Photovoltaic Systems and Housing Prices: The Relevance of View

Roland Füss, Kathleen Kürschner Rauck and Alois Weigand
Additional contact information
Roland Füss: University of St. Gallen, NTNU Business School, and Swiss Finance Institute
Kathleen Kürschner Rauck: University of St. Gallen; Swiss Finance Institute

No 23-100, Swiss Finance Institute Research Paper Series from Swiss Finance Institute

Abstract: We study how photovoltaic (PV) systems externally affect the prices of owner occupied houses and rents of residential dwellings. By creating a three-dimensional topographical model of Switzerland, we model each building’s view at surrounding PV installations and merge this data with housing price observations. In our hedonic difference-in-differences regressions, we provide evidence of how this view (impaired or unimpaired) on a PV system is associated with lower residential rents. This effect is stronger for the view at multiple PV systems rather than at a single one as well as in situations where seeing is more likely. However, price penalties are attenuated if rental dwellings have their own PV system or if neighboring properties have a view at comparably large PV systems which may benefit surrounding tenants in terms of electricity provision. Furthermore, by using municipal voting results on the Swiss Energy Act 2017 and the Swiss CO2 Act in 2021, we show how the attitude towards sustainability is driving the external effects of PV systems on rents. In contrast, we cannot document significant impacts of view on prices for owner-occupied housing.

Keywords: Residential Real Estate; Rents; House Prices; Photovoltaic System; View (search for similar items in EconPapers)
JEL-codes: Q40 R11 R32 (search for similar items in EconPapers)
Pages: 46 pages
Date: 2023-10
New Economics Papers: this item is included in nep-ene, nep-env, nep-eur and nep-ure
References: Add references at CitEc
Citations:

Downloads: (external link)
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4618784 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:chf:rpseri:rp23100

Access Statistics for this paper

More papers in Swiss Finance Institute Research Paper Series from Swiss Finance Institute Contact information at EDIRC.
Bibliographic data for series maintained by Ridima Mittal ().