Energy performance certification and time on the market

E. Aydin; Santiago Bohorquez Correa; Dirk Brounen

doi:10.1016/j.jeem.2019.102270

Energy performance certification and time on the market

E. Aydin, Santiago Bohorquez Correa, Dirk Brounen

Research output: Contribution to journal › Article › Scientific › peer-review

Abstract

This paper analyzes whether energy performance certificates (EPCs) serve as means to reduce the information asymmetry among market participants during the sale of homes. Using a sample of 876,000 single-family homes in the Netherlands, we examine the impact of EPC adoption on the speed of sale. Our results indicate that energy-rated homes sell faster than non-energy-rated homes, an effect that varies by 7–12 percent depending on model specifications and increases when positive (green) ratings are granted. The information conveyed by these certificates reduces the information asymmetry between buyers and sellers, which helps to reduce the uncertainty of quality.

Original language	English
Article number	102270
Journal	Journal of Environmental Economics and Management
Volume	98
DOIs	https://doi.org/10.1016/j.jeem.2019.102270
Publication status	Published - Nov 2019

Keywords

energy performance certificate
information assymmetry
housing market
time on the market
energy efficiency

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title = "Energy performance certification and time on the market",

abstract = "This paper analyzes whether energy performance certificates (EPCs) serve as means to reduce the information asymmetry among market participants during the sale of homes. Using a sample of 876,000 single-family homes in the Netherlands, we examine the impact of EPC adoption on the speed of sale. Our results indicate that energy-rated homes sell faster than non-energy-rated homes, an effect that varies by 7–12 percent depending on model specifications and increases when positive (green) ratings are granted. The information conveyed by these certificates reduces the information asymmetry between buyers and sellers, which helps to reduce the uncertainty of quality.",

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author = "E. Aydin and {Bohorquez Correa}, Santiago and Dirk Brounen",

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AU - Bohorquez Correa, Santiago

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AB - This paper analyzes whether energy performance certificates (EPCs) serve as means to reduce the information asymmetry among market participants during the sale of homes. Using a sample of 876,000 single-family homes in the Netherlands, we examine the impact of EPC adoption on the speed of sale. Our results indicate that energy-rated homes sell faster than non-energy-rated homes, an effect that varies by 7–12 percent depending on model specifications and increases when positive (green) ratings are granted. The information conveyed by these certificates reduces the information asymmetry between buyers and sellers, which helps to reduce the uncertainty of quality.

KW - energy performance certificate

KW - information assymmetry

KW - housing market

KW - time on the market

KW - energy efficiency

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