefits of energy efficiency interventions for landlords and tenants. The tool contributes to a deeper understanding about how to tackle energy efficiency in the private rented sector. A tool that mainly aims to identify the share of the triggered benefits from the implementation of energy efficiency interventions between landlords and tenants in order to quantify the appropriate allocation of costs or subsidy rates for both sides, towards specific energy efficiency scenarios in several geographical/national contexts.
• The MICATOOL analyses the multiple impacts of energy-saving interventions. A handy tool that lets users see (among other things) the impacts that different energy efficiency policies have on energy poverty. The MICAT H2020 project team, with Frederic Berger from Fraunhofer ISI, gave an introduction to the Multiple Impacts tool, enabling holistic analyses of MI-EE at the European, national and local levels to strengthen the climate strategy of the Energy Union and accelerate an affordable and just sustainable energy transition by addressing the challenges and needs of important target groups: policy makers, practitioners and evaluators. The MICATool seeks to enable policy-makers and practitioners to conduct simplified analyses for different data and policy scenarios, to compare and assess the relevance of the multiple impacts, and strengthen reporting and monitoring at the three governance levels. This can be used to report on target progress at the EU level, for NECPs or other reporting requirements at national levels, as well as in local reporting on energy efficiency within SECAPs.
• Last but not least REFEREE’s Policy Assessment Tool helps to understand the socioeconomic impacts of energy policies at the national and local levels. Stefano Faberi, Isinnova provided a short introduction to the RFEREE project: objectives, duration, partners. Conceptual design and input/output data flow of the Policy assessment Tool. Type of energy efficiency measures that the toll can process at national and local level. The main outputs at national and local level. Presentation here.

Catch up below with the event recording: