Investments that Make our Homes Greener: The Role of Regulation

77 Pages Posted: 17 Jan 2022 Last revised: 23 Feb 2024

See all articles by Nuno Clara

Nuno Clara

London Business School; Duke University - Finance

Joao F. Cocco

London Business School; Centre for Economic Policy Research (CEPR)

S Lakshmi Naaraayanan

London Business School

Varun Sharma

Kelley School of Business, Indiana University; Nanyang Business School; London Business School

Date Written: January 14, 2022

Abstract

The operation of residential buildings (our homes) is responsible for roughly 22% of the global energy consumption and 17% of the CO2 emissions. We study the effects of a regulatory intervention aiming to reduce carbon emissions by requiring privately rented properties to satisfy minimum energy efficiency standards. The regulation triggered significant investments in the rental sector. However, the environmental gains were smaller, limited by the use of more polluting energy sources. Regulatory interventions that target carbon emissions directly may be more effective in tackling the climate challenge.

Keywords: Real Estate, Household Finance, Energy Efficiency, Climate Change.

JEL Classification: R1, G5, Q4, Q5

Suggested Citation

Clara, Nuno and Clara, Nuno and Cocco, João F. and Naaraayanan, S Lakshmi and Sharma, Varun, Investments that Make our Homes Greener: The Role of Regulation (January 14, 2022). Available at SSRN: https://ssrn.com/abstract=4009054 or http://dx.doi.org/10.2139/ssrn.4009054

Nuno Clara

Duke University - Finance ( email )

Durham, NC 27708-0120
United States

HOME PAGE: http://www.nunoclara.com

London Business School ( email )

Sussex Place
Regent's Park
London, London NW1 4SA
United Kingdom

João F. Cocco

London Business School ( email )

Sussex Place
Regent's Park
London, London NW1 4SA
United Kingdom
+020 7262-5050 (Phone)
+020 7724-3317 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

S Lakshmi Naaraayanan

London Business School ( email )

Sussex Place
Regent's Park
London NW1 4SA
United Kingdom

HOME PAGE: http://www.lakshmin.com

Varun Sharma (Contact Author)

Kelley School of Business, Indiana University ( email )

1275 E 10th St
Bloomington, IN 47405
United States
8128377912 (Phone)
47405 (Fax)

HOME PAGE: http://www.sharmav.com

Nanyang Business School ( email )

48 Nanyang Avenue
Singapore, Singapore 639818
Singapore

HOME PAGE: http://dr.ntu.edu.sg/cris/rp/rp02032

London Business School ( email )

Sussex Place
Regent's Park
London, London NW1 4SA
United Kingdom

HOME PAGE: http://www.sharmav.com

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
596
Abstract Views
4,555
Rank
84,046
PlumX Metrics