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Heterogeneous Effect of “Eco-Friendly” Dwellings on Transaction Prices in Real Estate Market in Portugal

Author

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  • Matheus Koengkan

    (Governance, Competitiveness and Public Policies (GOVCOPP), Department of Economics, Management, Industrial Engineering and Tourism (DEGEIT), University of Aveiro, 3810-193 Aveiro, Portugal)

  • José Alberto Fuinhas

    (Centre for Business and Economics Research (CeBER), Faculty of Economics, University of Coimbra, 3004-512 Coimbra, Portugal)

Abstract

The main objective of this research is to assess the impact of energy certificate ratings (EPCs) on the value per m 2 of Portuguese housing sales. Data from 289 Portuguese municipalities between 2014 and 2019, analysed with a fixed effects panel and method of moments quantile regression, were used. EPCs with high energy efficiency ratings (e.g., A+, A, B, and B-) are used as a proxy for dwellings with “green” or “environmentally friendly” certificates. On the other hand, ratings with a low energy efficiency (e.g., C, D, E, and F) are used as a proxy for dwellings with “non-green” or “not environmentally friendly” certificates. The results support that EPCs associated with green housing increase the value per m 2 of housing sales, and those associated with non-green housing decrease the sales value. It was also found that municipal GDP, tax/financial incentive policies for energy efficiency, and the number of completed dwellings in new constructions for family housing will increase sales value. On the other hand, credit agreements and completed reconstructions reduce sales value. Lastly, the results and outgrowths of this study will support the policymakers and governments in developing consistent policies and initiatives that promote the “green” or “eco-friendly” dwellings in Portugal or in similar economies.

Suggested Citation

  • Matheus Koengkan & José Alberto Fuinhas, 2022. "Heterogeneous Effect of “Eco-Friendly” Dwellings on Transaction Prices in Real Estate Market in Portugal," Energies, MDPI, vol. 15(18), pages 1-18, September.
    • Handle: RePEc:gam:jeners:v:15:y:2022:i:18:p:6784-:d:917158
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    Cited by:

    1. Matheus Koengkan & Nuno Silva & José Alberto Fuinhas, 2023. "Assessing Energy Performance Certificates for Buildings: A Fuzzy Set Qualitative Comparative Analysis (fsQCA) of Portuguese Municipalities," Energies, MDPI, vol. 16(7), pages 1-30, April.
    2. Matheus Koengkan & José Alberto Fuinhas & Anna Auza & Uğur Ursavaş, 2023. "The Impact of Energy Efficiency Regulations on Energy Poverty in Residential Dwellings in the Lisbon Metropolitan Area: An Empirical Investigation," Sustainability, MDPI, vol. 15(5), pages 1-29, February.
    3. Matheus Koengkan & José Alberto Fuinhas & Fernanda Paula Oliveira & Uğur Ursavaş & Natália Moreno, 2023. "Building a Sustainable Future: How Eco-Friendly Homes Are Driving Local Economic Development in Lisbon Metropolitan Area," Energies, MDPI, vol. 16(13), pages 1-34, June.

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