Doing good but not that well? A dilemma for energy conserving homeowners

Wahlström, Marie H.

doi:10.1016/j.eneco.2016.09.025

Cited by 33 publications

(30 citation statements)

References 14 publications

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“…The impact is substantial: 3 percent compared to 6 percent in the default model, not controlling for various kinds of biases. Our estimated capitalization effect is around 3 percent, which is lower than, for example, that in [8][9][10][11]. On the other hand, compared to [10], we estimated a statistically significant positive impact on the Swedish housing market.…”

Section: Discussioncontrasting

confidence: 60%

“…In the literature, omitted variable bias has been handled by restricting the sample in various ways. The author of [10] limited the data set into several submarkets (age groups and regions) to test the robustness of the estimates. The authors of.…”

Section: Methodsmentioning

confidence: 99%

“…The author of [10] included the number of days with frost per year as one of the covariates into the hedonic price equation. The impact of climate on house prices is highly significant.…”

Section: Methodsmentioning

confidence: 99%

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Energy Performance Certificates and Its Capitalization in Housing Values in Sweden

Wilhelmsson

2019

Sustainability

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The impact on energy performance certificates on housing prices has been investigated extensively in recent years. However, the results of these investigations are mixed. We add to the literature by more specifically controlling for potential biases, by employing a combination of alternative approaches to estimate the causal relationship between house prices and energy performance certificates. We use a traditional hedonic modeling approach, but we additionally employ propensity score methods to be able to compare treated houses with a control group. We also investigate the impact of the outliers, spatial dependency, and parameter heterogeneity of our estimates. Moreover, we use the quantile regression technique to test the hypothesis that the capitalization effect varies across the price distribution. Our results, analyzing more than 100,000 observations, indicate there is an upward bias if one is not controlling for outlier and selection bias. Regardless of the propensity score method approach, the results are lower than a model (around 3 percent capitalization, compared to 6 percent). However, our results do not support that the impact of energy performance certificates varies in the price distribution. Consequently, the certificates are not differently capitalized in the high-end housing price segment. Finally, our results support the hypothesis that the energy performance certificate should be more capitalized into house prices in the northern and colder parts of Sweden than in the southern regions.

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Section: Discussioncontrasting

confidence: 60%

Section: Methodsmentioning

confidence: 99%

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Energy Performance Certificates and Its Capitalization in Housing Values in Sweden

Wilhelmsson

2019

Sustainability

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“…It should be noticed that there are 11 out of the 52 studies that offered no data about the market penetration of green labels [32], [36], [40], [41], [48], [51], [65]- [68]. The relevant information extracted from these studies, along with all the other previously mentioned, is available to the reader in Table 2.…”

Section: Is the Average Consumer Paying A Premium?mentioning

confidence: 99%

Can green labels become the new normal?

et al. 2019

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This study sought to review the effectiveness of green labels on the residential real estate market. As past studies revealed, green labels increased property prices, which motivated developers to build more green certified buildings. However, contradictory studies revealed that many developers did not use green labels due to a lack of consumer demand. Therefore, what impact do green labels have on the residential housing market? A meta-analysis of 36 articles presenting 52 different studies, published between 2008-2018, suggests that the price premium charged for green labels may have been systematically overestimated. Consumers’ willingness-to-pay (derived from correlating green labels with purchase price) does not necessarily represent the average consumer but green consumers. The conclusion that follows from this analysis is that full market transformation via green labels is unlikely to take place because only a fraction of the population is willing to pay the premium. Therefore, full adoption is unlikely without other market “interventions”.

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“…A growing literature analyses the value associated with high energy performance signaled via EPCs in the commercial (Eichholtz et al, 2010) and the residential housing market in the United States (Kahn and Kok, 2014;Walls et al, 2017) and in Europe (Brounen and Kok, 2011;Hyland et al, 2013;Wahlström, 2016). Conversely, the reasons behind low disclosure of energy performance information have rarely been considered.…”

Section: Introductionmentioning

confidence: 99%

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

Cornago

Dressler

2020

Resource and Energy Economics

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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.

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Doing good but not that well? A dilemma for energy conserving homeowners

Cited by 33 publications

References 14 publications

Energy Performance Certificates and Its Capitalization in Housing Values in Sweden

Energy Performance Certificates and Its Capitalization in Housing Values in Sweden

Can green labels become the new normal?

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

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