Energy Performance Certificates (EPCs) are intended to provide tenants and buyers with reliable information about the energy performance of buildings. As improved energy performance may increase building sale prices and rents, the EPCs are supposed to generate incentives for owners to invest in energy efficiency. The empirical evidence for a price premium associated with energy labels is, however, inconclusive and partly contradictory. By utilizing data from the Norwegian housing market, we reproduce the positive price premium effect found in earlier studies. However, when we check these results by taking advantage of the fact that the introduction of a mandatory energy certification system represents a quasinatural experiment, we find no evidence of a price premium. On the contrary, we present evidence that there is no effect of the energy label itself.

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Johannesen, Jan Tore Solstad and one anonymous reviewers for critical and constructive comments on earlier drafts.We are also indebted to The European Commission for funding through the BIOECON project.

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Abstract:Since the beginnings of the aquaculture industry in Norway, the salmon farming industry has grown from a pioneering niche to a massive industrial adventure. Since 1992, Norwegian salmon production has increased to ten times its 1992 level. By 2015, the Norwegian production constituted 53% of the world's production of Atlantic salmon. Therefore, it could be said that salmon farming is the most important industry in rural Norway today, with a yearly landing value of about 6.1 billion EUR. As the production has grown, along with the income, numerous environmental issues have arisen. The present paper gives an overview of these environmental problems and discusses potential solutions, as well as the need for a better and more holistic regulation of the industry. The experience from Norwegian salmon farming with respect to environmental issues and regulation may give important insights to both other salmon producing countries as well as producers of other fish species.

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