SPLIT INCENTIVES AND RESIDENTIAL FUEL CHOICE

摘要

This study uses probit regression analysis to analyze thernrole of split incentives in water heating fuel choice in newrnresidential developments using information from arnresidential DSM pilot in British Columbia. Split incentivernrefers to a situation where the economic agent who isrnconsidering making an investment does not directly reaprnthe benefits of the investment. A key example of splitrnincentives in the residential sector is where the owner of arnrental property makes an investment, but the gain isrnrealized by a tenant who pays the energy bill. The keyrnfindings of the study are: (1) ownership of a dwelling unitrnrather than rental of a dwelling unit increases thernprobability of natural gas water heating by 12%; (2) thernimplicit discount rate on water heater investments isrn30.3%; and (3) the program had a positive net presentrnvalue for the Utility Test, the Participant Test, and thernTotal Resource Cost Test, but not for the Rate ImpactrnTest.