Understanding the Solar Home Price Premium: Electricity Generation and “Green” Social Status
AbstractThis study uses a large sample of homes in the San Diego area and Sacramento, California area to provide some of the first capitalization estimates of the sales value of homes with solar panels relative to comparable homes without solar panels. Although the residential solar home market continues to grow, there is little direct evidence on the market capitalization effect. Using both hedonics and a repeat sales index approach we find that solar panels are capitalized at roughly a 3.5% premium. This premium is larger in communities with a greater share of college graduates and of registered Prius hybrid vehicles.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 17200.
Date of creation: Jul 2011
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Other versions of this item:
- Dastrup, Samuel R. & Graff Zivin, Joshua & Costa, Dora L. & Kahn, Matthew E., 2012. "Understanding the Solar Home price premium: Electricity generation and “Green” social status," European Economic Review, Elsevier, vol. 56(5), pages 961-973.
- Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters
- Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
- R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Production Analysis, and Firm Location - - - Housing Supply and Markets
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Do Residential Solar Power Subsidies Mainly Benefit the 1%?
by Matthew E. Kahn in The Reality-Based Community on 2013-07-27 16:24:24
- The Economics of Green Identity or How to Get Newt and Al Gore to Hold Hands and Jointly Support Reducing GHG Emissions
by Matthew E. Kahn in Environmental and Urban Economics on 2012-01-21 18:04:00
- Conservatives and Conservation
by Matthew E. Kahn in Environmental and Urban Economics on 2012-06-11 15:48:00
- Solar homesteads
by James Wimberley in The Reality-Based Community on 2012-07-26 18:11:23
- Some Economics of the Green Partisan Divide
by Matthew E. Kahn in Legal Planet on 2012-09-03 15:55:52
- My New Paper on the Price Premium for Energy Star Certified Homes in California
by Matthew E. Kahn in The Reality-Based Community on 2012-07-19 22:39:10
- Walls, Margaret & Palmer, Karen & Gerarden, Todd, 2013. "Is Energy Efficiency Capitalized into Home Prices? Evidence from Three US Cities," Discussion Papers dp-13-18, Resources For the Future.
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