PurposeThe purpose of this paper is to investigate the effect of energy consumption on the financial performance of German residential buildings in a large panel framework. The authors provide evidence that energy efficiency in the residential sector is a relevant factor affecting both tenant investment decisions and consequently the performance of investor portfolios.Design/methodology/approachBased on the IPD Database and information from the German statistical office, the authors create portfolios of buildings across several energy consumption levels in order to describe the energy pricing mechanism in the context of total return and rent price. Furthermore, the authors apply conditional and unconditional regressions over the period of 2008 and 2010, to accurately quantify the energy price premium in the German residential market.FindingsThe descriptive portfolio results show that energy‐efficient buildings yield an up to 3.15 percent higher return and 0.76 €/m2 higher rent than inefficient buildings. Furthermore, the regression results indicate that a one percent decline in energy consumption affects the total return of buildings positively by +0.015 percent. The hedonic results additionally show that one percent energy conservation boosts rent prices by +0.08 percent and market value by +0.45 percent, ceteris paribus.Originality/valueOverall, the study presents an alternative methodology for describing and estimating hedonic datasets and offers some initial empirical evidence on the energy price premium in German residential markets. The paper contributes to prior European studies regarding the use and implications of energy performance certificates and confirms their significant impact on residential housing performance variables.

No abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Capital and Trade Flows in Europe and the Impact of Enlargement * Abstract:The Eastern enlargement of the European Union (EU) is likely to give a further boost to trade and capital flows, yet empirical evidence on the possible magnitudes is still scarce. This paper uses four different datasets to estimate the determinants of international asset holdings and trade flows. We find in most regressions that EU membership has a significant effect. Based on additional simulations of the expected flows to ten transition economies, we conclude that for the EU candidates actual values are still far below expected ones in most cases. Consequently, we anticipate rising capital and trade flows with the approach of EU accession, in particular for the seven EU candidates besides the Czech Republic, Hungary and Poland.

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte.

No abstract