BUILDING ENERGY EFFICIENCY
http://www.cows.org/pdf/rp-energyefficiency.pdf
- 300 billion sq ft of building space in US
- Given huge potential, asks why market for retrofits doesn't work
- Barriers to realizing savings from retrofits: poor info, lack of access to capital, split incentives (you pay energy bill but don't own property), limited tenancy, fear of disruption from retrofitting, risk aversion/skepticism, competing alternative uses of capital
- How to fix: radically lowered risk and transaction costs for owners/tenants AND reliable capture of savings for external investors
- Presents an organizational model to achieve these goals with 6 entities: coordinator (calls it E2 - gov't, public-private, NGO, etc.), utility that puts E2 efficiency services on bill, energy customer willing to pay for retrofit work on bill if repayment lower than energy savings, bank willing to loan money to E2 if can aggregate large number of customers, energy auditor, contractor
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