Franz Fuerst|Elias Oikarinen|Oskari Harjunen
Green signalling effects in the market for energy-efficient residential buildings
University of Cambridge|University of Turku
empirical evidence recent studies suggests price premium energyefficient buildings potentially higher pure capitalisation energy savings empirical evidence size nonsavings components scant study aims fill research gap investigating whether mandatory energy efficiency ratings residential properties imply benefits go beyond energy savings using sample several thousand apartment transactions helsinki finland first test higher ratings significantly associated higher prices addition large number property neighbourhood characteristics dataset contains information buildinglevel energy usage allows us distinguish cost savings effect energy consumption value intangible factors associated energy label hedonic model yields statistically significant 33 price premium apartments top three energyefficiency categories 15 set detailed neighbourhood characteristics included maintenance costs containing energy usage costs added robust significant price premium 13 persists whereas differentiation found medium lower rating categories findings may indicative energyefficient buildings signalling value therefore additional incentive invest buildings green consumers however favourable energy rating appear speed sales process analysed market