316
Views
0
CrossRef citations to date
0
Altmetric
Research Article

Do private rental tenants pay for energy efficiency?: The dynamics of green premiums and brown discounts

, , , &
Received 10 Sep 2023, Accepted 22 Apr 2024, Published online: 09 May 2024

References

  • Ambrose, A. R. (2015). Improving energy efficiency in private rented housing: Why don’t landlords act? Indoor and Built Environment, 24(7), 913–924. https://doi.org/10.1177/1420326X15598821
  • Bahareh, K. M., Usman, M., Mazhar, B., Simmonite, M., Sarshar, B., & Sertyesilisik, B. (2018). An investigation into retrofitting the pre-1919 owner-occupied UK housing stock to reduce carbon emissions. Energy & Buildings, 176, 33–44.
  • Bian, X., & Fabra, N. (2020). Incentives for information provision: Energy efficiency in the Spanish rental market. Energy Economics, 90, 104813. https://doi.org/10.1016/j.eneco.2020.104813
  • Bird, S., & Hernández, D. (2012). Policy options for the split incentive: Increasing energy efficiency for low-income renters. Energy Policy, 48, 506–514. https://doi.org/10.1016/j.enpol.2012.05.053
  • Brounen, D., & Kok, N. (2011). On the economics of energy labels in the housing market. Journal of Environmental Economics and Management, 62(2), 166–179. https://doi.org/10.1016/j.jeem.2010.11.006
  • Brundtland, G. H. (1985). World commission on environment and development. Environmental Policy & Law, 14(1), 26–30.
  • Buchinsky, M. (1991). The theory and practice of quantile regression. Harvard University.
  • Buchinsky, M. (1998). Recent advances in quantile regression models: A practical guideline for empirical research. The Journal of Human Resources, 33(1), 88–126. https://doi.org/10.2307/146316
  • Burford, I., Gangadharan, L., & Nemes, V. (2012). Stars and standards: Energy efficiency in rental markets. Journal of Environmental Economics & Management, 64(2), 153–168.
  • Cajias, M., Fuerst, F., & Bienert, S. (2019). Tearing down the information barrier: The price impacts of energy efficiency ratings for buildings in the German rental market. Energy Research & Social Science, 47, 177–191. https://doi.org/10.1016/j.erss.2018.08.014
  • Cajias, M., & Piazolo, D. (2013). Green performs better: Energy efficiency and financial return of buildings. Journal of Corporate Real Estate, 15(1), 53–72. https://doi.org/10.1108/JCRE-12-2012-0031
  • Carroll, J., Aravena, C., & Denny, E. (2016). Low energy efficiency in rental properties: Asymmetric information or low willingness-to-pay? Energy Policy, 96, 617–629. https://doi.org/10.1016/j.enpol.2016.06.019
  • Cerin, P., Hassel, L. G., & Semenova, N. (2014). Energy performance and housing prices. Sustainable Development, 22(6), 404–419. https://doi.org/10.1002/sd.1566
  • Chegut, A., Eichholtz, P., Holtermans, R., & Palacios, J. (2020). Energy efficiency information and valuation practices in rental housing. The Journal of Real Estate Finance and Economics, 60(1–2), 181–204. https://doi.org/10.1007/s11146-019-09720-0
  • Collins, M., & Curtis, J. (2018). Rental tenants’ willingness-to-pay for improved energy efficiency and payback periods for landlords. Energy Efficiency, 11(8), 2033–2056. https://doi.org/10.1007/s12053-018-9668-y
  • Collins, M., & Curtis, J. A. (2017). Can tenants afford to care? Investigating the willingness-to-pay for improved energy efficiency of rental tenants and returns to investment for landlords. ESRI working paper, No. 565. The Economic and Social Research Institute (ESRI), Dublin.
  • Davis, P., McCord, M. J., McCluskey, W., Montgomery, E., Haran, M., & McCord, J. (2017). Is energy performance too taxing? A CAMA approach to modelling residential energy in housing in Northern Ireland. Journal of European Real Estate Research, 10(2), 124–148. https://doi.org/10.1108/JERER-06-2016-0023
  • Davis, P. T., McCord, J. A., McCord, M., & Haran, M. (2015). Modelling the effect of energy performance certificate rating on property value in the Belfast housing market. International Journal of Housing Markets and Analysis, 8(3), 292–317. https://doi.org/10.1108/IJHMA-09-2014-0035
  • de Ayala, A., Galarraga, I., & Spadaro, J. V. (2016). The price of energy efficiency in the Spanish housing market. Energy Policy, 94, 16–24. https://doi.org/10.1016/j.enpol.2016.03.032
  • De T’Serclaes, P. (2007). Financing energy efficient homes. IEA information paper.
