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Explaining the variation in the value of building energy efficiency certificates: A quantitative meta-analysis

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  • Ankamah-Yeboah, Isaac
  • Rehdanz, Katrin

Abstract

The built environment has been identified as one of the cost effective platforms for reducing energy demand and greenhouse gas emissions. With policies and the know-how in existence, the real estate sector has already adopted measures such as building codes and energy efficiency labels to drive prices and spur demand with the objective of increasing the demand for energy efficient buildings. Since 2008, many studies have emerged estimating the price premium that is expected to be associated with energy efficient buildings. Evidence from such studies has so far been mixed. We use a meta-regression approach to identify some of the underlying drivers causing the variation. Our results reveal that energy efficiency is highly valued in the sales market and the non-residential sector. We also observed that Europe values energy efficiency over the US possible due to their relative strengths of their energy efficiency policies as revealed on the international energy efficiency rankings. Labels with categorical scales have a weak impact on the value of energy efficiency labels while the effects of regulation by voluntary strategies tend to decline with time, with the effect lasting over a period of thirteen years. These are vital information for policy issues in achieving significant cuts in greenhouse gas emissions.

Suggested Citation

  • Ankamah-Yeboah, Isaac & Rehdanz, Katrin, 2014. "Explaining the variation in the value of building energy efficiency certificates: A quantitative meta-analysis," Kiel Working Papers 1949, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:1949
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    Cited by:

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    2. Monica Billio & Michele Costola & Loriana Pelizzon & Max Riedel, 2022. "Buildings’ Energy Efficiency and the Probability of Mortgage Default: The Dutch Case," The Journal of Real Estate Finance and Economics, Springer, vol. 65(3), pages 419-450, October.
    3. Labandeira, Xavier & Labeaga, José M. & Linares, Pedro & López-Otero, Xiral, 2020. "The impacts of energy efficiency policies: Meta-analysis," Energy Policy, Elsevier, vol. 147(C).
    4. Deller, Timo, 2022. "The Economic Upside of Green Real Estate Investments: Analyzing the Impact of Energy Efficiency on Building Valuation in the Residential Sector," Junior Management Science (JUMS), Junior Management Science e. V., vol. 7(3), pages 802-825.
    5. Markus Hang & Jerome Geyer‐Klingeberg & Andreas Rathgeber & Stefan Stöckl, 2018. "Economic Development Matters: A Meta‐Regression Analysis on the Relation between Environmental Management and Financial Performance," Journal of Industrial Ecology, Yale University, vol. 22(4), pages 720-744, August.

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    More about this item

    Keywords

    energy efficiency premium; meta-analysis; multilevel model; value transfer; valuation;
    All these keywords.

    JEL classification:

    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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