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Energy performance certification and time on the market

Erdal Aydin, Santiago Bohorquez Correa and Dirk Brounen

Journal of Environmental Economics and Management, 2019, vol. 98, issue C

Abstract: This paper analyzes whether energy performance certificates (EPCs) serve as means to reduce the information asymmetry among market participants during the sale of homes. Using a sample of 876,000 single-family homes in the Netherlands, we examine the impact of EPC adoption on the speed of sale. Our results indicate that energy-rated homes sell faster than non-energy-rated homes, an effect that varies by 7–12 percent depending on model specifications and increases when positive (green) ratings are granted. The information conveyed by these certificates reduces the information asymmetry between buyers and sellers, which helps to reduce the uncertainty of quality.

Keywords: Energy performance certificate; Information asymmetry; Housing market; Time on the market; Energy efficiency (search for similar items in EconPapers)
JEL-codes: D12 Q51 R21 (search for similar items in EconPapers)
Date: 2019
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DOI: 10.1016/j.jeem.2019.102270

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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

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