EconPapers    
Economics at your fingertips  
 

The Rent Impact of Disclosing Energy Performance Certificates: Energy Efficiency and Information Effects

Luisa Dressler and Elisabetta Cornago

No ECARES 2017-16, Working Papers ECARES from ULB -- Universite Libre de Bruxelles

Abstract: Energy performance certificates (EPC) can help solve information asymmetries between landlords and tenants about dwellings’ energy performance. EPCs may enable rent premiums for energy efficient dwellings, incentivizing energy efficiency investment in rental property. However, low EPC disclosure rates may undermine their potential to promote investment. Using a cross-sectional dataset of residential rental advertisements from Brussels, we estimate rent premiums from EPCs under de facto voluntary EPC disclosure. We use the Heckman correction and an instrumental variable approach to tackle potential selection bias and endogeneity. First, we find that highly energy-efficient compared to inefficient dwellings earn a rent premium, provided that EPCs are disclosed (energy efficiency effect). This premium may incentivize investment in energy efficiency of rental property. Second, dwellings with average energy performance are penalized from disclosing an EPC (information effect). This may provide a strategic motivation to hide EPCs that indicate mediocre energy performance.

Keywords: asymmetric information; voluntary information disclosure; energy performance certificates; energy efficiency (search for similar items in EconPapers)
JEL-codes: C21 D82 Q48 R31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eff, nep-ene, nep-eur and nep-reg
Date: 2017-04
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Published by:

Downloads: (external link)
https://dipot.ulb.ac.be/dspace/bitstream/2013/2499 ... _CORNAGO-therent.pdf Full text for the whole work, or for a work part (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eca:wpaper:2013/249921

Ordering information: This working paper can be ordered from
http://hdl.handle.ne ... lb.ac.be:2013/249921

Access Statistics for this paper

More papers in Working Papers ECARES from ULB -- Universite Libre de Bruxelles Contact information at EDIRC.
Bibliographic data for series maintained by Benoit Pauwels ().

 
Page updated 2019-11-09
Handle: RePEc:eca:wpaper:2013/249921