Impacts of the Split Incentive on Rental Housing

Ecolibrium3 partnered with the University of Minnesota Duluth’s Bureau of Business and Economic Research (BBER) to conduct a study on the prevalence of the “split incentives” issue surrounding student housing. This new study by BBER, “Impacts of the Split Incentive on Privately Owned Rental Housing,” reveals that Duluth landlords and students who lease private rental property in Duluth may often be at odds when it comes to energy savings. The study shows that a “split incentive” exists.

UMD’s Office of Sustainability is considering developing a program to connect student renters with energy efficient housing with the overall goal of reducing energy consumption in rental properties. The BBER surveys of landlords and tenants included a number of questions designed to identify potential characteristics that could help make the program successful. The results of the study come at a time when the City of Duluth is pursuing housing as a major component of its comprehensive plan and developing a community energy plan as part of its participation in the Georgetown University Energy Prize competition. The BBER will be sharing the results of the study with landlords, local utilities, energy organizations, and the City to help inform these groups as they work to improve Duluth’s housing and save residents money. The study was commissioned by the Carlson School of Management and Wells Fargo Bank. Project partners included Ecolibrium3, UMD’s Office of Sustainability, and UMD’s Geospatial Analysis Center.

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Now that you’ve learned more, the best way to create change is by getting involved! Donate your money or time, find support, and take action. Citizen climate action means a stronger, healthier, more vibrant Duluth!

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