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The price effect of building energy ratings in the Dublin residential market

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Abstract

This paper is an empirical study of the relationship between the energy performance rating of residential homes in the Dublin market between 2009 and 2014 and their market prices, controlling for building type, size, age and location. Initial results suggest that energy efficiency has a significant, positive relationship with list price. A 50-point improvement in the Energy Performance Indicator (kWh/m2/year) is associated with a 1.5 % higher list price. Alternatively, using the Building Energy Rating metric, a 1-point improvement in the 15-point scale from G to A1 yields a list price increase of 1 %. This mirrors findings for efficiency price premiums on a nationwide basis from Hyland et al. (2013). We also find that it is important to include controls for the age of the dwelling to avoid biased energy efficiency estimates in the hedonic model.

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  1. http://www.daft.ie/about/ [Accessed 12 August 2014]

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Acknowledgments

We are grateful for funding from the Sustainable Energy Authority of Ireland and the ESRI Energy Policy Research Centre. The usual disclaimer applies.

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Authors and Affiliations

  1. Economic and Social Research Institute, Dublin, Ireland

    Sarah Stanley & Sean Lyons

  2. Sustainable Energy Authority of Ireland, Dublin, Ireland

    Sarah Stanley

  3. Department of Economics Trinity College Dublin, Dublin, Dublin

    Ronan C. Lyons & Sean Lyons

  4. Spatial Economics Research Centre London School of Economics, London, UK

    Ronan C. Lyons

Authors
  1. Sarah Stanley
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  2. Ronan C. Lyons
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  3. Sean Lyons
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Corresponding author

Correspondence to Sarah Stanley.

Appendices

Appendix 1

Fig. 7
figure 7

Sample building energy rating certificate

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Appendix 2

Table 2 Correlation matrix for continuous variables
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Stanley, S., Lyons, R.C. & Lyons, S. The price effect of building energy ratings in the Dublin residential market. Energy Efficiency 9, 875–885 (2016). https://doi.org/10.1007/s12053-015-9396-5

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