The value of domestic building energy efficiency - evidence from Ireland
Following the transposition of the EU Energy Performance of Buildings Directive into Irish law, all properties offered for sale or to let in Ireland are obliged to have an energy efficiency rating. This paper analyses the effect of energy efficiency ratings on the sale and rental prices of properties in the Republic of Ireland. Using the Heckman selection technique we model the decision to advertise the energy efficiency rating of a property and the effect of energy efficiency ratings on property values. Our results show that energy efficiency has a positive effect on both the sales and rental prices of properties, and that the effect is significantly stronger in the sales segment of the property market. We also analyse the effect of energy efficiency across different market conditions and we find that the effect of the energy rating is stronger where market conditions are worse.
|Date of creation:||01 Jun 2012|
|Date of revision:|
|Contact details of provider:|| Postal: Manor Rd. Building, Oxford, OX1 3UQ|
Web page: http://www.economics.ox.ac.uk/
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- Hunt Allcott & Michael Greenstone, 2012.
"Is There an Energy Efficiency Gap?,"
Journal of Economic Perspectives,
American Economic Association, vol. 26(1), pages 3-28, Winter.
- Amecke, Hermann, 2012. "The impact of energy performance certificates: A survey of German home owners," Energy Policy, Elsevier, vol. 46(C), pages 4-14.
- Silvia Banfi & Mehdi Farsi & Massimo Filippini & Martin Jakob, 2005.
"Willingness to Pay for Energy-Saving Measures in Residential Buildings,"
CEPE Working paper series
05-41, CEPE Center for Energy Policy and Economics, ETH Zurich.
- Banfi, Silvia & Farsi, Mehdi & Filippini, Massimo & Jakob, Martin, 2008. "Willingness to pay for energy-saving measures in residential buildings," Energy Economics, Elsevier, vol. 30(2), pages 503-516, March.
- Brounen, Dirk & Kok, Nils, 2011. "On the economics of energy labels in the housing market," Journal of Environmental Economics and Management, Elsevier, vol. 62(2), pages 166-179, September.
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