Does the housing market value energy efficient homes? Evidence from the energy star program

Chris Bruegge, Carmen Carrion Flores, Jaren C. Pope

Research output: Contribution to journalArticle

26 Scopus citations

Abstract

The "Energy Star" certification of residential homes is a recent attempt in the United States to improve energy efficiency in the residential sector by incentivizing home builders to "build green." We examine the effectiveness of this program by estimating homeowners' marginal willingness to pay for Energy Star residences in Gainesville, Florida. We use single-family residential property sales in Gainesville, Florida between 1997 and 2009. Using the hedonic method, we find that homeowners are willing to pay a premium for new Energy Star homes, but that this premium fades rapidly in the resale market.

Original languageEnglish (US)
Pages (from-to)63-76
Number of pages14
JournalRegional Science and Urban Economics
Volume57
DOIs
StatePublished - Mar 1 2016
Externally publishedYes

Keywords

  • Energy star
  • Hedonic method
  • Housing prices
  • Repeat sales

ASJC Scopus subject areas

  • Economics and Econometrics
  • Urban Studies

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