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EPC Labels and Building Features: Spatial Implications over Housing Prices

Author

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  • Alice Barreca

    (Architecture and Design Department, Politecnico di Torino, 10125 Turin, Italy)

  • Elena Fregonara

    (Architecture and Design Department, Politecnico di Torino, 10125 Turin, Italy)

  • Diana Rolando

    (Architecture and Design Department, Politecnico di Torino, 10125 Turin, Italy)

Abstract

The influence of building or dwelling energy performance on the real estate market dynamics and pricing processes is deeply explored, due to the fact that energy efficiency improvement is one of the fundamental reasons for retrofitting the existing housing stock. Nevertheless, the joint effect produced by the building energy performance and the architectural, typological, and physical-technical attributes seems poorly studied. Thus, the aim of this work is to investigate the influence of both energy performance and diverse features on property prices, by performing spatial analyses on a sample of housing properties listed on Turin’s real estate market and on different sub-samples. In particular, Exploratory Spatial Data Analyses (ESDA) statistics, standard hedonic price models (Ordinary Least Squares—OLS) and Spatial Error Models (SEM) are firstly applied on the whole data sample, and then on three different sub-samples: two territorial clusters and a sub-sample representative of the most energy inefficient buildings constructed between 1946 and 1990. Results demonstrate that Energy Performance Certificate (EPC) labels are gaining power in influencing price variations, contrary to the empirical evidence that emerged in some previous studies. Furthermore, the presence of the spatial effects reveals that the impact of energy attributes changes in different sub-markets and thus has to be spatially analysed.

Suggested Citation

  • Alice Barreca & Elena Fregonara & Diana Rolando, 2021. "EPC Labels and Building Features: Spatial Implications over Housing Prices," Sustainability, MDPI, vol. 13(5), pages 1-21, March.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:5:p:2838-:d:511517
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    References listed on IDEAS

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    2. Elena Fregonara & Diego Giuseppe Ferrando & Jean-Marc Tulliani, 2022. "Sustainable Public Procurement in the Building Construction Sector," Sustainability, MDPI, vol. 14(18), pages 1-23, September.
    3. Matheus Koengkan & Nuno Silva & José Alberto Fuinhas, 2023. "Assessing Energy Performance Certificates for Buildings: A Fuzzy Set Qualitative Comparative Analysis (fsQCA) of Portuguese Municipalities," Energies, MDPI, vol. 16(7), pages 1-30, April.
    4. Ou, Yunbei & Bailey, Nick & McArthur, David Philip & Zhao, Qunshan, 2024. "The Price Premium of Residential Energy Performance Certificates: A Scoping Review of the European Literature," OSF Preprints bm9xk, Center for Open Science.
    5. Domenico Enrico Massimo & Vincenzo Del Giudice & Alessandro Malerba & Carlo Bernardo & Mariangela Musolino & Pierfrancesco De Paola, 2021. "Valuation of Ecological Retrofitting Technology in Existing Buildings: A Real-World Case Study," Sustainability, MDPI, vol. 13(13), pages 1-35, June.
    6. Alice Barreca & Rocco Curto & Giorgia Malavasi & Diana Rolando, 2022. "Energy Retrofitting for the Modern Heritage Enhancement in Weak Real Estate Markets: The Olivetti Housing Stock in Ivrea," Sustainability, MDPI, vol. 14(6), pages 1-24, March.
    7. Alice Barreca, 2022. "Architectural Quality and the Housing Market: Values of the Late Twentieth Century Built Heritage," Sustainability, MDPI, vol. 14(5), pages 1-24, February.

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