Real Estate Price Formation: Energy Performance Certificates and the Role of Real Estate Agents
Improving energy efficiency in buildings is a major priority of industrialized countries. By eliminating market asymmetries, Energy Performance Certificates (EPCs) is a potential policy instrument when it comes to promoting energy efficiency of real estate. Real estate agents have an important role...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Taylor & Francis Group
2021-01-01
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| Series: | Journal of Sustainable Real Estate |
| Subjects: | |
| Online Access: | http://dx.doi.org/10.1080/19498276.2021.2006875 |
| _version_ | 1797676941483966464 |
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| author | Jon Olaf Olaussen Are Oust Jan Tore Solstad |
| author_facet | Jon Olaf Olaussen Are Oust Jan Tore Solstad |
| author_sort | Jon Olaf Olaussen |
| collection | DOAJ |
| description | Improving energy efficiency in buildings is a major priority of industrialized countries. By eliminating market asymmetries, Energy Performance Certificates (EPCs) is a potential policy instrument when it comes to promoting energy efficiency of real estate. Real estate agents have an important role in providing information about dwellings for sale on the market. The aim of this paper is to study whether the introduction of EPCs changes the asking price setting of real estate agents. We take advantage of the fact that the introduction of a mandatory energy certification system represents a quasi-natural experiment, where we have data on house price and asking price. Based on the analysis, both of a hedonic model and a fixed effect model, we provide evidence that the implementation of EPCs did not affect the price setting of real estate agents. This indicates that real estate agents either disregard EPCs as providers of new information or believe that the market is indifferent to this kind of information. Our results also indicate that there are large similarities between the effects of energy labels on the asking prices and the transaction prices. |
| first_indexed | 2024-03-11T22:37:43Z |
| format | Article |
| id | doaj.art-35baf49699c34c2fb10c9a60dfc4cc55 |
| institution | Directory Open Access Journal |
| issn | 1949-8276 1949-8284 |
| language | English |
| last_indexed | 2024-03-11T22:37:43Z |
| publishDate | 2021-01-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Journal of Sustainable Real Estate |
| spelling | doaj.art-35baf49699c34c2fb10c9a60dfc4cc552023-09-22T10:55:13ZengTaylor & Francis GroupJournal of Sustainable Real Estate1949-82761949-82842021-01-0113111110.1080/19498276.2021.20068752006875Real Estate Price Formation: Energy Performance Certificates and the Role of Real Estate AgentsJon Olaf Olaussen0Are Oust1Jan Tore Solstad2NTNU Business School, NTNUNTNU Business School, NTNUNTNU Business School, NTNUImproving energy efficiency in buildings is a major priority of industrialized countries. By eliminating market asymmetries, Energy Performance Certificates (EPCs) is a potential policy instrument when it comes to promoting energy efficiency of real estate. Real estate agents have an important role in providing information about dwellings for sale on the market. The aim of this paper is to study whether the introduction of EPCs changes the asking price setting of real estate agents. We take advantage of the fact that the introduction of a mandatory energy certification system represents a quasi-natural experiment, where we have data on house price and asking price. Based on the analysis, both of a hedonic model and a fixed effect model, we provide evidence that the implementation of EPCs did not affect the price setting of real estate agents. This indicates that real estate agents either disregard EPCs as providers of new information or believe that the market is indifferent to this kind of information. Our results also indicate that there are large similarities between the effects of energy labels on the asking prices and the transaction prices.http://dx.doi.org/10.1080/19498276.2021.2006875energy performance certificatesenergy savingsepc impactreal estate agentssustainable housing policy |
| spellingShingle | Jon Olaf Olaussen Are Oust Jan Tore Solstad Real Estate Price Formation: Energy Performance Certificates and the Role of Real Estate Agents Journal of Sustainable Real Estate energy performance certificates energy savings epc impact real estate agents sustainable housing policy |
| title | Real Estate Price Formation: Energy Performance Certificates and the Role of Real Estate Agents |
| title_full | Real Estate Price Formation: Energy Performance Certificates and the Role of Real Estate Agents |
| title_fullStr | Real Estate Price Formation: Energy Performance Certificates and the Role of Real Estate Agents |
| title_full_unstemmed | Real Estate Price Formation: Energy Performance Certificates and the Role of Real Estate Agents |
| title_short | Real Estate Price Formation: Energy Performance Certificates and the Role of Real Estate Agents |
| title_sort | real estate price formation energy performance certificates and the role of real estate agents |
| topic | energy performance certificates energy savings epc impact real estate agents sustainable housing policy |
| url | http://dx.doi.org/10.1080/19498276.2021.2006875 |
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