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

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

Energy Economics, 2024, vol. 139, issue C

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: Housing demand; Energy efficiency; Energy policy; Imperfect information; Framing; Field experiment (search for similar items in EconPapers)
JEL-codes: D83 D91 Q41 Q48 R21 (search for similar items in EconPapers)
Date: 2024
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Working Paper: 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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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:139:y:2024:i:c:s0140988324006170

DOI: 10.1016/j.eneco.2024.107909

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