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Valuing Energy Performance Certificates in the Portuguese Residential

Author

Listed:
  • Ana Ramos

    (Rede (Universidade de Vigo) and Economics for Energy)

  • Alicia Pérez-Alonso

    (Universidade de Vigo and Economics for Energy)

  • Susana Silva

    (Universidade Lusíada, CefUP and Economics for Energy)

Abstract

Informational instruments such as energy performance certificates have been widely adopted by many governments during the last decade to promote energy efficiency in the residential sector. The objective of these instruments is to reduce the informational and behavioural failures that avoid consumers from taking efficient decisions regarding dwelling energy efficiency. The European Commission approved in 2012 the Energy Performance of Buildings Directive, which states that a certificate must be made available to buyers or tenants in the moment the dwelling is sold or rented out. Despite the rapid diffusion and interest this type of instruments have raised, little is known about its effectiveness. We provide the first analysis on consumersÕ willingness to pay for energy performance certificates in a Southern European Country: Portugal. Portugal is an interesting case study because this Directive is fully and properly implemented, and the level of consumerÕs awareness is high. We construct a database that contains a large number of dwelling attributes, including energy efficiency characteristics, such as heating or air conditioning systems, gas or solar energy sources. These characteristics allow us to isolate the effect of the certificate on the price. We use the two-step Heckman procedure to estimate a hedonic price function for dwellings. Our results show that Portuguese consumers have a high valuation for high rated dwellings.

Suggested Citation

  • Ana Ramos & Alicia Pérez-Alonso & Susana Silva, 2015. "Valuing Energy Performance Certificates in the Portuguese Residential," Working Papers 02-2015, Economics for Energy.
    • Handle: RePEc:efe:wpaper:02-2015
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    References listed on IDEAS

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    Cited by:

    1. Taruttis, Lisa & Weber, Christoph, 2022. "Estimating the impact of energy efficiency on housing prices in Germany: Does regional disparity matter?," Energy Economics, Elsevier, vol. 105(C).
    2. Taruttis, Lisa & Weber, Christoph, 2020. "Estimating the impact of energy efficiency on housing prices in Germany: Does regional disparity matter?," VfS Annual Conference 2020 (Virtual Conference): Gender Economics 224582, Verein für Socialpolitik / German Economic Association.
    3. Cespedes-Lopez, Maria-Francisca & Perez-Sanchez, V. Raul & Mora-Garcia, Raul-Tomas, 2022. "The influence of housing location on energy ratings price premium in Alicante, Spain," Ecological Economics, Elsevier, vol. 201(C).
    4. Florian Fizaine & Pierre Voye & Catherine Baumont, 2018. "Does the Literature Support a High Willingness to Pay for Green Label Buildings? An Answer with Treatment of Publication Bias," Revue d'économie politique, Dalloz, vol. 128(5), pages 1013-1046.
    5. Rui Evangelista & Esmeralda A. Ramalho & João Andrade e Silva, 2019. "On the use of Hedonic Regression Models to Measure the Effect of Energy Efficiency on Residential Property Transaction Prices: Evidence for Portugal and Selected Data Issues," Working Papers REM 2019/64, ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa.
    6. Florian Fizaine Fizaine & Pierre Voye & Catherine Baumont, 2018. "Les études hédoniques soutiennent-elles une valeur verte élevée dans le bâtiment ? Une réponse par la méta-analyse," Post-Print halshs-01957447, HAL.
    7. Lisa Taruttis & Christoph Weber, 2020. "Estimating the impact of energy efficiency on housing prices in Germany: Does regional disparity matter?," EWL Working Papers 2004, University of Duisburg-Essen, Chair for Management Science and Energy Economics.

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    More about this item

    Keywords

    Keywords: Energy Efficiency; Incomplete Information; Energy Performance Certificate; Residential Sector; Hedonic Price Model; Portugal.;
    All these keywords.

    JEL classification:

    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities

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