IDEAS home Printed from https://ideas.repec.org/a/sae/enejou/v44y2023i1p33-54.html
   My bibliography  Save this article

Energy Efficiency Premium Issues and Revealing the Pure Label Effect

Author

Listed:
  • Aras Khazal
  • Ole Jakob Sønstebø

Abstract

Following the European Union’s implementation of Energy Performance Certificates (EPCs) for buildings, the capitalization of energy efficiency in transaction prices and rents has been subject to much research. This paper uses different identification strategies for the Norwegian residential sales (N = 750,000) and rental (N = 670,000) markets to highlight the endogeneity and methodological limitations associated with assessing the price effects of energy efficiency and the signaling effect of label adoption. We find that the valuation of energy efficiency is subject to unobserved location and quality bias, that labeling has immediate, short-run, and long-run price effects and that different effects are observed in different submarkets. We provide evidence that sample selection issues related to location and time, with methodological and data limitations, are essential factors that must be considered when assessing the effects of the EPC implementation.

Suggested Citation

  • Aras Khazal & Ole Jakob Sønstebø, 2023. "Energy Efficiency Premium Issues and Revealing the Pure Label Effect," The Energy Journal, , vol. 44(1), pages 33-54, January.
    • Handle: RePEc:sae:enejou:v:44:y:2023:i:1:p:33-54
    DOI: 10.5547/01956574.44.1.akha
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.5547/01956574.44.1.akha
    Download Restriction: no
    File URL: https://libkey.io/10.5547/01956574.44.1.akha?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Marie Hyland & Anna Alberini & Se n Lyons, 2016. "The Effect of Energy Efficiency Labeling: Bunching and Prices in the Irish Residential Property Market," Trinity Economics Papers tep0516, Trinity College Dublin, Department of Economics, revised Aug 2016.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rodolfo Sejas-Portillo & David Comerford & Mirko Moro & Till Stowasser, 2020. "Limited Attention in the Housing Market: Threshold Effects of Energy-Performance Certificates on Property Prices and Energy-Efficiency Investments," CESifo Working Paper Series 8669, CESifo.
    2. Comerford, David A. & Lange, Ian & Moro, Mirko, 2018. "Proof of concept that requiring energy labels for dwellings can induce retrofitting," Energy Economics, Elsevier, vol. 69(C), pages 204-212.
    3. Atasoy, Ayse Tugba, 2020. "Behavioral responses of green builders to discontinuous certification schemes," Resource and Energy Economics, Elsevier, vol. 60(C).
    4. Collins, Matthew & Curtis, John, 2018. "Bunching of residential building energy performance certificates at threshold values," Applied Energy, Elsevier, vol. 211(C), pages 662-676.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:enejou:v:44:y:2023:i:1:p:33-54. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.