This article from the WSJ discusses the importance of social pressure in motivating behavior that reduces energy consumption. It points out that the bounded rationality of consumers makes the cost-benefit analysis difficult; they often fail to calculate accurately the future cost savings. It states that social pressure matters and can be an effective way to create intrinsic rewards for "good" behavior. Financial incentives also matter: the article has a good example of how customers responded to a message telling them that they would get lower rates if they shifted consumption to off-peak hours and "Plenty of shifting happened."
The article asks, "Why would a landlord spend money on energy improvements if the benefit flows only to the renter paying the utility bill?" Could the landlord capture the saving accruing to the renter when the renter's utility bills decrease? If so, how?
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