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Assessing the Role of Financial Incentives in Promoting Eco-Friendly Houses in the Lisbon Metropolitan Area—Portugal

Author

Listed:
  • Matheus Koengkan

    (University of Coimbra Institute for Legal Research (UCILeR), University of Coimbra, 3000-018 Coimbra, Portugal)

  • José Alberto Fuinhas

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

  • Magdalena Radulescu

    (Department of Finance, Accounting and Economics, University of Pitesti, 110040 Pitesti, Romania
    Institute for Doctoral and Post-Doctoral Studies, University “Lucian Blaga” Sibiu, Bd. Victoriei, No. 10, 550024 Sibiu, Romania)

  • Emad Kazemzadeh

    (Department of Economics, Faculty of Economics and Administrative Sciences, Ferdowsi University of Mashhad, Mashhad 1357, Iran)

  • Nooshin Karimi Alavijeh

    (Department of Economics, Faculty of Economics and Administrative Sciences, Ferdowsi University of Mashhad, Mashhad 1357, Iran)

  • Renato Santiago

    (School of Economics and Management, Lusófona do Porto University, R. de Augusto Rosa 24, 4000-098 Porto, Portugal)

  • Mônica Teixeira

    (Department of Economics, Federal Fluminense University, Niteroi, Rio de Janeiro 24220-900, Brazil)

Abstract

This article investigates the impact of fiscal and financial incentives for energy efficiency labels on eco-friendly houses (houses with high energy efficiency certificates, such as A+, A, B, and B−) in 18 municipalities in the Lisbon metropolitan region during the period 2014–2020. The empirical results indicate that the variables of fiscal incentive policies for energy efficiency labels, income per capita, credit agreements for the purchase or construction of a house, and the number of completed dwellings in new constructions for family housing encourage eco-friendly houses. In contrast, the variable number of completed reconstructions per 100 completed new constructions has a negative impact. Although this study is constrained by data limitations resulting from the short period under analysis and the moderate number of municipalities available, it advances the discussions around energy efficiency in residential properties in Portugal. Furthermore, it investigates the effectiveness of tax incentive policies for energy efficiency seals as an instrument for promoting ecological houses in the municipalities of the Lisbon metropolitan area. Thus, the need to study the Portuguese capital stands out as it is the most populous city in the country and concentrates a large part of the economic activity.

Suggested Citation

  • Matheus Koengkan & José Alberto Fuinhas & Magdalena Radulescu & Emad Kazemzadeh & Nooshin Karimi Alavijeh & Renato Santiago & Mônica Teixeira, 2023. "Assessing the Role of Financial Incentives in Promoting Eco-Friendly Houses in the Lisbon Metropolitan Area—Portugal," Energies, MDPI, vol. 16(4), pages 1-20, February.
    • Handle: RePEc:gam:jeners:v:16:y:2023:i:4:p:1839-:d:1066476
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    References listed on IDEAS

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