Opinion: Energy slums or efficient housing?
Boulder is considering an ordinance that would require landlords to bring their rental units up to a reasonable standard of energy efficiency. The draft ordinance went to the Planning Board on Thursday, and will likely be considered by the City Council in May. But will the complaints by some landlords derail this important step in our efforts to address climate change while making rental housing more affordable? The need to use regulation to improve energy efficiency was recognized many years ago. The reason is simple: When the tenants pay the utilities, landlords do not have a direct incentive to improve energy efficiency. And tenants have little incentive to make improvements since they will not be there long enough for the energy savings to pay them back. This “split incentives” paradox is the main obstacle to upgrading rental housing, and is why regulation is the only effective approach. From my perspective, the complaints about the proposed regulations are overblown. Any bui...