  • Egypt, F. (1989). Declaration of the Hague. Environmental Policy & Law, 19, 79.
  • Energy Savings Trust. (2021) https://energysavingtrust.org.uk/retrofitting-the-uks-housing-stock-to-reach-net-zero/
  • European Commission. (2021). Directive of the European Parliament and of the council on the energy performance of buildings (recast). {SEC (2021) 430 final} – {SWD (2021) 453 final} – {SWD(2021) 454 final. https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52021PC0802&qid=1641802763889
  • Ferentinos, K., Gibberd, A., & Guin, B. (2021). Climate policy and transition risk in the housing market (April 30, 2021). Bank of England working paper No. 918. https://doi.org/10.2139/ssrn.3838700
  • Franke, M., & Nadler, C. (2019). Energy efficiency in the German residential housing market: Its influence on tenants and owners. Energy Policy, 128, 879–890. https://doi.org/10.1016/j.enpol.2019.01.052
  • Fuerst, F., Haddad, M. F. C., & Adan, H. (2020). Is there an economic case for energy-efficient dwellings in the UK private rental market? Journal of Cleaner Production, 245, 118642. https://doi.org/10.1016/j.jclepro.2019.118642
  • Fuerst, F., McAllister, P., Nanda, A., & Wyatt, P. (2016). Energy performance ratings and house prices in Wales: An empirical study. Energy Policy, 92, 20–33. https://doi.org/10.1016/j.enpol.2016.01.024
  • Fuerst, F., McAllister, P. M., Nanda, A., & Wyatt, P. (2013). Is energy efficiency priced in the housing market? Some evidence from the United Kingdom. Some evidence from the United Kingdom (February 26, 2013).
  • Gabe, J., Rehm, M., Dixon, T., Bright, S., & Peter Mallaburn, P. (2014). Do tenants pay energy efficiency rent premiums? Journal of Property Investment & Finance, 32(4), 333–351. https://doi.org/10.1108/JPIF-09-2013-0058
  • Galvin, R. (2023). Rental and sales price premiums for energy efficiency in Germany’s pre-war apartments: Where are the shortfalls and what is society’s role in bringing fairness?. Energy Research & Social Science.
  • Gynther, L., Lappillone, B., & Pollier, K. (2015). Energy efficiency trends and policies in the household and tertiary sectors. An Analysis Based on the ODYSSEE and MURE Databases, 97. http://www.odyssee-mure.eu/publications/br/energy-efficiency-trends-policies-buildings.pdf
  • Hope, A. J., & Booth, A. (2014). Attitudes and behaviours of private sector landlords towards the energy efficiency of tenanted homes. Energy Policy, 75, 369–378. https://doi.org/10.1016/j.enpol.2014.09.018
  • Hyland, M., Lyons, R. C., & Lyons, S. (2013). The value of domestic building energy efficiency—evidence from Ireland. Energy Economics, 40, 943–952. https://doi.org/10.1016/j.eneco.2013.07.020
  • Im, J., Seo, Y., Cetin, K. S., & Singh, J. (2017). Energy efficiency in US residential rental housing: Adoption rates and impact on rent. Applied Energy, 205, 1021–1033. https://doi.org/10.1016/j.apenergy.2017.08.047
  • Kim, Y., Tanaka, K., Matsuoka, S., & Gherghina, S. C. (2020). Environmental and economic effectiveness of the kyoto protocol. PLOS One, 15(7), e0236299. https://doi.org/10.1371/journal.pone.0236299
  • Koenker, R., & Bassett, G. (1978). Regression quantiles. Econometrica, 46(1), 33–50. https://doi.org/10.2307/1913643
  • Koenker, R., & Hallock, K. F. (2001). Quantile regression. Journal of Economic Perspectives, 15(4), 143–156. https://doi.org/10.1257/jep.15.4.143
  • Lang, M., Lane, R., Zhao, K., & Raven, R. (2022). Energy efficiency in the private rental sector in Victoria, Australia: When and why do small-scale private landlords retrofit? Energy Research & Social Science, 88, 102533. https://doi.org/10.1016/j.erss.2022.102533
  • Laquatra, J. (1987). Energy efficiency in rental housing. Energy Policy, 15(6), 549–558. https://doi.org/10.1016/0301-4215(87)90166-2
