Energy Price Shocks and the Demand for Energy-Efficient Housing: Evidence from Russia's Invasion of Ukraine

Nils Braakmann, Bahadir Dursun () and Harry Pickard
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Bahadir Dursun: Newcastle University

No 15959, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: How do private consumers adapt to changes to energy prices, in particular do they invest in energy-saving measures? We study this question in the context of the rapid rise in energy prices caused by the Russian invasion of Ukraine in February 2022 and the demand for energy efficiency in the UK housing market. We find that the housing market barely reacted to a 60% increase in the price of energy. This finding holds in multiple contexts and across various robustness checks. Supplementary survey evidence suggests that people believe the energy price increases are temporary, not permanent.

Keywords: gas prices; energy efficiency; property markets (search for similar items in EconPapers)
JEL-codes: Q35 Q41 Q51 R31 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2023-02
New Economics Papers: this item is included in nep-cis, nep-ene, nep-tra and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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