IDEAS home Printed from https://ideas.repec.org/p/een/ccepwp/2105.html

Effects of rooftop solar on housing prices in Australia

Author

Listed:
  • Rohan Best

    (Department of Economics, Macquarie University)

  • Paul J. Burke

    (Crawford School of Public Policy, Australian National University)

  • Rabindra Nepal

    (School of Business, Faculty of Business and Law, University of Wollongong)

  • Zac Reynolds

    (Department of Economics, Macquarie University)

Abstract

Hedonic models of housing prices face the risk of omitted variable bias due to the challenge of controlling for all relevant property attributes. The level of household financial assets is a key but underexplored control that may help to account for some of these difficult-to-observe property characteristics. Using large Australian household surveys, we find that controlling for household financial assets reduces the observed effect of having solar photovoltaic panels on housing prices. The elasticity of housing price with respect to solar capacity is 0.09 for households with solar panels. Controlling for financial assets may be of use in other studies seeking to estimate the effect of home additions on housing prices.

Suggested Citation

  • Rohan Best & Paul J. Burke & Rabindra Nepal & Zac Reynolds, 2021. "Effects of rooftop solar on housing prices in Australia," CCEP Working Papers 2105, Centre for Climate & Energy Policy, Crawford School of Public Policy, The Australian National University.
    • Handle: RePEc:een:ccepwp:2105
    as

    Download full text from publisher

    File URL: https://openresearch-repository.anu.edu.au/bitstreams/d0805f84-baff-4978-989b-d7ee791b12c2/download
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dodd, Tracey & Nelson, Tim, 2022. "Australian household adoption of solar photovoltaics: A comparative study of hardship and non-hardship customers," Energy Policy, Elsevier, vol. 160(C).
    2. Wim Van Opstal & Anse Smeets, 2022. "Market-Specific Barriers and Enablers for Organizational Investments in Solar PV—Lessons from Flanders," Sustainability, MDPI, vol. 14(20), pages 1-26, October.
    3. Best, Rohan & Chareunsy, Andrea, 2022. "The impact of income on household solar panel uptake: Exploring diverse results using Australian data," Energy Economics, Elsevier, vol. 112(C).
    4. Asproudis, Elias & Gedikli, Cigdem & Talavera, Oleksandr & Yilmaz, Okan, 2024. "Returns to solar panels in the housing market: A meta learner approach," Energy Economics, Elsevier, vol. 137(C).
    5. Gillingham, Kenneth T. & Watten, Asa, 2024. "How is rooftop solar capitalized in home prices?," Regional Science and Urban Economics, Elsevier, vol. 107(C).
    6. Best, Rohan, 2022. "Household wealth of tenants promotes their solar panel access," Economic Modelling, Elsevier, vol. 106(C).

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:een:ccepwp:2105. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCEP (email available below). General contact details of provider: https://edirc.repec.org/data/asanuau.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.