Exploring discrepancies in energy performance certificates: Analyzing energy efficiency premiums for buildings based on theoretical energy requirements versus actual energy consumption

Timo Andreas Deller

Junior Management Science (JUMS), 2025, vol. 10, issue 2, 522-560

Abstract: The building sector is lagging its needed decarbonization pathway. This paper examines EPC policy impacts on building economics in the Rhein-Main Region in Germany. Energy efficiency premiums for rents and sales prices and the effects of the EPC type are investigated using data from 01/2015 - 06/2023 (N = 212 167 rent sample; N = 159 573 sales sample) and hedonic price models. Energy efficiency premiums are present and range up to 7.0%, 4.6% and 6.9% for cold and warm rents and sales prices, respectively, when comparing an A+ to a D rated building. Consumption certificates reflect warm rents better but have a limited sales price impact. Results are rent efficiency premiums of up to 7.1% (A+), no rent discounts for energy inefficiency and a general sales price discount of about 3%. Requirement certificates are viewed as objective, yet less consumption-indicative, especially in the sales market. Rent efficiency premiums of up to 8.8% (A+) and no rent discounts for energy inefficiency are estimated for a building with a requirement certificate. Sales price efficiency premiums of up to 7.4% (A+) and sales price inefficiency discounts of up to -10.2% (H) exist. Overall, current German EPC policy does not address imperfect information, and it is recommended to revise its implementation.

Keywords: energy efficiency; energy performance certificate; EPC; hedonic price model; real estate investments; real estatevaluation (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:jumsac:320458

DOI: 10.5282/jums/v10i2pp522-560

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