Better energy cost information changes household property investment decisions: Evidence from a nationwide experiment

Carroll, James, Denny, Eleanor, Lyons, Ronan C. and Petrov, Ivan (2024) Better energy cost information changes household property investment decisions: Evidence from a nationwide experiment. Energy Economics, 139. ISSN 0140-9883

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Abstract

With buildings accounting for roughly 40 % of energy consumption in the US and Europe, energy efficiency upgrades will be central in meeting climate targets. Using a nationwide controlled field experiment, we find that the inclusion of property-specific energy cost labels within property advertisements increases energy efficiency premiums. We also show that more energy efficient properties sell faster and, for the first time, that energy cost labels shortened time-to-sell. While a major departure from existing property labelling policy, these results suggest that framing property energy efficiency according to their cost implications, rather than in energy units, increases the demand for energy efficiency.

Item Type:	Article
Additional Information:	© 2024 The Author(s)
Divisions:	LSE
Subjects:	G Geography. Anthropology. Recreation > GE Environmental Sciences H Social Sciences > HB Economic Theory
JEL classification:	R - Urban, Rural, and Regional Economics > R2 - Household Analysis > R21 - Housing Demand Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q4 - Energy > Q41 - Demand and Supply Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q4 - Energy > Q48 - Government Policy D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D83 - Search; Learning; Information and Knowledge; Communication; Belief D - Microeconomics > D9 - Intertemporal Choice and Growth > D91 - Intertemporal Consumer Choice; Life Cycle Models and Saving
Date Deposited:	08 Oct 2024 12:27
Last Modified:	12 Nov 2024 20:45
URI:	http://eprints.lse.ac.uk/id/eprint/125663

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