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Hedonic estimation of the green value of residential housing

Author

Listed:
  • Catherine Baumont

    (Laboratoire d'Economie de Dijon (LEDi), Univ Bourgogne Franche-Comté)

  • Masha Maslianskaia-Pautrel

    (GRANEM, University of Angers)

  • Pierre Voyé

    (Laboratoire d'Economie de Dijon (LEDi), Univ Bourgogne Franche-Comté)

Abstract

Managing the energy demand in the residential sector could be achieved by the promotion of energy efficiency buildings. We assume that households adopting a green behavior are willing to pay a greater price to access to "green" housing. This added value is called the "green value". This paper studies the impact of the energy efficiency rating of a house, as certified by the Diagnostic de Performance Energetique (DPE), on housing prices. In order to do this, the hedonic price method has been applied to the real estate market – apartments and houses – in the urban area of Dijon from January 2013 to December 2014. The results indicate that the impact of DPE is mostly observed for the least performing classes. This negative impact depends on the type of the market: it is smaller for the apartment market. We also show that proximity to green amenities – outside the cities – has a positive effect only for house market.

Suggested Citation

  • Catherine Baumont & Masha Maslianskaia-Pautrel & Pierre Voyé, 2019. "Hedonic estimation of the green value of residential housing," Working Papers 2019.20, FAERE - French Association of Environmental and Resource Economists.
    • Handle: RePEc:fae:wpaper:2019.20
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Housing Green Value; Energy Performance Certificate; Residential Housing; Spatial Hedonic Models; Spatial analysis;
    All these keywords.

    JEL classification:

    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

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