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Energy performance certificates – Informing the informed or the indifferent?

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

Abstract

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 quasi-natural 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.

Suggested Citation

  • Olaussen, Jon Olaf & Oust, Are & Solstad, Jan Tore, 2017. "Energy performance certificates – Informing the informed or the indifferent?," Energy Policy, Elsevier, vol. 111(C), pages 246-254.
    • Handle: RePEc:eee:enepol:v:111:y:2017:i:c:p:246-254
    DOI: 10.1016/j.enpol.2017.09.029
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    References listed on IDEAS

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    More about this item

    Keywords

    Q4; Q5; R2; R3; Energy performance certificates; Energy savings; Real estate pricing; Environmental regulation; Housing policy;
    All these keywords.

    JEL classification:

    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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