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

Chris Bruegge; Carmen Carrión-Flores; Jaren C. Pope

doi:10.1016/j.regsciurbeco.2015.12.001

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

Chris Bruegge, Carmen Carrión-Flores, Jaren C. Pope

Research output: Contribution to journal › Article › peer-review

60 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 language	English (US)
Pages (from-to)	63-76
Number of pages	14
Journal	Regional Science and Urban Economics
Volume	57
DOIs	https://doi.org/10.1016/j.regsciurbeco.2015.12.001
State	Published - Mar 1 2016
Externally published	Yes

Keywords

Energy star
Hedonic method
Housing prices
Repeat sales

ASJC Scopus subject areas

Economics and Econometrics
Urban Studies

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10.1016/j.regsciurbeco.2015.12.001

Cite this

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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.",

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AU - Bruegge, Chris

AU - Carrión-Flores, Carmen

AU - Pope, Jaren C.

PY - 2016/3/1

Y1 - 2016/3/1

N2 - 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.

AB - 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.

KW - Energy star

KW - Hedonic method

KW - Housing prices

KW - Repeat sales

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SN - 0166-0462

VL - 57

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EP - 76

JO - Regional Science and Urban Economics

JF - Regional Science and Urban Economics

ER -

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

Abstract

Keywords

ASJC Scopus subject areas

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