Scandinavian Working Papers in Economics
Working Paper Series,
Royal Institute of Technology, Department of Real Estate and Construction Management & Banking and Finance
No 13/6: The Impact of Energy Performance on Single-Family Home Sales Prices in Sweden
Lovisa Högberg ()
Additional contact information
Lovisa Högberg: Department of Real Estate and Construction Management, Royal Institute of Technology, Postal: Department of Real Estate and Construction Management , Royal Institute of Technology, Brinellvägen 1, 100 44 Stockholm, Sweden
Abstract: The EU Energy Performance Certificates provide new information and measure energy performance more exactly than many earlier (proxy) variables. This is one of the first studies to test the effect of this information, and the first one using Swedish data. The purpose of the paper is to test whether energy performance affects single-family house sales prices, and whether such impact is heterogeneous over house size, age and distance from city center. The paper also examines whether recommendations for supposedly cost-effective energy efficiency measures, by intervention category (construction, installation or operation/control technical measures), are perceived as untapped potential affecting sales prices. Energy performance measurement and dummy variables for three categories of improvement recommendations were included as explanatory variables in a hedonic regression analysis using transaction data and Energy Performance Certificates data for 1073 observations. The results indicate that better energy performance has a positive impact on sales price. Energy efficiency recommendations seem to have an impact on sales price; home buyers seem to require a larger “discount” for more complex types of measures. The results may imply that energy efficiency in buildings will become more important in the future, which may strengthen house owners’/sellers’ incentives to improve energy efficiency.
Keywords: Energy efficiency; energy performance; property value; hedonic model; Swedish housing market
21 pages, March 27, 2013
Full text files
WP201306.pdf?m
- Published as
- Lovisa Högberg, (2013), 'The Impact of Energy Performance on Single-Family Home Sales Prices in Sweden', Journal of European Real Estate Research, vol 6, no 3, pages 242-261
- Royal Institute of Technology, Department of Real Estate and Construction Management & Banking and Finance
- Home page for this series
Questions (including download problems) about the papers in this series should be directed to Cecilia Hermansson ()
Report other problems with accessing this service to Sune Karlsson ().
RePEc:hhs:kthrec:2013_006This page generated on 2024-09-13 22:15:59.