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Additional resources for Mind the gap : quantifying principal-agent problems in energy efficiency ; in support of the G8 plan of action
Secondly, most end users of energy rent their office space and are not responsible for making decisions on energy saving measures. This situation occurs in Case 2 and Case 4. Case 4 is not relevant for the Dutch situation, as it seldom occurs. Therefore, the main focus of this study will be on the split-incentive problem of Case 2, which covers about 40% of all office space in the Netherlands. In Norway on the other hand, owner-occupied buildings are only a fraction of the total office space. The potential problems described above are thus highly relevant in a Norwegian context.
It is argued that the Theory is too narrow because its assumptions discount contingencies that may be more reflective of realities in economic relationships. A second criticism of Agency Theory is that the Theory is as yet incomplete. Sharma (1997) notes that the persistence of agency problems in many sectors of the economy raises questions about the completeness or even appropriateness of the mainstream agency perspective. However, the incompleteness of the Theory may not be a problem per se. “Unresolved issues in the Theory provide the impetus to explore factors that impede application of agency solutions and, for that matter, to scrutinise Theory itself so that its structure may be refined further” (Sharma, 1997, p.
In practice, each case study deviates slightly from this approach because of differences in the circumstances behind the market failure, features of the affected population, and the availability of energy data. These deviations will be explained as they arise. This chapter uses highlights from the television set-top boxes case study to illustrate the steps. A set-top box is an electronic device that receives a video signal and converts it for display on a television. Hundreds of millions of homes in Europe, North America, Australia, and Japan (and elsewhere) contain set-top boxes, although the technologies are slightly different in each country.