HKGBC Green Tenancy Driver for Office Buildings
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CH 6
SPLIT INCENTIVE CONSENT
Having understood the fundamental fault behind the Split
Incentive, it is now time to apply this concept to the context of
Green Tenancy. A suitable holistic definition of Split Incentive
within Green Tenancy would be when those responsible for
paying the utility bills (i.e. Tenant) are not the same entity as
those making the capital investment decisions such as investing
in more efficient building services systems (i.e. Landlord).
However, it should be noted this definition is only correct in
certain scenarios. This creates the need to categorise different
scenarios in order to increase our understanding of Split
Incentive.
Definition
of
Split Incentive
in the context of
Green Tenancy
This section deals with the different types of Split Incentives found within Green Tenancy.
Understanding to what extent and how the Split Incentives affects stakeholder requires the
dissection of the responsibilities of parties, and for a better understanding, the categorisation
of these effects.
Categorising
Split Incentives
