Tearing down the information barrier: the price impacts of energy efficiency ratings for buildings in the German rental market
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Publication Date
2019Journal Title
Energy Research and Social Science
ISSN
2214-6296
Publisher
Elsevier BV
Volume
47
Pages
177-191
Type
Article
Metadata
Show full item recordCitation
Cajias, M., Fuerst, F., & Bienert, S. (2019). Tearing down the information barrier: the price impacts of energy efficiency ratings for buildings in the German rental market. Energy Research and Social Science, 47 177-191. https://doi.org/10.1016/j.erss.2018.08.014
Abstract
Improving the energy efficiency levels of the housing stock is of particular concern in the private rentalmarket where capital costs and utility cost savings are not shared in equal measure by landlords and tenants.
This problem is particularly pronounced in the German housing market with its predominance of rented
accommodation over owner occupancy. The present study is the largest to date to investigate the effect of
energy efficiency ratings on rental values. Using a semiparametric hedonic model and an empirical sample
of nearly 760 thousand observations across 403 local markets in Germany with full hedonic characteristics,
we find evidence that energy-efficient rental units are rented at a premium. However, this effect is not
confirmed for the largest metropolitan housing markets. In a second step, a survival hazard model is
estimated to study the impact of the energy ratings on time-on-market. It is found that energy inefficient
dwelling have longer marketing periods and are hence less liquid than their more energy efficient
counterparts.
Sponsorship
European Commission Horizon 2020 Grant H2020-EE-2014-2015
Funder references
European Commission Horizon 2020 (H2020) Societal Challenges (649656)
Identifiers
External DOI: https://doi.org/10.1016/j.erss.2018.08.014
This record's URL: https://www.repository.cam.ac.uk/handle/1810/283123
Rights
Attribution-NonCommercial-NoDerivatives 4.0 International
Licence URL: http://creativecommons.org/licenses/by-nc-nd/4.0/
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