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Energy Efficiency

, Volume 9, Issue 4, pp 875–885 | Cite as

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

  • Sarah Stanley
  • Ronan C. Lyons
  • Sean Lyons
Original Paper

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.

Keywords

Domestic building energy ratings Hedonic valuation Ireland 

Notes

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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Copyright information

© Springer Science+Business Media Dordrecht 2015

Authors and Affiliations

  1. 1.Economic and Social Research InstituteDublinIreland
  2. 2.Sustainable Energy Authority of IrelandDublinIreland
  3. 3.Department of Economics Trinity College DublinDublinDublin
  4. 4.Spatial Economics Research Centre London School of EconomicsLondonUK

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