The information value of energy labels: Evidence from the Dutch residential housing market

Lu Zhang, Lennart Stangenberg and Sjors van Wickeren
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Sjors van Wickeren: EUR

No 413, CPB Discussion Paper from CPB Netherlands Bureau for Economic Policy Analysis

Abstract: Do energy labels contain extra information that buyers cannot observe themselves? Which labeling scheme is more effective: a voluntary or a mandatory one? In this paper we examine the information value of voluntary and mandatory energy labels using administrative data on all transactions in the Dutch residential housing market. Employing a combination of hedonic price models, matching and a sharp Regression Discontinuity Design (RDD), we show that voluntary labels introduced in the period 2008-2014 contain limited information value. The information value of mandatory labels that are adopted since 2015 is less clear-cut. We observe that better-labeled dwellings were transacted with significant price premiums before obtaining labels. This implies that at least part of the premiums cannot be attributed to mandatory labels.

JEL-codes: R38 R58 (search for similar items in EconPapers)
Date: 2020-05
New Economics Papers: this item is included in nep-ene, nep-isf, nep-reg and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:cpb:discus:413

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