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|
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- Banfi, Silvia & Farsi, Mehdi & Filippini, Massimo & Jakob, Martin, 2008.
"Willingness to pay for energy-saving measures in residential buildings,"
Elsevier, vol. 30(2), pages 503-516, March.
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- Hunt Allcott & Michael Greenstone, 2012.
"Is There an Energy Efficiency Gap?,"
NBER Working Papers
17766, National Bureau of Economic Research, Inc.
- 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.
- Amecke, Hermann, 2012. "The impact of energy performance certificates: A survey of German home owners," Energy Policy, Elsevier, vol. 46(C), pages 4-14.
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