ENPOR Split Incentives Quantification Tool (Q-Split)

"Split incentives" refer to any situation where the benefits of a transaction do not accrue to the actor who pays for the transaction. In the context of energy efficiency in buildings, split incentives are linked with cost recovery issues related to energy efficiency upgrade investments due to the failure of distributing effectively financial obligations and rewards of these investments between concerned actors. Especially, when it comes to the Private Rented Sector (PRS), existing literature identifies "split incentives" among landlords and tenants, as one of the main barriers when implementing energy efficiency policies to tackle energy poverty. Moreover, in most European Union countries, there is significant lack of studies or estimations on the extent of the "split incentives" issue, which leads to the design of renovation policies with a subsidy rate that is not often adequate or optimised as it cannot capture the impact of "split incentives". 

The ENPOR Split Incentives Quantification Tool (Q-Split) (excel file), that was produced within the context of the Horizon 2020 ENPOR project, allocates the costs and benefits of energy efficiency interventions for landlords and tenants and contributes to a deeper understanding about how to enhance energy efficiency and tackle energy poverty in the PRS. To do so, the tool identifies the share of the triggered benefits from the implementation of energy efficiency interventions between landlords and tenants facilitating the fair allocation of costs or subsidy rates for both sides, towards specific energy efficiency scenarios in several geographical/national contexts.

To facilitate users, a User Guide document (PDF file) has been developed including information about the tool, i.e., the tool's objective and methodology, as well as simple instructions on how to use it.