As the federal government takes a step back from climate action, cities and states are stepping up to address emissions and the climate crisis. However, a new study reveals that these efforts often overlook renters, who make up a significant portion of the housing market and are among the most vulnerable when it comes to climate policy.
According to a recent analysis by Redfin, about one-third of U.S. households rent, totaling around 46 million renters, who are typically lower income. Despite this, many programs aimed at improving energy efficiency or transitioning to cleaner energy sources target landlords instead of tenants, even though it is the tenants who bear the brunt of utility costs.
The issue lies in what economists call a “split incentive” – landlords have little motivation to invest in energy-efficient upgrades because they do not pay the utility bills. This dilemma is a common topic of discussion among city planners and officials, as highlighted by Dovev Levine from the New England Municipal Sustainability Network.
A recent study conducted by researchers at Binghamton University delved into how state and local governments are addressing this issue. They found that only about half of the officials they interviewed offered initiatives focused on improving energy efficiency in rental units. This gap in policy results in a significant portion of the residential market being overlooked.
While renters have not always been a priority for city planners, there has been a shift in recent years. Organizations like the American Council for an Energy-Efficient Economy have seen more municipalities implementing strategies to engage landlords in making energy-efficient upgrades. These strategies include providing incentives for choosing efficient options during replacements or repairs and highlighting the benefits of efficiency in common areas.
Funding also plays a crucial role in bridging the gap. Some jurisdictions offer financial assistance for energy efficiency improvements, such as Alachua County in Florida and Minneapolis. However, navigating these resources can be challenging, prompting cities like Boston to launch programs like the “Energy Saver” initiative to provide individual consultations.
In cases where incentives are not enough, some jurisdictions have turned to regulations to address the issue. Burlington, Vermont, for example, passed an ordinance requiring rentals to become more efficient gradually. While regulatory approaches may not be feasible in all areas due to state laws, there is hope that municipalities will increasingly consider renters in their climate policies.
Overall, there is optimism among experts like Stefen Samarripas that innovative solutions will continue to emerge as government officials work creatively to address the split incentive dilemma and ensure that renters are not left behind in the transition to a more sustainable future.
