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Incentives for information provision: Energy efficiency in the Spanish rental market

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  • Bian, Xueying
  • Fabra, Natalia

Abstract

In this paper we build a search model with asymmetric information regarding houses' energy efficiency. The objective is to shed light on the house owners' incentives to disclose energy certificates (ECs) in the rental market. Such incentives depend not only on the rent premium for more efficient houses - as previously documented - but also on the implicit rent penalty for unlabeled houses. Interestingly, we show that such a penalty is higher the greater the disclosure rate of ECs in the local market. This suggests that the enforcement of the EC regulation should be more stringent during the early phases, as the boost in the initial disclosure rate would strengthen the incentives for later adoption. We illustrate the theoretical predictions with empirical evidence from the Spanish rental market.

Suggested Citation

  • Bian, Xueying & Fabra, Natalia, 2020. "Incentives for information provision: Energy efficiency in the Spanish rental market," Energy Economics, Elsevier, vol. 90(C).
    • Handle: RePEc:eee:eneeco:v:90:y:2020:i:c:s0140988320301535
    DOI: 10.1016/j.eneco.2020.104813
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    2. Svetlana Ratner & Konstantin Gomonov & Svetlana Revinova, 2023. "Public Funding for Energy Innovation and Decarbonization Goals: A Coherence Challenge," International Journal of Energy Economics and Policy, Econjournals, vol. 13(4), pages 40-45, July.
    3. Cespedes-Lopez, Maria-Francisca & Perez-Sanchez, V. Raul & Mora-Garcia, Raul-Tomas, 2022. "The influence of housing location on energy ratings price premium in Alicante, Spain," Ecological Economics, Elsevier, vol. 201(C).
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    5. Rodolfo Sejas-Portillo & David Comerford & Mirko Moro & Till Stowasser, 2020. "Limited Attention in the Housing Market: Threshold Effects of Energy-Performance Certificates on Property Prices and Energy-Efficiency Investments," CESifo Working Paper Series 8669, CESifo.
    6. Maria-Francisca Cespedes-Lopez & Raul-Tomas Mora-Garcia, 2022. "Are Cave Houses a Sustainable Real Estate Alternative?," Land, MDPI, vol. 11(12), pages 1-17, December.
    7. Mingyue Li & Pujie Zhao & Lianbei Wu & Kai Chen, 2021. "Effects of Value Perception, Environmental Regulation and Their Interaction on the Improvement of Herdsmen’s Grassland Ecological Policy Satisfaction," IJERPH, MDPI, vol. 18(6), pages 1-23, March.
    8. Hammerle, Mara & White, Lee V. & Sturmberg, Bjorn, 2023. "Solar for renters: Investigating investor perspectives of barriers and policies," Energy Policy, Elsevier, vol. 174(C).
    9. Bu, Caiqi & Zhang, Kaixia & Shi, Daqian & Wang, Shuyu, 2022. "Does environmental information disclosure improve energy efficiency?," Energy Policy, Elsevier, vol. 164(C).
    10. Paúl Espinoza-Zambrano & Carlos Marmolejo-Duarte & Alejandra García-Hooghuis, 2023. "Libro del Edificio Electrónico (LdE-e): Advancing towards a Comprehensive Tool for the Management and Renovation of Multifamily Buildings in Spain," Sustainability, MDPI, vol. 15(4), pages 1-26, February.

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