  • Liu, N., Zhao, Y., & Ge, J. (2018). Do renters skimp on energy efficiency during economic recessions? Evidence from Northeast Scotland. Energy, 165, 164–175. https://doi.org/10.1016/j.energy.2018.09.078
  • Loga, T., Stein, B., & Diefenbach, N. (2016). TABULA building typologies in 20 European countries-making energy-related features of residential building stocks comparable. Energy Buildings, 132(2016), 4–12. Available online at: https://doi.org/10.1016/j.enbuild.2016.06.094
  • Marmolejo-Duarte, C., & Chen, A. (2019). The uneven price impact of energy efficiency ratings on housing segments. Implications for public policy and Private markets. Sustainability, 11(2), 372. https://doi.org/10.3390/su11020372
  • Marmolejo-Duarte, C., Chen, A., & Bravi, M. (2020). Spatial implication of EPC ranking over residential prices. In G. Mondini (Ed.), Values and functions for future cities (pp. 51–71). Springer Nature.
  • McCord, M., Davis, P., McCord, J., Haran, M., & Davison, K. (2020). An exploratory investigation into the relationship between energy performance certificates and sales price: A polytomous universal model approach. Journal of Financial Management of Property and Construction, 25(2), 247–271. https://doi.org/10.1108/JFMPC-08-2019-0068
  • McCord, M., Haran, M., Davis, P., & McCord, J. (2020). Energy performance certificates and house prices. A quantile regression approach. Journal of European Real Estate Research. ISSN:1753-9269. 13(3), 409–434. https://doi.org/10.1108/JERER-06-2020-0033
  • McCord, M., Lo, D., Davis, P. T., Hemphill, L., McCord, J., & Haran, M. (2020). A spatial analysis of EPCs in the Belfast metropolitan area housing market. Journal of Property Research, 37(1), 25–61. https://doi.org/10.1080/09599916.2019.1697345
  • Mosteller, F., & Tukey, J. W. (1977). Data analysis and regression: A second course in statistics. Addison-Wesley, Reading, MA.
  • Murphy, L. (2014). The influence of the energy performance certificate: The Dutch case. Energy Policy, 67, 664–672. https://doi.org/10.1016/j.enpol.2013.11.054
  • Myers, E. (2020). Asymmetric information in residential rental markets: Implications for the energy efficiency gap. Journal of Public Economics, 190, 104251. https://doi.org/10.1016/j.jpubeco.2020.104251
  • Petrov, I., & Ryan, L. (2021). The landlord-tenant problem and energy efficiency in the residential rental market. Energy Policy, 157, 112458. https://doi.org/10.1016/j.enpol.2021.112458
  • Phillips, Y. (2012). Landlords versus tenants: Information asymmetry and mismatched preferences for home energy efficiency. Energy Policy, 45, 112–121. https://doi.org/10.1016/j.enpol.2012.01.067
  • Rayer, T., & Jordan, A. (2016). Climate change and policy in the European Union. Climate Science. Retrieved August 7, 2023 from https://www.consilium.europa.eu/en/policies/climate-change/eu-climate-action/
  • Sieger, L., & Weber, C. (2023). Inefficient markets for energy efficiency?–the efficiency premium puzzle in the German rental housing market. Energy Policy, 183, 113819. https://doi.org/10.1016/j.enpol.2023.113819
  • Taltavull, P., Anghel, I., & Ciora, C. (2017). Impact of energy performance on transaction prices: Evidence from the apartment market in Bucharest. Journal of European Real Estate Research, 10(1), 57–72. https://doi.org/10.1108/JERER-12-2016-0046
  • Taruttis, L., & Weber, C. (2022). Inefficient markets for energy efficiency-empirical evidence from the German rental housing market. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.4047715
  • Wrigley, K., & Crawford, R. H. (2017). Identifying policy solutions for improving the energy efficiency of rental properties. Energy Policy, 108, 369–378. https://doi.org/10.1016/j.enpol.2017.06.009