Table 1.

An overview of policy responses to the split incentive problem.

	Description	Benefits	Concerns
Contracts
Green or energy efficiency lease	Landlord and tenant agreement to conserve energy, where landlord retrofit investments are trickled down to tenant.	Higher rents offset by lower utility costs. Mutual commitment to conservation.	Requires cooperation from landlord and tenant. Continual capital improvements and maintenance necessary. Currently geared toward commercial leases.
Energy efficiency mortgages (PACE financing)	Externally funded loan attached to the property.	Capital improvements can be done at one time and paid in installments.	Benefits remain with the property and lien complicates property resale. Liability for property owner.
On-bill financing	Capital improvements are tied directly to utility company payments.	Capital improvements can be done at one time and paid in installments with no lien issues.	Usually focused on live-in homeowners, not tenants.
Regulation
Green building codes	Application of higher energy standards for new construction.	Potential to benefit all new housing developments, including buildings for low-income tenants.	Only applies to new construction. Higher rent prospects along with higher construction and maintenance cost can create bias against low-income tenants.
Low-income rental mandates	Mandate of higher energy standards for low income housing.	Potential for high scale implementation in low-income rental housing.	Creates serious disincentive to provide low-income housing.
All-in Services
Weatherization assistance program	National weatherization program, usually implemented as grants. Differs from state to state.	Has highest reach; especially under the U.S. Stimulus Program. Variety of policy programs and state differentiation/experimentation.	Cannot be implemented at scale because of cost; inefficient. No follow-up for maintenance. Hardly used for low-income rental housing.
Concierge Services	Small niche programs designed to provide comprehensive efficiency assistance with education.	Highest success rate for efficiency gains and behavioral improvements; addresses poverty concerns effectively.	Cannot be implemented at scale because of cost. Highest expense.