Incentive-Based Pay and Building Decarbonization: Experimental Evidence from the Weatherization Assistance Program | Erica Myers

Erica Myers is an Associate Professor of Economics at the University of Calgary. Erica will present the paper: ‘Incentive-Based Pay and Building Decarbonization: Experimental Evidence from the Weatherization Assistance Program’.

Abstract

Building energy efficiency has become a cornerstone of greenhouse gas mitigation strategies, with billions of dollars set aside for extensive upgrades in the coming years.  However, impact evaluations have revealed actual energy savings from home upgrade programs often fall short of projections, in part due to contractor underperformance.  Using field experiment results, we show refining one program design element—offering performance bonuses to contractors–increased natural gas savings by 24% and generated $5.39-$14.53 in social benefits per dollar invested.  Hence, changes to worker incentives can have sizable impacts on the cost effectiveness of GhG abatement in energy efficiency programs.

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