Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

The impact of energy performance on single‐family home selling prices in Sweden

The impact of energy performance on single‐family home selling prices in Sweden Purpose – This study aims to test whether energy performance effects single‐family home sale prices. It also examines whether recommendations for supposedly cost‐effective energy efficiency measures, by intervention category (construction, installation or operation/control technical measures), are perceived as untapped potential – a real option – that effects sale prices. Design/methodology/approach – The energy performance measurement and dummy variables for three categories of improvement recommendations are included as explanatory variables in a hedonic regression analysis using transaction data and energy performance certificates data for 1,073 observations. Findings – Results indicate that better energy performance effects selling prices positively. Energy efficiency recommendations seem to have an impact on sale price; home buyers seem to require a larger “discount” for more complex types of measures. Research limitations/implications – The sample only includes houses in the Stockholm; so‐called sustainable buildings have not been specifically studied; and the heating source has not been accounted for. Originality/value – The EU energy performance certificates provide new information and measure energy performance more exactly than many earlier (proxy) variables. This is one of the first studies to test the effect of this information, and the first one using Swedish data. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of European Real Estate Research Emerald Publishing

The impact of energy performance on single‐family home selling prices in Sweden

Lovisa Högberg
Journal of European Real Estate Research , Volume 6 (3): 20 – Nov 15, 2013
Download PDF
20 pages

Loading next page...
 
/lp/emerald-publishing/the-impact-of-energy-performance-on-single-family-home-selling-prices-PoJhJNXJBd
Publisher
Emerald Publishing
Copyright
Copyright © 2013 Emerald Group Publishing Limited. All rights reserved.
ISSN
1753-9269
DOI
10.1108/JERER-09-2012-0024
Publisher site
See Article on Publisher Site

Abstract

Purpose – This study aims to test whether energy performance effects single‐family home sale prices. It also examines whether recommendations for supposedly cost‐effective energy efficiency measures, by intervention category (construction, installation or operation/control technical measures), are perceived as untapped potential – a real option – that effects sale prices. Design/methodology/approach – The energy performance measurement and dummy variables for three categories of improvement recommendations are included as explanatory variables in a hedonic regression analysis using transaction data and energy performance certificates data for 1,073 observations. Findings – Results indicate that better energy performance effects selling prices positively. Energy efficiency recommendations seem to have an impact on sale price; home buyers seem to require a larger “discount” for more complex types of measures. Research limitations/implications – The sample only includes houses in the Stockholm; so‐called sustainable buildings have not been specifically studied; and the heating source has not been accounted for. Originality/value – The EU energy performance certificates provide new information and measure energy performance more exactly than many earlier (proxy) variables. This is one of the first studies to test the effect of this information, and the first one using Swedish data.

Journal

Journal of European Real Estate Research – Emerald Publishing

Published: Nov 15, 2013

Keywords: Energy efficiency; Energy performance; Hedonic analysis; Property value; Swedish housing market

References

  • Willingness to pay for energy‐saving measures in residential buildings
    Banfi, S.; Farsi, M.; Filippini, M.; Jakob, M.
  • Modeling the relationship between energy efficiency attributes and house price: the case of detached houses sold in the Australian capital territory in 2005 and 2006
    Berry, S.; Marker, T.; Chevalier, T.
  • Regelsamling för byggande, BBR 2008. Supplement Februari 2009, 9 Energihushållning, BFS 1993:57 med ändringar t.o.m. BFS 2008:20 (Building Regulation Code, Energy)
    Boverket
  • Utvärdering av systemet med energideklarationer” (“Evaluation of the energy performance certificate system”) (Uppdrag nr 12 Uppföljning av energideklarationer enligt regleringsbrev för budgetåret 2009 avseende Boverket. M2008/4791/A)
    Boverket
  • On the economics of energy labels in the housing market
    Brounen, D.; Kok, N.
  • Market barriers to conservation: are implicit discount rates too high?
    Dubin, J.
  • Energistatistik för småhus ES 2011:10 Korrigerad version 2011‐12‐21 (Energy Statistics for One and Two‐Dwelling Buildings in 2010, Corrected Version 2011‐12‐21)
    Energimyndigheten
  • Ditt hus och din uppvärmning (Your House and Your Heating)
    Energimyndigheten
  • Evaluation of energy performance indicators and financial aspects of energy saving techniques in residential real estate
    Entrop, A.G.; Brouwers, H.J.H.; Reinders, A.H.M.E.
  • Directive 2002/91/EC of the European Parliament and of the Council of 16 December 2002 on the Energy Performance of Buildings
    EU Directive 2002/91/EC
  • The value of green labels in the Californian housing market: an economic analysis of the impact of green labeling on the sales price of a home
    Kok, N.; Kahn, M.E.
  • Housing market capitalization of energy efficiency revisited
    Laquatra, J.; Dacquisto, D.J.; Emrath, P.; Laitner, J.A.
  • Owners perception on the adoption of building envelope energy efficiency measures in Swedish detached houses
    Nair, G.; Gustavsson, L.; Mahapatra, K.
  • Evidence of rational market valuations for home energy efficiency
    Nevin, R.; Watson, G.
  • Construction and the appraiser: more evidence of rational market values for home energy efficiency
    Nevin, R.; Bender, C.; Gazan, H.
  • Energy Policies of IEA Countries – Sweden 2008 Review
    OECD/IEA
  • Analysis of the influence of energy performance of buildings on the romanian real‐estate market
    Popescu, D.; Boazu, R.; Bienert, S.; Schützenhofer, C.
  • Methodology for real estate appraisal of green value
    Popescu, D.; Mladin, E.C.; Boazu, R.; Bienert, S.
  • En sammanhållen klimat‐ och energipolitik – Energi
    Prop. 2008/09:163
  • Energideklarationer – få råd för pengarna” (“Energy performance certificates – little advice for the buck”), RiR 2009:06
    Riksrevisionen
  • Hedonic prices and implicit markets: product differentiation in pure competition
    Rosen, S.
  • Skatteverkets allmänna råd om riktvärdeangivelser samt grunderna för taxeringen och värdesättningen av småhusenheter vid 2009 och senare års fastighetstaxeringar (The Swedish National Tax Agency's General Guidance on Base Value Information and the Basis for Tax Assessment and Value Estimation of Small House Units at the 2009 and Onwards Property Tax Assessments)
    SKV A 2008:7
  • Fjärrvärmepriser PM 2012 (District Heating Prices Memo 2012)
    Svensk Fjärrvärme
  • A heteroskedasticity‐consistent covariance matrix estimator and a direct test for heteroskedasticity
    White, H.
  • Stockholm
    Wikipedia
  • Boendet och miljön – Värdepåverkande egenskaper vid prissättning av enfamiljshus med äganderätt (“The dwelling and the environment – value impacting attributes in price determination for single‐family houses with ownership right”)
    Wilhelmsson, M.