Energy Performance Certificates and investments in building energy efficiency: A theoretical analysis

Pierre Fleckinger (), Matthieu Glachant and Paul-Hervé Tamokoué Kamga
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Paul-Hervé Tamokoué Kamga: CERNA i3 - Centre d'économie industrielle i3 - Mines Paris - PSL (École nationale supérieure des mines de Paris) - PSL - Université Paris Sciences et Lettres - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique

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Abstract: In the European Union, Energy Performance Certificates (EPCs) provide potential buyers or tenants with information on a property's energy performance. By mitigating informational asymmetries on real estate markets, the conventional wisdom is that they will reduce energy use, increase energy-efficiency investments, and improve social welfare. We develop a model that partly contradicts these predictions. Although EPCs always improve social welfare in the absence of market failures other than asymmetric information, their impact on energy use and investments is ambiguous and depends both on the time horizon considered and the distribution of energy needs in the population. This implies that, in a second-best world where energy externalities are under-priced, EPCs can damage social welfare.

Keywords: Energy labeling; Energy efficiency; Buildings (search for similar items in EconPapers)
Date: 2019-10
Note: View the original document on HAL open archive server: https://minesparis-psl.hal.science/hal-02451677v1
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Citations: View citations in EconPapers (3)

Published in Energy Economics, 2019, 84, pp.104604. ⟨10.1016/j.eneco.2019.104604⟩

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Related works:
Journal Article: Energy Performance Certificates and investments in building energy efficiency: A theoretical analysis (2019)
Working Paper: Energy Performance Certificates and investments in building energy efficiency: A theoretical analysis (2019)
Working Paper: Energy performance certificates and investments in building energy efficiency: a theoretical analysis (2018)
Working Paper: Energy performance certificates and investments in building energy efficiency: a theoretical analysis (2018)
Working Paper: Energy performance certificates and investments in building energy efficiency: a theoretical analysis (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02451677

DOI: 10.1016/j.eneco.2019.104604

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