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The Value of Energy Efficiency and the Role of Expected Heating Costs

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  • Andreas Mense

    (Friedrich-Alexander-Universität Erlangen-Nürnberg)

Abstract

The German Energy Performance of Buildings Directive requires sellers on the housing market to provide detailed information on expected yearly energy consumption per square meter (energy performance, EPS). This paper uses variation in local fuel prices and climate, fuel types, and building ages to analyse the relationship between expected energy cost savings from energy efficient building structure and house prices in a data set of listing prices from all regions of Germany. Results suggest that heating cost considerations are less relevant than previously thought.

Suggested Citation

  • Andreas Mense, 2018. "The Value of Energy Efficiency and the Role of Expected Heating Costs," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 71(3), pages 671-701, November.
    • Handle: RePEc:kap:enreec:v:71:y:2018:i:3:d:10.1007_s10640-017-0179-7
    DOI: 10.1007/s10640-017-0179-7
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    3. Lianne Foti & Avis Devine, 2019. "High Involvement and Ethical Consumption: A Study of the Environmentally Certified Home Purchase Decision," Sustainability, MDPI, vol. 11(19), pages 1-11, September.
    4. Mense, Andreas, 2018. "What is the information value of energy efficiency certificates in buildings?," FAU Discussion Papers in Economics 10/2018, Friedrich-Alexander University Erlangen-Nuremberg, Institute for Economics.
    5. Sahari, Anna, 2021. "Household heterogeneity in valuation of heating energy costs," Working Papers 141, VATT Institute for Economic Research.

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    More about this item

    Keywords

    Climate; Energy efficiency; Heating fuel prices; House price capitalisation;
    All these keywords.

    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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