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When Residential Energy Labeling Becomes Irrelevant: Sustainability vs. Profitability in the Liberalized Chilean Property Market

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  • Felipe Encinas

    (Escuela de Arquitectura, Facultad de Arquitectura, Diseño y Estudios Urbanos, Pontificia Universidad Católica de Chile, Providencia, Santiago 7520245, Chile
    Centre for Sustainable Urban Development (CEDEUS), Providencia, Santiago 7520246, Chile
    UC Energy Research Centre (CE-UC), Pontificia Universidad Católica de Chile, Macul, Santiago 7820244, Chile)

  • Carlos Marmolejo-Duarte

    (Centre for Land Policy and Valuations (CPSV), Barcelona’s School of Architecture (ETSAB), Universitat Politècnica de Catalunya, 08028 Barcelona, Spain)

  • Carlos Aguirre-Nuñez

    (Escuela de Construcción, Facultad de Arquitectura, Diseño y Construcción, Universidad de las Américas, Providencia, Santiago 7500975, Chile)

  • Francisco Vergara-Perucich

    (Centro de Producción del Espacio, Facultad de Arquitectura, Diseño y Construcción, Universidad de las Américas, Providencia, Santiago 7500975, Chile)

Abstract

The study of the relevance of energy efficiency attributes on residential choices is usually based on stated preferences, using performance indicators. However, this issue has not been researched in developing countries, where energy certification schemes have a low adoption rate. This article paper uses a methodology based on a Kansei Engineering and Kano Model to identify home buyers’ energy performance perceptions in three real estate developments in Santiago de Chile. Surprisingly, energy ratings negatively affected the survey respondents’ willingness to buy. On the other hand, the ratings indicated that the most relevant attribute for influencing the purchasing is the perception of the home as a good investment. This finding contradicts most of the studies on energy certification and shows the relevance given to the profit of purchasing new housing units. Therefore, the analyses suggest that this situation represents a decoupling of consumer perception from both the items measured by energy labels and their contribution to consumer choices.

Suggested Citation

  • Felipe Encinas & Carlos Marmolejo-Duarte & Carlos Aguirre-Nuñez & Francisco Vergara-Perucich, 2020. "When Residential Energy Labeling Becomes Irrelevant: Sustainability vs. Profitability in the Liberalized Chilean Property Market," Sustainability, MDPI, vol. 12(22), pages 1-17, November.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:22:p:9638-:d:447325
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