The capitalization of energy efficiency

Autor: Nils Kok, Dirk Brounen, Erdal Aydin
Přispěvatelé: Finance, RS: GSBE Theme Sustainable Development, Tilburg Sustainability Center, Department of Economics, Research Group: Economics
Jazyk: angličtina
Rok vydání: 2020
Předmět:
Economics and Econometrics
Information asymmetry
media_common.quotation_subject
DEMAND
Consumer Economics: Empirical Analysis
Valuation of Environmental Effects
House prices
d12 - Consumer Economics: Empirical Analysis
Monetary economics
Certification
Real Estate
q51 - Valuation of Environmental Effects
VARIABLES
0502 economics and business
Urban
QUALITY
Quality (business)
Rural
050207 economics
Market value
Capitalization
050205 econometrics
media_common
VALUES
05 social sciences
and Transportation Economics: Housing Demand
Certificate
Regional
GASOLINE PRICES
Energy labels
Urban Studies
Regression discontinuity
Energy efficiency
LABELS
Regression discontinuity design
FUEL-ECONOMY
Business
r21 - Urban
Rural
Regional
Real Estate
and Transportation Economics: Housing Demand
r21 - Urban
Efficient energy use
Zdroj: Journal of Urban Economics, 117:103243. Academic Press Inc.
ISSN: 1095-9068
0094-1190
DOI: 10.1016/j.jue.2020.103243
Popis: This paper investigates how private consumers capitalize energy efficiency in the housing market, and the extent to which the provision of an energy performance certificate (EPC) affects such capitalization. We explicitly address methodological lacunae in the literature, using an exhaustive battery of identification strategies. The results indicate that energy efficiency is indeed capitalized into home prices, with OLS estimates biased downwards. Using an IV approach, we find that as the level of energy efficiency increases by ten percent, the market value of the dwelling increases by around 2.2 percent – quite a precise reflection of both the required capital outlay and future energy savings. These results are confirmed in a repeat-sales analysis. Importantly, examining the role of energy performance certificates (EPCs), we document that the extent of capitalization of energy efficiency is not affected by information provision, questioning the continued need for government-imposed certification programs.
Databáze: OpenAIRE
Externí odkaz: