Abstract
The residential sector is a significant source of carbon dioxide emissions. Improving the energy efficiency of the housing stock can reduce carbon emissions and increase property values. In this paper, we examine whether residential energy efficiency improvements are capitalized into home prices in Anchorage, Alaska. The impact of a residential energy efficiency program on single-family house prices is estimated using both a hedonic pricing framework and a difference-in- differences estimator. The results indicate that participating homes sell for a premium of 4.2% compared to similar properties that did not participate in the program.
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