Abstract/Description

The aim of this paper is to investigate whether a higher energy efficiency of residential buildings translates into higher house prices in Italy. We employ novel, and almost unexploited, data on Energy Performance Certificates of three Italian regions (EmiliaRomagna, Lombardy and Piedmont) and merge them with house prices and socioeconomic variables at various aggregation levels. The relationship between house prices and energy efficiency is estimated by means of hedonic regression models, quantile regressions and fixed effects panel data models. Our results reveal the existence of an energy-efficiency price premium in the three regions, with significant differences among them. Heterogeneity is also detected along the price distribution, at least for Lombardy and Piedmont. Finally, relevant variables showing a positive association with price are more recent construction years, higher mobility in the housing market and higher income within municipalities.

Keywords

Energy Performance Certificates, Energy Performance of Buildings Directive, House prices, Hedonic regression, Quantile regression

JEL Codes

Q40; C31; C33

Location

MAV 1 room, Adamjee building

Session Theme

Cities and Infrastructure

Session Type

Parallel Technical Session

Session Chair

Qazi Masood, Institute of Business Administration

Session Discussant

Demetrio Panarello, Link Campus University ; Zahid Asghar, Quaid-i-Azam University

Start Date

10-12-2024 3:15 PM

End Date

10-12-2024 5:15 PM

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Dec 10th, 3:15 PM Dec 10th, 5:15 PM

The energy efficiency price premium of residential buildings in three Italian regions

MAV 1 room, Adamjee building

The aim of this paper is to investigate whether a higher energy efficiency of residential buildings translates into higher house prices in Italy. We employ novel, and almost unexploited, data on Energy Performance Certificates of three Italian regions (EmiliaRomagna, Lombardy and Piedmont) and merge them with house prices and socioeconomic variables at various aggregation levels. The relationship between house prices and energy efficiency is estimated by means of hedonic regression models, quantile regressions and fixed effects panel data models. Our results reveal the existence of an energy-efficiency price premium in the three regions, with significant differences among them. Heterogeneity is also detected along the price distribution, at least for Lombardy and Piedmont. Finally, relevant variables showing a positive association with price are more recent construction years, higher mobility in the housing market and higher income within municipalities.