Abstract
This work examines the implementation of energy labelling by the residential real estate sector. First, it considers the interest by real estate sellers in not publishing energy certification information, and then, it quantifies the impact of the housing’s energy certification on the asking price. The results are compared with those obtained from other studies conducted in distinct European countries. The study’s final sample was collected, including information from 52,939 multi-family homes placed on the real estate market in the province of Alicante (Spain). One-way analysis of variance (ANOVA) was used, as well as an ordinary least squares regression model. This study highlights the fact that, in the current market, owners and sellers have no incentive to reveal the energy certification, since this permits them to sell homes with low energy ratings at prices similar to those of more energy efficient homes. In addition, it was found that homes with better energy ratings (letters A and B) are not sold at higher prices than homes with other rating letters, unlike the case of other European countries that were examined.
Highlights
High energy consumption by buildings is a global issue, and the implementation of policies promoting energy performance improvement measures is challenging
These directives require the publication of an energy performance certificate (EPC), to be included in the documentation supplied by owners to purchasers or renters
This work seeks to examine the effect of energy qualifications on the asking price of housing located in the Alicante (Spain) real estate market
Summary
High energy consumption by buildings is a global issue, and the implementation of policies promoting energy performance improvement measures is challenging. The European directives [2,3] establish a mandatory certification system, the so-called “ABCDEFG qualification”, which rates buildings based on their energy efficiency, similar to the classification used for household appliances. These directives require the publication of an energy performance certificate (EPC), to be included in the documentation supplied by owners to purchasers or renters. These policies are an attempt to offer increased transparency and information to consumers, to assist in decision-making related to property purchase or rental.
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