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Do financial and fiscal incentive policies increase the energy efficiency ratings in residential properties? A piece of empirical evidence from Portugal

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  • Koengkan, Matheus
  • Fuinhas, José Alberto
  • Osmani, Fariba
  • Kazemzadeh, Emad
  • Auza, Anna
  • Alavijeh, Nooshin Karimi
  • Teixeira, Mônica

Abstract

The effect of financial and fiscal incentive policies on the energy performance of residential properties in 19 districts of Portugal from 2014 to 2021 was investigated through econometric modelling. The Ordinary Least Squares (OLS) with the random-effects model was used to realise this empirical approach. The results indicated that the income per capita has a negative impact on housing with higher energy efficiency (certificates A+, A, and B). This result suggests that the income in Portugal is insufficient and impedes investment in highly energy-efficient housing. Consumers choose the less costly lower-efficiency housing certified in categories (C, D, E, and F). The impact of consumer credit is positive for higher-efficiency housing and negative for lower-grade certificates. As for fiscal policies, the effect is also positive for higher-grade certified housing (A+, A, B, and B−).

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  • Koengkan, Matheus & Fuinhas, José Alberto & Osmani, Fariba & Kazemzadeh, Emad & Auza, Anna & Alavijeh, Nooshin Karimi & Teixeira, Mônica, 2022. "Do financial and fiscal incentive policies increase the energy efficiency ratings in residential properties? A piece of empirical evidence from Portugal," Energy, Elsevier, vol. 241(C).
    • Handle: RePEc:eee:energy:v:241:y:2022:i:c:s0360544221031443
    DOI: 10.1016/j.energy.2021.122895
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    Cited by:

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    5. Sara Capelo & Tiago Soares & Isabel Azevedo & Wellington Fonseca & Manuel A. Matos, 2023. "Design of an Energy Policy for the Decarbonisation of Residential and Service Buildings in Northern Portugal," Energies, MDPI, vol. 16(5), pages 1-19, February.
    6. Edoardo Ruffino & Bruno Piga & Alessandro Casasso & Rajandrea Sethi, 2022. "Heat Pumps, Wood Biomass and Fossil Fuel Solutions in the Renovation of Buildings: A Techno-Economic Analysis Applied to Piedmont Region (NW Italy)," Energies, MDPI, vol. 15(7), pages 1-25, March.
    7. Sun, Bo & Li, Mingzhe & Wang, Fan & Xie, Jingdong, 2023. "An incentive mechanism to promote residential renewable energy consumption in China's electricity retail market: A two-level Stackelberg game approach," Energy, Elsevier, vol. 269(C).
    8. Matheus Koengkan & José Alberto Fuinhas & Fernanda Paula Oliveira & Uğur Ursavaş & Natália Moreno, 2023. "Building a Sustainable Future: How Eco-Friendly Homes Are Driving Local Economic Development in Lisbon Metropolitan Area," Energies, MDPI, vol. 16(13), pages 1-34, June.
    9. Matheus Koengkan & José Alberto Fuinhas & Magdalena Radulescu & Emad Kazemzadeh & Nooshin Karimi Alavijeh & Renato Santiago & Mônica Teixeira, 2023. "Assessing the Role of Financial Incentives in Promoting Eco-Friendly Houses in the Lisbon Metropolitan Area—Portugal," Energies, MDPI, vol. 16(4), pages 1-20, February.
    10. Han, Myat Su & Ma, Shuang (Sara) & Wang, Yonggui & Tian, Qinghong, 2023. "Impact of technology-enabled product eco-innovation: Empirical evidence from the Chinese manufacturing industry," Technovation, Elsevier, vol. 128(C).

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