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Energy Performance Certificates—The Role of the Energy Price

Author

Listed:
  • Jon Olaf Olaussen

    (NTNU Business School, Norwegian University of Science and Technology, 7491 Trondheim, Norway)

  • Are Oust

    (NTNU Business School, Norwegian University of Science and Technology, 7491 Trondheim, Norway)

  • Jan Tore Solstad

    (NTNU Business School, Norwegian University of Science and Technology, 7491 Trondheim, Norway)

  • Lena Kristiansen

    (Sparebank 1 Regnskapshuset SMN, Postboks 4799 Torgaard, 7467 Trondheim, Norway)

Abstract

Energy performance certificates (EPCs) were introduced to give property buyers better information about the energy efficiency of dwellings and provide incentives to make energy-efficient investments. Previous studies on the effect of EPCs on property value have yielded divergent results, with some studies finding that energy labels affect property values, but others finding that energy labels have little or no effect. The present paper takes the analysis one step further. Using data on energy prices in combination with transaction data from Oslo, we conclude that not only the energy label, but also the energy performance of dwellings in general, has little to no effect on transaction prices. This result is in line with the inferences of several survey studies, which indicate that when people buy a dwelling, they pay considerably less attention to its energy performance compared with other factors, such as the location, neighborhood, size, garden, and the number of bedrooms.

Suggested Citation

  • Jon Olaf Olaussen & Are Oust & Jan Tore Solstad & Lena Kristiansen, 2019. "Energy Performance Certificates—The Role of the Energy Price," Energies, MDPI, vol. 12(18), pages 1-14, September.
    • Handle: RePEc:gam:jeners:v:12:y:2019:i:18:p:3563-:d:268106
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    References listed on IDEAS

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    1. Olaussen, Jon Olaf & Oust, Are & Solstad, Jan Tore, 2017. "Energy performance certificates – Informing the informed or the indifferent?," Energy Policy, Elsevier, vol. 111(C), pages 246-254.
    2. Murphy, Lorraine, 2014. "The influence of the Energy Performance Certificate: The Dutch case," Energy Policy, Elsevier, vol. 67(C), pages 664-672.
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    8. Carlos Marmolejo-Duarte & Ai Chen, 2019. "The Uneven Price Impact of Energy Efficiency Ratings on Housing Segments. Implications for Public Policy and Private Markets," Sustainability, MDPI, vol. 11(2), pages 1-23, January.
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    Cited by:

    1. 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.
    2. Taruttis, Lisa & Weber, Christoph, 2022. "Estimating the impact of energy efficiency on housing prices in Germany: Does regional disparity matter?," Energy Economics, Elsevier, vol. 105(C).
    3. Marmolejo-Duarte, Carlos & Chen, Ai, 2022. "Uncovering the price effect of energy performance certificate ratings when controlling for residential quality," Renewable and Sustainable Energy Reviews, Elsevier, vol. 166(C).
    4. Michele Loberto & Alessandro Mistretta & Matteo Spuri, 2023. "The capitalization of energy labels into house prices. Evidence from Italy," Questioni di Economia e Finanza (Occasional Papers) 818, Bank of Italy, Economic Research and International Relations Area.
    5. Diego Menegon & Daniela Lobosco & Leopoldo Micò & Joana Fernandes, 2021. "Labeling of Installed Heating Appliances in Residential Buildings: An Energy Labeling Methodology for Improving Consumers’ Awareness," Energies, MDPI, vol. 14(21), pages 1-17, October.
    6. Yung Yau & Huiying (Cynthia) Hou & Ka Chi Yip & Queena Kun Qian, 2021. "Transaction Cost and Agency Perspectives on Eco-Certification of Existing Buildings: A Study of Hong Kong," Energies, MDPI, vol. 14(19), pages 1-20, October.

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