Most commercial building landlords still use triple net leases which charge tenants a fraction of the total building energy costs based on how many square feet they occupy. So the incentive chain is broken: the landlords who could modify existing buildings or build new buildings don't pay for the operating energy costs. Various forms of arbitrage have addressed this "split incentives" or "broken agency" issue. Sub-metering the leased spaces and having landlords buy electricity "wholesale" and resell it "retail" to each tenant (usually with a 5-8% markup) is one way to address this problem. There are other ways to change the incentives.
Yup you're correct. That's why we're so excited about the new regulations going into place (like Local Law 87 in NY) where the building OWNER is on the hook for all the fines and helps solve this. There are tons of these regulations going into place: www.americanprogress.org/issues/green/reports/2020/04/30/484163/states-laying-road-map-climate-leadership/ Also - tenants themselves (think wholefoods, amazon, target) are getting savvy to the operating costs side of the equation and want to pay less on those in any case. So the pieces are falling into place to help on this issue.
Bitcoin investment is better than stock trading, I always tell people this because I have traded on the two and I can attest that Bitcoin is more profitable using the right strategy and Ma'am Juliana Andressa has the best strategy, Thank you
Most commercial building landlords still use triple net leases which charge tenants a fraction of the total building energy costs based on how many square feet they occupy. So the incentive chain is broken: the landlords who could modify existing buildings or build new buildings don't pay for the operating energy costs. Various forms of arbitrage have addressed this "split incentives" or "broken agency" issue. Sub-metering the leased spaces and having landlords buy electricity "wholesale" and resell it "retail" to each tenant (usually with a 5-8% markup) is one way to address this problem. There are other ways to change the incentives.
Yup you're correct. That's why we're so excited about the new regulations going into place (like Local Law 87 in NY) where the building OWNER is on the hook for all the fines and helps solve this. There are tons of these regulations going into place: www.americanprogress.org/issues/green/reports/2020/04/30/484163/states-laying-road-map-climate-leadership/
Also - tenants themselves (think wholefoods, amazon, target) are getting savvy to the operating costs side of the equation and want to pay less on those in any case.
So the pieces are falling into place to help on this issue.
Thank you so much
Bitcoin investment is better than stock trading, I always tell people this because I have traded on the two and I can attest that Bitcoin is more profitable using the right strategy and Ma'am Juliana Andressa has the best strategy, Thank you