Utilities Included: Split Incentives in Commercial Electricity Contracts
| Autor: | Katrina Jessoe, Maya Papineau, David Rapson |
|---|---|
| Rok vydání: | 2019 |
| Předmět: |
Economics and Econometrics
Electricity price business.industry 020209 energy 05 social sciences Principal–agent problem 02 engineering and technology Monetary economics General Energy Lease Incentive 0502 economics and business 0202 electrical engineering electronic engineering information engineering Business Electricity 050207 economics Electricity retailing |
| Zdroj: | SSRN Electronic Journal. |
| ISSN: | 1556-5068 |
| Popis: | This paper quantifies a tenant-side ýsplit incentivesý problem that exists when the largest commercial sector customers are on electricity-included property lease contracts, causing them to face a marginal electricity price of zero. We use exogenous variation in weather shocks to show that the largest firms on tenant-paid contracts use up to 14 percent less electricity in response to summer temperature fluctuations. The result is retrieved under weaker identifying assumptions than previous split incentives papers, and is robust when exposed to several opportunities to fail. The electricity reduction in response to temperature increases is likely to be a lower bound when generalized nationwide and suggests that policymakers should consider a sub-metering policy to expose the largest commercial tenants to the prevailing retail electricity price. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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