Better energy cost information changes household property investment decisions: Evidence from a nationwide experiment

James Carroll, Eleanor Denny, Ronan Lyons () and Ivan Petrov

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: With buildings accounting for roughly 40 % of energy consumption in the US and Europe, energy efficiency upgrades will be central in meeting climate targets. Using a nationwide controlled field experiment, we find that the inclusion of property-specific energy cost labels within property advertisements increases energy efficiency premiums. We also show that more energy efficient properties sell faster and, for the first time, that energy cost labels shortened time-to-sell. While a major departure from existing property labelling policy, these results suggest that framing property energy efficiency according to their cost implications, rather than in energy units, increases the demand for energy efficiency.

Keywords: energy efficiency; energy policy; field experiment; framing; housing demand; imperfect information (search for similar items in EconPapers)
JEL-codes: D83 D91 Q41 Q48 R21 (search for similar items in EconPapers)
Date: 2024-11-30
New Economics Papers: this item is included in nep-ene, nep-env, nep-exp and nep-ure
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Published in Energy Economics, 30, November, 2024, 139. ISSN: 0140-9883

Downloads: (external link)
http://eprints.lse.ac.uk/125663/ Open access version. (application/pdf)

Related works:
Journal Article: Better energy cost information changes household property investment decisions: Evidence from a nationwide experiment (2024)
Working Paper: Better energy cost information changes household property investment decisions: Evidence from a nationwide experiment (2020)
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