Stranded houses?:The price effect of a minimum energy efficiency standard

Ferentinos, Konstantinos and Gibberd, Alex and Guin, Benjamin (2023) Stranded houses?:The price effect of a minimum energy efficiency standard. Energy Economics, 120. ISSN 0140-9883

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Official URL: https://doi.org/10.1016/j.eneco.2023.106555

Abstract

Climate policies aimed at reducing greenhouse gas emissions can lead to decreases in the values of assets, risking them to become “stranded”. We study the price effects of the introduction of a specific climate policy, a minimum energy efficiency standard, in the housing market. Leveraging a unique data set of the population of all residential house transactions in England and Wales, we show that prices of energy-inefficient properties affected by this policy decreased on average by about £5k to £9k relative to efficient ones. We interpret this evidence as being consistent with semi-strong market efficiency in the housing market.

Item Type:

Journal Article

Journal or Publication Title:

Energy Economics

Additional Information:

This is the author’s version of a work that was accepted for publication in Energy Economics. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Energy Economics, 120, 2023 DOI: 10.1016/j.eneco.2023.106555

Uncontrolled Keywords:

/dk/atira/pure/subjectarea/asjc/2100

Subjects:

?? CLIMATE POLICYHOUSE PRICESENERGY EFFICIENCYECONOMICS AND ECONOMETRICSENERGY(ALL) ??

Departments:

Faculty of Science and Technology > Mathematics and Statistics

ID Code:

187800

Deposited By:

ep_importer_pure

Deposited On:

28 Feb 2023 14:36

Refereed?:

Yes

Published?:

Published

Last Modified:

12 Oct 2023 10:40

URI:

https://eprints.lancs.ac.uk/id/eprint/187800