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dc.contributor.authorAdan, Hassanen
dc.contributor.authorFuerst, Franzen
dc.date.accessioned2015-12-22T10:20:33Z
dc.date.available2015-12-22T10:20:33Z
dc.date.issued2015-11-01en
dc.identifier.citationAdan & Fuerat. Smart and Sustainable Built Environment (2015) Vol. 4 Issue 3, pp. 251-267. doi: 10.1108/SASBE-03-2013-0016 doi:en
dc.identifier.issn2046-6099
dc.identifier.urihttps://www.repository.cam.ac.uk/handle/1810/253086
dc.description.abstractPurpose - Improving the energy efficiency of the existing residential building stock has been identified as a key policy aim in many countries. This study reviews the extant literature on investment decisions in domestic energy efficiency and presents a model that is both grounded in microeconomic theory and empirically tractable. Design/methodology/approach – This study develops a modified and extended version of an existing microeconomic model to embed the retrofit investment decision in a residential property market context, taking into account tenants’ willingness to pay and cost-reducing synergies. A simple empirical test of the link between energy efficiency measures and housing market dynamics is then conducted. Findings - The empirical data analysis for England indicates that where house prices are low, energy efficiency measures tend to increase the value of a house more in relative terms compared to higher-priced regions. Secondly, where housing markets are tight, landlords and sellers will be successful even without investing in energy efficiency measures. Thirdly, where wages and incomes are low, the potential gains from energy savings make up a larger proportion of those incomes compared to more affluent regions. This, in turn, acts as a further incentive for an energy retrofit. Finally, the UK government has been operating a subsidy scheme which allows all households below a certain income threshold to have certain energy efficiency measures carried out for free. In regions, where a larger proportion of households are eligible for these subsidies, we also expect a larger uptake. Originality/value - While the financial metrics of retrofit measures are by now well understood, most of the existing studies tend to view these investments in isolation, not as part of a larger bundle of considerations by landlords and owners of how energy retrofits might influence a property’s rent, price and appreciation rate. In this paper, we argue that establishing this link is crucial for a better understanding of the retrofit investment decision.
dc.description.sponsorshipFranz Fuerst acknowledges the continuous support of his research by the Cambridge University Land Society (CULS).
dc.languageEnglishen
dc.language.isoenen
dc.publisherEmerald
dc.subjectenergy efficiencyen
dc.subjectinvestment decisionen
dc.subjectenergy efficiency gapen
dc.subjectenergy retrofit investmentsen
dc.subjectmicroeconomic modellingen
dc.subjectrental marketen
dc.titleModelling energy retrofit investments in the UK housing market: A microeconomic approachen
dc.typeArticle
dc.description.versionThis is the author accepted manuscript. The final version is available from Emerald via http://dx.doi.org/10.1108/SASBE-03-2013-0016en
prism.endingPage267
prism.publicationDate2015en
prism.publicationNameSmart and Sustainable Built Environmenten
prism.startingPage251
prism.volume4en
rioxxterms.versionofrecord10.1108/SASBE-03-2013-0016en
rioxxterms.licenseref.urihttp://www.rioxx.net/licenses/all-rights-reserveden
rioxxterms.licenseref.startdate2015-11-01en
dc.contributor.orcidFuerst, Franz [0000-0001-5317-1469]
dc.identifier.eissn2046-6102
rioxxterms.typeJournal Article/Reviewen
rioxxterms.freetoread.startdate2016-11-01


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