IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v185y2024ics0301421523005013.html
   My bibliography  Save this article

The effectiveness of climate change regulations in the commercial real estate market

Author

Listed:
  • Akhtyrska, Yana
  • Fuerst, Franz

Abstract

Legislation to increase building energy efficiency is a key climate change policy instrument in many countries. Although most of these regulations concern the housing stock, office buildings are also a considerable source of greenhouse gas emissions. Office markets face fewer pricing regulations than the residential market and may thus provide a clearer pricing signal of any policy impacts. This paper focusses on the introduction of Minimum Energy Efficiency Standards (MEES) in England and Wales. Applying machine-learning methods, Difference in Differences (DiD) and Fixed Effects (FE) panel data estimation to a comprehensive database of the London office market, our results suggest that the MEES policy has had a measurable and significant impact and lowered the rents of the combined group of affected office units by 6–8% following the announcement of MEES and in the run-up to implementation. A weakly significant 4.4% rental discount is detected for the bordering but unaffected class of EPC E-rated office buildings relative to the A–C EPC group, perhaps due to market expectations of a further expansion of MEES.

Suggested Citation

  • Akhtyrska, Yana & Fuerst, Franz, 2024. "The effectiveness of climate change regulations in the commercial real estate market," Energy Policy, Elsevier, vol. 185(C).
    • Handle: RePEc:eee:enepol:v:185:y:2024:i:c:s0301421523005013
    DOI: 10.1016/j.enpol.2023.113916
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421523005013
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2023.113916?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:185:y:2024:i:c:s0301421523005013. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.