Race to Reduce replaces landlord-tenant tug-of-war
A recent survey by the US-based Institute for Building Energy found that split incentives between landlords and tenants were one of the top barriers to achieving greater levels of energy efficiency. Referred to more generally as the principal-agent problem, it arises because building owners pay the capital costs associated with improving the energy efficiency of their buildings, while tenants are the beneficiaries of reduced utility bills.
It's often difficult to forge common ground because there are limited opportunities for owners and tenants to work together. Then there is the added problem that energy use (and wastage) is hard to see and, thus, all too easy to overlook.
A recent Toronto-area initiative, called the Race to Reduce, takes aim at the dilemma. The Toronto-based non-profit oorganization Greater Toronto CivicAction Alliance (CivicAction) is the driver of this unique collaboration, after concluding a few years ago that one of the city's most pressing needs is to reduce energy and greenhouse gas emissions. Office buildings were identified as a sector where great progress could be made since it's estimated that 20% of Toronto’s greenhouse gas emissions come from office buildings.
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Canadian Property Management