The Value of Energy Efficiency and the Role of Expected Heating Costs
41 Pages Posted: 21 Oct 2016
Date Written: October 11, 2016
The German Energy Savings Act (Energieeinsparverordnung) requires sellers on the housing market to provide detailed information on expected yearly energy consumption per square meter. This paper uses variation in local fuel prices and climate, fuel types, and building ages to analyze the relationship between expected energy cost savings from energy efficient building structure and house prices in a data set of listing prices from all regions of Germany. Results suggest that agents are aware of the investment dimension of energy efficiency improvements, but not all important aspects are taken into account.
Keywords: Energy Efficiency, House Price Capitalization, Climate, Heating Fuel Prices, Information Inefficiency
JEL Classification: R21, R31, Q40
Suggested Citation: Suggested Citation