Energy performance certificates – Informing the informed or the indifferent?

Olaussen, Jon Olaf; Oust, Are; Solstad, Jan Tore

doi:10.1016/j.enpol.2017.09.029

Cited by 93 publications

(74 citation statements)

References 15 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…According to the studies reviewed in the next section, home selling prices can vary up to 30.5% (for rating A, the most efficient one, in relation to rating G as the most inefficient) in the Danish case [8] or as little as 5% (A/G) in the case of the Irish renting market [9]. However, there is evidence suggesting that EPC labels do not play any role in price discrimination in the Oslo market [1]. Differences in climate and energy costs in relation to home prices and, perhaps, environmental concerns may be behind such divergences.…”

mentioning

confidence: 99%

The Uneven Price Impact of Energy Efficiency Ratings on Housing Segments. Implications for Public Policy and Private Markets

Duarte

2019

Sustainability

View full text Add to dashboard Cite

In the literature, there is extensive, although in some cases inconclusive, evidence on the impact of Energy Performance Certificates (EPC) on housing prices. Nonetheless, the question of whether such an impact is homogenous across residential segments remains highly unexplored. This paper addresses this latter issue utilizing multifamily listing data in metropolitan Barcelona. In doing so, first the entire sample is analyzed using a hedonic model. Second, the sample is split on the basis of a multivariate segmentation. Finally, separated hedonic models are specified again. The results suggest that in general, there is a modest impact of EPC ratings on listing prices, nonetheless it is not homogeneous across housing segments: (1) for the most modern apartments, with state-of-the-art features and active environmental comfort, energy ratings seem to play a null role in the formation of prices; (2) conversely, for the cheapest apartments, apartments boasting the most basic features, and apartments located in low-income areas, the "brown discount" is enormously significant, potentially depreciating the equity of those who have the least resources to carry out an energy retrofit. These results have implications for the assessment of the EPBD and its Spanish transposition, since a very well-intentioned environmental policy could have potentially harmful social repercussions in the absence of corrective measures.Commission saw the EPC scheme as "a power tool to create a demand-driven market for energy efficient buildings (p. 5) [6].Among all the real estate markets, the residential one is a special case since, due to the size of its stock, it consumes much more energy than commercial properties [7]. In the literature, there is extensive, yet in some case inconclusive, evidence regarding the existence of market premiums for efficient homes. According to the studies reviewed in the next section, home selling prices can vary up to 30.5% (for rating A, the most efficient one, in relation to rating G as the most inefficient) in the Danish case [8] or as little as 5% (A/G) in the case of the Irish renting market [9]. However, there is evidence suggesting that EPC labels do not play any role in price discrimination in the Oslo market [1]. Differences in climate and energy costs in relation to home prices and, perhaps, environmental concerns may be behind such divergences. As such, there are no reasons to believe that the impact of EPC labels is stationary across housing segments within the same city, where household budgets, personal tastes, and priorities, as well as home attributes and prices also vary in a significant manner. As a matter of fact, in the office market, there is evidence suggesting that "green labels" are contingent to characteristics of buildings in the determination of prices [10].The aim of this paper is to test whether the impact of EPC ratings on housing prices is the same in different market segments within a city. This analysis is relevant since the identification of divergent impacts may help to orien...

show abstract

mentioning

confidence: 99%

The Uneven Price Impact of Energy Efficiency Ratings on Housing Segments. Implications for Public Policy and Private Markets

Duarte

2019

Sustainability

View full text Add to dashboard Cite

show abstract

“…In order to study the policy effect itself we apply a method developed in Olaussen et al (2017). After reproducing the hedonic model from earlier studies, we run the same hedonic model for the dwellings on the pre historic preservation dataset.…”

Section: Hedonic Modelsmentioning

confidence: 99%

“…In order to study the price effect from historical preservation policies itself, we apply a method developed in Olaussen et al (2017). First, we reproduce the hedonic model from earlier studies, and then we control to see if the same price premiums existed also before the event of historical preservation.…”

Section: Introductionmentioning

confidence: 99%

The impact of historic preservation policies on housing values: a case study in Norway

Nesset¹,

Oust²,

Staines³

2018

25th Annual European Real Estate Society Conference

Self Cite

View full text Add to dashboard Cite

Dwellings of historic value offer qualities that benefits the owner or user, or the society in general. Historic preservation involve use of different policies including push and pull strategies to help protect and manage historic valuable dwellings for present and future generations. The majority of previous studies aiming to assess the impact of historic preservation on housing values employ hedonic pricing models to control for the heterogeneous nature of dwellings. These studies show deviant results and cannot, however conclude whether the observed historic preservation premium are due to a policy effect because it is likely to include a heritage effect due to unobserved characteristics that got the dwelling historic preserved in the first place. This study expands upon previous studies by introducing a unique dataset, which combines data of historic preserved dwellings in Oslo, Norway, and data from the housing market from 1990 to 2017, allowing us to study sales prices for the same dwellings both before and after the action of historic preservation. We further address the omitted variable bias by estimating a two-way fixed effects model including a differences-in-differences estimator. Our results suggest a policy premium of about 4%. Moreover, results suggest that the dwellings subject to the strictest policy hold a lower policy premium than the dwellings subject to the less strict policy, what implies quite clear policy recommendations. ¤ Table note: Missing values in the case of year of construction. Pre (post) historic preservation: 2 (13) in the case of historic preserved and 3 (4) in the case of control. Size is measured in square meters.

show abstract

“…By way of exception, Frondel et al (2018) and Olaussen et al (2017) study the change in housing prices during a shift from a voluntary to a mandatory disclosure regime in Germany and Norway, while Bian and Fabra (2018) analyze how penalties for nondisclosure aect incentives to obtain and disclose certicates in Spain.…”

Section: Introductionmentioning

confidence: 99%

“…Finally, Olaussen et al (2017) observe data on real estate transactions in Oslo, Norway, before and after the introduction of mandatory EPC disclosure. Assuming the dwellings maintain the same EPC rating throughout the 15-year time window of their dataset (which amounts to ruling out any renovation works), they nd that energy eciency ratings were valued even prior to mandatory disclosure.…”

mentioning

confidence: 99%

Incentives to (not) disclose energy performance information in the housing market

Cornago

Dressler

2020

Resource and Energy Economics

View full text Add to dashboard Cite

Disclosure of energy performance certicates (EPCs) is often incomplete, which hampers their eectiveness in relieving information asymmetries between landlords and tenants in the housing market. Even when a certicate is available, landlords do not always disclose it. This contradicts the unraveling result, according to which all landlords should disclose quality information unless it is costly to do so. We leverage a cross-sectional dataset of residential rental advertisements from the Belgian region of Brussels to empirically evaluate incentives to disclose an EPC. We nd that two fundamental assumptions for the unraveling result are not conrmed in our setting: tenants value energy performance of rental property only when dwellings are of very high quality and do not appear to rationally adjust their expectations when faced with dwellings that withhold their EPC. The paper formulates specic policy advice for reforming EPC mechanisms to increase disclosure rates.

show abstract

Energy performance certificates – Informing the informed or the indifferent?

Cited by 93 publications

References 15 publications

The Uneven Price Impact of Energy Efficiency Ratings on Housing Segments. Implications for Public Policy and Private Markets

The Uneven Price Impact of Energy Efficiency Ratings on Housing Segments. Implications for Public Policy and Private Markets

The impact of historic preservation policies on housing values: a case study in Norway

Incentives to (not) disclose energy performance information in the housing market

Contact Info

Product

Resources

About