Mind the Gap

Quantifying Principal-Agent Problems in Energy Efficiency

About this report

Mind the Gap is an unprecedented attempt to quantify the size of one of the most pervasive barriers to energy efficiency – principal-agent problems, or in common parlance, variations on the ‘landlord-tenant’ problem. In doing so, the book provides energy analysts and economists with unique insights into the amount of energy affected by principal-agent problems. Using an innovative methodology applied to eight case studies (covering commercial and residential sectors, and end-use appliances) from five different IEA countries, the analysis identifies over 3 800 PJ/year of affected energy use – that is, around 85% of the annual energy use of a country the size of Spain. The book builds on these findings to suggest a range of possible policy solutions that can reduce the impact of principal-agent problems and help policy makers mind the energy efficiency gap.