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

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  • Andreas Mense

Abstract

The German Energy Savings Act (Energieeinsparverordnung) requires sellers on the housing market to provide detailed information on expected yearly energy consumption per square meter. This paper uses variation of energy use and heating costs from local fuel prices, climatic conditions, and fuel types to analyze 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. Furthermore, the role of building age for the value of energy efficiency is considered. Results suggest that agents are aware of the investment dimension of energy efficiency improvements, but not all important aspects are taken into account.

Suggested Citation

  • Andreas Mense, 2016. "The Value of Energy Efficiency and the Role of Expected Heating Costs," ERES eres2016_153, European Real Estate Society (ERES).
    • Handle: RePEc:arz:wpaper:eres2016_153
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    Cited by:

    1. Sahari, Anna, 2021. "Household heterogeneity in valuation of heating energy costs," Working Papers 141, VATT Institute for Economic Research.
    2. 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.
    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. Bengali, Leila, 2022. "Assessing evidence for inattention to the costs of homeownership," Journal of Housing Economics, Elsevier, vol. 58(PB).

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    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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