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Uncovering the price effect of energy performance certificate ratings when controlling for residential quality(Article)(Open Access)
- aDepartment of Architectural Technology (TA), Centre of Land Policy and Valuations (CPSV), Barcelona School of Architecture (ETSAB), Technical University of Catalonia (UPC), Spain
- bCollege of Civil Engineering and Architecture, Jiaxing University, China
Abstract
In the last decade, market-mediated financial incentives for energy-efficient construction drawn from information policy, including energy performance certificates (EPC), have been intensively researched. While hedonic-based research seems to confirm a positive correlation between residential prices and EPC ratings, opinion-based studies have found that these ratings have a negligible effect on price formation. This paper explores whether insufficient control of non-energy-related architectural attributes in hedonic specifications is responsible for such a divergence. To achieve this, a case-by-case quality assessment is performed for a sample of listed apartments in Barcelona. Then, architectural assessment is introduced as a control in the context of hedonic analysis. The results suggest that EPC ratings show a positive correlation with prices (1.8% price increase for each EPC increment) only when location, general architectural attributes, and basic quality attributes are controlled. Conversely, when architectural quality is thoroughly controlled, such a correlation disappears. However, EPC rating remains as a price driver (7.5% price increase for A/B/C ratings) for the upper tier of apartments in central and affluent zones. Such findings have relevant implications for developers and energy policy. © 2022 Elsevier Ltd
Indexed keywords
| Engineering controlled terms: | Apartment housesCostsQuality control |
|---|---|
| Engineering uncontrolled terms | Architectural attributesBarcelonaEnergy performanceEnergy performance certificateFinancial incentivesHedonic pricesPositive correlationsPrice effectPrice increaseResidential building |
| Engineering main heading: | Energy efficiency |
Funding details
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1
The authors would like to thank the peer reviewers for the constructive criticism that was received also to the eight recently graduated master students in real estate valuation for their assistance in the visual inspection of properties. As well as to Rolando Biere and Marc González for their assistance. Finally, the authors wish to thank Habitaclia for allowing to use the data set analysed in this paper. This study was supported by the EnerValor2 project ref. PID2019-104561RB-I00 (MINCIU).
- ISSN: 13640321
- CODEN: RSERF
- Source Type: Journal
- Original language: English
- DOI: 10.1016/j.rser.2022.112662
- Document Type: Article
- Publisher: Elsevier Ltd
Chen, A.; College of Civil Engineering and Architecture, Jiaxing University, China;
© Copyright 2022 Elsevier B.V., All rights reserved.