Valuing Energy Performance Certificates in the Portuguese Residential

Ana Ramos (), Alicia Pérez-Alonso and Susana Silva
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Ana Ramos: Rede (Universidade de Vigo) and Economics for Energy
Susana Silva: Universidade Lusíada, CefUP and Economics for Energy

Working Papers from Economics for Energy

Abstract: Informational instruments such as energy performance certificates have been widely adopted by many governments during the last decade to promote energy efficiency in the residential sector. The objective of these instruments is to reduce the informational and behavioural failures that avoid consumers from taking efficient decisions regarding dwelling energy efficiency. The European Commission approved in 2012 the Energy Performance of Buildings Directive, which states that a certificate must be made available to buyers or tenants in the moment the dwelling is sold or rented out. Despite the rapid diffusion and interest this type of instruments have raised, little is known about its effectiveness. We provide the first analysis on consumersÕ willingness to pay for energy performance certificates in a Southern European Country: Portugal. Portugal is an interesting case study because this Directive is fully and properly implemented, and the level of consumerÕs awareness is high. We construct a database that contains a large number of dwelling attributes, including energy efficiency characteristics, such as heating or air conditioning systems, gas or solar energy sources. These characteristics allow us to isolate the effect of the certificate on the price. We use the two-step Heckman procedure to estimate a hedonic price function for dwellings. Our results show that Portuguese consumers have a high valuation for high rated dwellings.

Keywords: Keywords: Energy Efficiency; Incomplete Information; Energy Performance Certificate; Residential Sector; Hedonic Price Model; Portugal. (search for similar items in EconPapers)
JEL-codes: C25 Q41 Q58 R21 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2015-11
New Economics Papers: this item is included in nep-ene, nep-eur and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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