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The Impacts of EPCS on Prague’s Residential Market Rents

Author

Listed:
  • Podškubka Tomáš

    (Assistant Professor Prague University of Economics and Business W. Churchill Sq. 1938/4 130 67 Prague 3 – Žižkov, Czechia)

  • Rýdlová Barbora

    (Ph.D. Assistant Professor Prague University of Economics and Business Czechia)

  • Arlt Josef

    (CSc. Professor Prague University of Economics and Business Czechia)

  • Krabec Tomáš

    (Ph.D., MBA Associate Professor Prague University of Economics and Business Czechia)

Abstract

The EU has introduced legal regulations to mitigate climate change, and it is pertinent to investigate economic incentives to invest in higher Energy Performance Certificates (EPC). This paper examines the impact of EPCs on asking rents in Prague’s residential property market using a hedonic regression model. A newly collected dataset of 1,118 rental advertisements is analyzed, with control for the apartment total area, condition, location, and energy efficiency. The results indicate that more energy-efficient residential properties command a rental premium, even though the magnitude varies across location segments. In highly desirable areas, factors such as accessibility and prestige play a crucial role, while in less attractive areas, the EPC ratings are less pronounced. The findings contribute to the existing literature on the economics of energy efficiency by providing empirical evidence from a Central and Eastern European city, offering insights for policymakers, investors, and tenants.

Suggested Citation

  • Podškubka Tomáš & Rýdlová Barbora & Arlt Josef & Krabec Tomáš, 2026. "The Impacts of EPCS on Prague’s Residential Market Rents," South East European Journal of Economics and Business, Sciendo, vol. 21(2), pages 55-72.
    • Handle: RePEc:vrs:seejeb:v:21:y:2026:i:2:p:55-72:n:1004
    DOI: 10.2478/jeb-2026-0010
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    References listed on IDEAS

    as
    1. Jeremy Gabe & Michael Rehm, 2014. "Do tenants pay energy efficiency rent premiums?," Journal of Property Investment & Finance, Emerald Group Publishing Limited, vol. 32(4), pages 333-351, July.
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    Keywords

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    JEL classification:

    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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