Optimizing Incentive Policy of Energy-Efficiency Retrofit in Public Buildings: A Principal-Agent Model
Abstract
:1. Introduction
2. Methodology
2.1. Principa–Agent Theory
2.2. Model Description
2.2.1. Players in the Principal–Agent Model
2.2.2. Benefits and Costs
2.2.3. Scenarios
2.2.4. Variables
3. Results
3.1. Preparatory Work
3.2. Results of Optimal Incentives in the Four Scenarios
4. Discussion
4.1. Scenario I Versus Scenario II
4.2. Scenario III versus Scenario IV
4.3. Government Incentive
4.4. Efforts of Owners and Tenants
4.5. Risk
5. Conclusions
Author Contributions
Funding
Appendix A
Appendix A1. Scenario I: Owner-Occupied and Owner-Benefited
Appendix A2. Scenario II: Owner-Occupied and Owner-Unbenefited
Appendix A3. Scenario III: Tenant-Occupied and Owner-Benefited
Appendix A4. Scenario IV: Tenant-Occupied and Owner-Unbenefited
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Stakeholders | Benefits | Costs |
---|---|---|
Owners | Economic benefits from retrofit | Cost of EER |
Incentives from government | Incentives to tenants (optional) | |
Tenants | Economic benefits from retrofit | Cost of EER |
Incentives from owners (optional) | ||
Government | Economic and social benefit | Incentives to owners |
Category | Variable | Definition |
---|---|---|
Owner | owners’ effort to EER | |
cost of owners’ effort to EER | ||
owners’ income from EER | ||
incentive of owner to tenant | ||
utility function of owners | ||
Tenant | tenants’ effort to EER | |
cost of tenants’ effort to EER | ||
tenants’ income from EER | ||
utility function of tenant | ||
Government | incentive of government to owners | |
utility function of government | ||
Environment | exogenous uncertainty probability distribution, mean is 0, variance is | |
coefficient of economic benefit from EER, | ||
coefficient of environmental benefit from EER, | ||
benefit of EER, + | ||
economic benefit of EER | ||
environmental benefit of EER | ||
Intermediate variable | Coefficient of the incentive to owners | |
Coefficient of the incentive to tenants | ||
Coefficient of owner’s cost | ||
Coefficient of tenant’s cost |
Scenario I | Scenario II | Scenario III | Scenario IV | |
---|---|---|---|---|
NA | NA |
I | II | III | IV | |
---|---|---|---|---|
NA | NA | |||
NA | NA |
I | II | III | IV | |
---|---|---|---|---|
1 | 1 | |||
NA | NA | |||
NA | NA |
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Liang, X.; Shen, G.Q.; Guo, L. Optimizing Incentive Policy of Energy-Efficiency Retrofit in Public Buildings: A Principal-Agent Model. Sustainability 2019, 11, 3442. https://doi.org/10.3390/su11123442
Liang X, Shen GQ, Guo L. Optimizing Incentive Policy of Energy-Efficiency Retrofit in Public Buildings: A Principal-Agent Model. Sustainability. 2019; 11(12):3442. https://doi.org/10.3390/su11123442
Chicago/Turabian StyleLiang, Xin, Geoffrey Qiping Shen, and Li Guo. 2019. "Optimizing Incentive Policy of Energy-Efficiency Retrofit in Public Buildings: A Principal-Agent Model" Sustainability 11, no. 12: 3442. https://doi.org/10.3390/su11123442
APA StyleLiang, X., Shen, G. Q., & Guo, L. (2019). Optimizing Incentive Policy of Energy-Efficiency Retrofit in Public Buildings: A Principal-Agent Model. Sustainability, 11(12), 3442. https://doi.org/10.3390/su11123442