Good practices in quantifying split incentives in the private rented sector 


Building renovation
Consumers and behavioural change
Energy poverty
Heating and cooling


In most EU countries, we do not have any studies or estimations on the extent of the split incentive problem, which leads to design of policies for renovation with a subsidy rate that is not often adequate or optimised as it cannot capture the impact of the split incentive.

ENPOR organised in May 2023 a seminar to show various methods of how we can we quantify the split incentive problem in a country, through surveys and methodologies that are unbiased and can generate useful findings for further policy design. The better understanding of the split incentive problem can assist policymakers in quantifying the financing requirements for promoting energy efficiency investments in the built environment among the landlords and tenants. Through such knowledge, policymakers can design their policies for energy efficiency upgrades and target more efficiently the private rented sector.

The purpose of this brief is to assist policymakers, energy agencies and practitioners to identify ways for quantifying the split-incentive in their countries, based on the national tenancy market circumstances, data availability and own capacity to perform this task.

The author prepared this briefing using the four presentations that the other authors did during the seminar. We would therefore like to thank them again for their precious insights!

Catch up with the event with the recording below and presentations.

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