The Effect of Energy Efficiency Labeling: Bunching and Prices in the Irish Residential Property Market

Marie Hyland (), Anna Alberini () and Sean Lyons
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Anna Alberini: Department of Agricultural and Resource Economics, University of Maryland

Economic Papers from Trinity College Dublin, Economics Department

Abstract: This paper analyses the system of energy performance certificates in place in Ireland. We find that having a system with discrete energy-efficiency thresholds causes bunching among properties just on the more favorable side of the label cut-off points. This indicates that, in the region around the label thresholds, assessors tend to be extra lenient when evaluating the energy performance of dwellings. We examine possible reasons for this finding, including the market returns to energy efficiency using home sales data from the Irish property price register, and conclude that most likely assessors are trying to ingratiate homeowners to get repeat business. We find evidence of a partial disconnect between sellers' expectations and buyers' valuation of properties labeled as more efficient.

Keywords: Residential energy efficiency; Energy Performance Certificates; Bunching (search for similar items in EconPapers)
JEL-codes: Q40 Q48 R21 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2016-03, Revised 2016-08
New Economics Papers: this item is included in nep-ene, nep-eur, nep-reg and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:tcd:tcduee:tep0516

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