On the economics of energy labels in the housing market

Brounen, Dirk; Kok, Nils

doi:10.1016/j.jeem.2010.11.006

Cited by 452 publications

(284 citation statements)

References 28 publications

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“…Buildings account for 40% of the energy consumption in Europe [1], and residential homes contribute to around one sixth of emissions globally [2]. Supplementary literature has begun to emerge on the willingness to pay for energy efficiency [3][4][5][6][7][8][9][10], whether energy savings are considered in buying decisions [11,12], and if financing should stem from private or public sources [13][14][15][16].…”

Section: Literature Reviewmentioning

confidence: 99%

Buildings Energy Performance in a Market Comparison Approach

et al. 2017

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Abstract:The current regulations on the energy certification of buildings represent for the real estate market and the building sector a real cultural revolution. In recent years, the focus on the energy efficiency of buildings has grown exponentially. It is therefore necessary that the property valuations and methodologies used for this purpose bear in mind the energy quality of buildings. This study aims to determine the contribution of an energy performance feature to the real estate property value. This information can help, on the one hand, to understand the energy savings and the corresponding savings income in the property management and, on the other, to control the air pollution from CO 2 emission reduction. The energy performance hedonic price and the CO 2 emission price are appraised in the Market Comparison Approach (MCA).

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Section: Literature Reviewmentioning

confidence: 99%

Buildings Energy Performance in a Market Comparison Approach

et al. 2017

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“…Despite the environmental benefits and energy savings that can be gained from more energyefficient homes, evidence of buyer appreciation of the value of energy efficiency and domestic investment in efficiency measures to boost property values has been limited. Supplementary literature has begun to emerge on willingness to pay for energy efficiency (Banfi et al 2008;Brounen & Kok 2011;Cajias & Piazolo 2013;Cerin et al 2014; Department of Energy and Climate Change UK 2013; European Commission EC 2013a; Hyland et al 2013;McLean et al 2013;Popescu et al 2012), whether energy savings are considered in buying decisions (Amecke 2012;Murphy 2014), and if financing should stem from private or public sources (Allcot & Greenstone 2012;European Commission EC 2013b;Gillingham et al 2009Gillingham et al , 2012. This paper adds to this literature, providing hedonic value estimates for residential energy efficiency in the Dublin region of Ireland over the period 2009-2014.…”

Section: Introductionmentioning

confidence: 99%

The price effect of building energy ratings in the Dublin residential market

Stanley

Lyons

2015

Energy Efficiency

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This paper is an empirical study of the relationship between the energy performance rating of residential homes in the Dublin market between 2009 and 2014 and their market prices, controlling for building type, size, age and location. Initial results suggest that energy efficiency has a significant, positive relationship with list price. A 50-point improvement in the Energy Performance Indicator (kWh/m 2 /year) is associated with a 1.5 % higher list price. Alternatively, using the Building Energy Rating metric, a 1-point improvement in the 15-point scale from G to A1 yields a list price increase of 1 %. This mirrors findings for efficiency price premiums on a nationwide basis from Hyland et al. (2013). We also find that it is important to include controls for the age of the dwelling to avoid biased energy efficiency estimates in the hedonic model.

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“…Eichholtz et al (2013), Miller et al (2009), and Fuerst and McAllister (2011) show that green-certified buildings enjoy a premium on their rental prices and/or selling prices compared with similar non-certified buildings. Studies that analyze green buildings outside the United States have also found similar positive impacts of green certification on the economic values of buildings (Brounen and Kok 2010;Yoshida and Sugiura 2011).…”

Section: Introductionmentioning

confidence: 76%

“…Thus, another stream of literature analyzes the motives of buildings obtaining green certificates 2 and the diffusion patterns of green certificates. Using the data from Dutch housing market, Brounen and Kok (2010) run logit models on why some households apply for green certificates while others do not. They find that smaller and post-war homes have higher probability to adopt green certificates and that the adoption rates are positively correlated with the number of "green voters".…”

Section: Introductionmentioning

confidence: 99%

The diffusion of voluntary green building certification: a spatial approach

2014

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Improvements in overall sustainability include reductions in energy consumption. There remain significant yet largely unexploited opportunities to reduce energy consumption of commercial buildings. The investments required for green certification can help systematically improve the sustainability of the design of buildings. If the percentage of buildings with green certificates increases, sustainability of the overall building sector can be improved. In order to facilitate the diffusion of green commercial buildings, it is important to understand the patterns of the diffusion and the key factors influencing buildings' decisions. Applying a spatial fraction logit model and an instrumental variable approach to data on commercial buildings for New York, Arizona, Colorado, and Florida, this paper demonstrates that there is strong spatial correlation in the diffusion of green building certificates. It also finds that the split-incentive problem between building owners and renters plays a role in the diffusion. The findings have important implications for policy makers. By analyzing the interactions of the green buildings and the characteristics of the green building clusters, the results are useful in the identification of buildings that are more likely to adopt green certificates.

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On the economics of energy labels in the housing market

Cited by 452 publications

References 28 publications

Buildings Energy Performance in a Market Comparison Approach

Buildings Energy Performance in a Market Comparison Approach

The price effect of building energy ratings in the Dublin residential market

The diffusion of voluntary green building certification: a spatial approach

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