52
HKGBC Green Tenancy Driver for Office Buildings
Entity
responsible for the
upgrade and investment
on equipment
The main
entity
responsible for
using
that
equipment
The
entity
responsible for
paying the cost
of
equipment
usage
If more thought is put into this issue, methods can be employed to allow the price signal
to flow freely between Landlord and Tenant in order to address Split Incentives.
The Landlord-Tenant relationship allows for the categorisation of different types of
Split Incentives, depending the investor and the user of an equipment. Murtishaw &
Sathaye (2008) and Wilkerson (2012) have proposed
three
criteria which can be
considered by both Landlord and Tenant to determine if Split Incentives exist.
Is there a
Systematic Method
to
Categorise
and
Recognise
existing
Split Incentives
?
1.
2.
3.
CH 6
SPLIT INCENTIVE CONSENT
