 You can't take it with you: Appliance choices and the energy efficiency gapJournal of Environmental Economics and Management, 2018, vol. 88, issue C, 327-344 Abstract: In the U.S. real estate market, some types of appliances are expected to convey (be included) with the sale of a house, while other appliances may or may not convey depending on local norms that vary at the state level. An appliance that conveys will be left behind when a homeowner moves, while an appliance that does not convey may be kept until the end of its useful life. I estimate the effect of an appliance conveying using a difference-in-differences across states and appliance types, allowing me to fully control for state-level trends with fixed effects. I find that consumers purchase less expensive refrigerators and clothes washers when those appliances convey. This result indicates that the value of these appliances are not fully capitalized into home prices. I further show that accounting for whether an appliance conveys can substantially reduce or eliminate apparent undervaluation of energy efficiency benefits. Date: 2018 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jeeman:v:88:y:2018:i:c:p:327-344 DOI: 10.1016/j.jeem.2018.01.003 Access Statistics for this article Journal of Environmental Economics and Management is currently edited by M.A. Cole, A. Lange, D.J. Phaneuf, D. Popp, M.J. Roberts, M.D. Smith, C. Timmins, Q. Weninger and A.J. Yates More articles in Journal of Environmental Economics and Management from Elsevier |
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