Uncovering the price effect of energy performance certificate ratings when controlling for residential quality

In the last decade, market-mediated financial incentives for energy-efficient construction drawn from information policy, including energy performance certificates (EPC), have been intensively researched. While hedonic-based research seems to confirm a positive correlation between residential prices...

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Detalhes bibliográficos
Autores: Marmolejo Duarte, Carlos Ramiro|||0000-0001-7051-7337, Chen, Ai
Formato: artículo
Fecha de publicación:2022
País:España
Recursos:Universitat Politècnica de Catalunya (UPC)
Repositorio:UPCommons. Portal del coneixement obert de la UPC
Idioma:inglés
OAI Identifier:oai:upcommons.upc.edu:2117/373854
Acesso em linha:https://hdl.handle.net/2117/373854
https://dx.doi.org/10.1016/j.rser.2022.112662
Access Level:acceso abierto
Palavra-chave:Housing -- Prices
Dwellings -- Energy conservation
Energy performance certificates
Hedonic prices
Energy efficiency
Residential buildings
Barcelona
Habitatge -- Preus
Habitatges -- Estalvi d'energia
Àrees temàtiques de la UPC::Urbanisme
Àrees temàtiques de la UPC::Arquitectura::Tipologies d'edificis::Habitatges
Descrição
Resumo:In the last decade, market-mediated financial incentives for energy-efficient construction drawn from information policy, including energy performance certificates (EPC), have been intensively researched. While hedonic-based research seems to confirm a positive correlation between residential prices and EPC ratings, opinion-based studies have found that these ratings have a negligible effect on price formation. This paper explores whether insufficient control of non-energy-related architectural attributes in hedonic specifications is responsible for such a divergence. To achieve this, a case-by-case quality assessment is performed for a sample of listed apartments in Barcelona. Then, architectural assessment is introduced as a control in the context of hedonic analysis. The results suggest that EPC ratings show a positive correlation with prices (1.8% price increase for each EPC increment) only when location, general architectural attributes, and basic quality attributes are controlled. Conversely, when architectural quality is thoroughly controlled, such a correlation disappears. However, EPC rating remains as a price driver (7.5% price increase for A/B/C ratings) for the upper tier of apartments in central and affluent zones. Such findings have relevant implications for developers and energy policy.