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 languageEnglish
Article number102270
JournalJournal of Environmental Economics and Management
Volume98
DOIs
Publication statusPublished - Nov 2019

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certification
market
asymmetry
energy
Time on market
Certification
Energy
Information asymmetry

Keywords

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

Cite this

Aydin, E. ; Bohorquez Correa, Santiago ; Brounen, Dirk. / Energy performance certification and time on the market. In: Journal of Environmental Economics and Management. 2019 ; Vol. 98.
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Aydin, E, Bohorquez Correa, S & Brounen, D 2019, 'Energy performance certification and time on the market', Journal of Environmental Economics and Management, vol. 98, 102270. https://doi.org/10.1016/j.jeem.2019.102270

Energy performance certification and time on the market. / Aydin, E.; Bohorquez Correa, Santiago; Brounen, Dirk.

In: Journal of Environmental Economics and Management, Vol. 98, 102270, 11.2019.

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

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T1 - Energy performance certification and time on the market

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N2 - 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.

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.

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Aydin E, Bohorquez Correa S, Brounen D. Energy performance certification and time on the market. Journal of Environmental Economics and Management. 2019 Nov;98. 102270. https://doi.org/10.1016/j.jeem.2019.102270

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