Stranded houses? The price effect of a minimum energy efficiency standard

Konstantinos Ferentinos, Alex Gibberd and Benjamin Guin

Energy Economics, 2023, vol. 120, issue C

Abstract: Climate policies aimed at reducing greenhouse gas emissions can lead to decreases in the values of assets, risking them to become “stranded”. We study the price effects of the introduction of a specific climate policy, a minimum energy efficiency standard, in the housing market. Leveraging a unique data set of the population of all residential house transactions in England and Wales, we show that prices of energy-inefficient properties affected by this policy decreased on average by about £5k to £9k relative to efficient ones. We interpret this evidence as being consistent with semi-strong market efficiency in the housing market.

Keywords: Climate policy; House prices; Energy efficiency (search for similar items in EconPapers)
JEL-codes: C54 Q54 Q58 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:120:y:2023:i:c:s0140988323000531

DOI: 10.1016/j.eneco.2023.106555

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