EPC Green Premium in Two Different European Climate Zones: A Comparative Study between Barcelona and Turin

Dell’anna Dell’Anna,Marmolejo-Duarte Marmolejo-Duarte,Chen Chen,Bravi Bravi,Bottero Bottero

doi:10.3390/su11205605

Dell’anna Dell’Anna, Marmolejo-Duarte Marmolejo-Duarte + Show 3 more

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https://doi.org/10.3390/su11205605

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Abstract

Energy performance certificates (EPCs) are important tools aimed at improving buildings’ energy performance. They play a central role in the context of the Energy Performance of Buildings Directive (EPBD) which asks member states (MS) to take the necessary measures to establish a complete certification system. In this study, an application of the hedonic price method (HPM) assessing the effect of energy labels derived from the EPC on real estate market value is presented. The estimation methodology was applied to two European cities characterized by different climate conditions. The analysis was based on two datasets of listing prices referring to multi-family residential markets in Turin (Italy) and Barcelona (Spain). Four models for each dataset were applied to capture the marginal price of green attributes, but also to control for the spatial autocorrelation among values. The findings showed how the EPC has been applied in the two countries and how it has influenced the real estate market. Turin’s buyers pay more attention to the EPC label, while in Barcelona, they value much more single characteristics, such as air conditioning and a swimming pool, considered popular attributes among contemporary buildings in this climate zone. From the results, it is possible to deduce that the implementation of the EPC schemes is still irregular in EU countries and must be strengthened through a standardized rating model.

Highlights

In 2002, the European Union (EU) introduced the Energy Performance of Buildings Directive (EPBD) in order to promote energy efficiency in the building sector [1]
The standard hedonic regression approach was employed to investigate the impact of Energy performance certificates (EPCs) on listing prices of properties located in both cities
This paper highlighted the difficulties in comparing the impacts of the EPC on real estate values in different regions of the EU, even though that the Directive wished to establish a standard valid rule

Summary

Introduction

In 2002, the European Union (EU) introduced the Energy Performance of Buildings Directive (EPBD) in order to promote energy efficiency in the building sector [1]. The first recast of EPBD, Directive 2010/31/EU (EPBD 2010/31/EU), promotes the improvement of buildings’ energy performance within the EU and introduces a new standard for new buildings built by 2020: the nearly-zero energy building (nZEB or NZEB) [2]. In 2015, during the 21st Conference of the Parties of the UNFCCC (United Nations Framework Convention on Climate Change) in Paris (COP21), new visions aimed at decarbonizing the building sector by 2050 were set and accepted by the latest European Directive [5]. With the Directive 2018/844/EU, the European Union shifted attention toward real estate by proposing to MS a census of building stock, both public and private, and a program to reach the main goals [6]

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