Series: Occasional Papers. 2508.
Author: Pana Alves and Olivier Hubert.
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Abstract
This study quantifies the extent to which the energy efficiency level of housing influences its price. To this end, data on more than one million residential properties sold in Spain between 2015 and 2022 are analyzed. Using a hedonic regression model, the study concludes that higher energy efficiency raises, on average, the price of a property by up to 9.7% compared to the least efficient ones. Moreover, this effect has intensified in recent years, especially for homes with the highest energy efficiency. Additionally, the type of housing, as well as the heating and cooling needs of the municipality where the property is located, influence the effect of energy efficiency on the price. Specifically, in detached houses—i.e. independent single-family homes—and in areas with greater heating needs, the impact of energy efficiency on price is more pronounced.