Abstract
Climate policies aimed at reducing greenhouse gas emissions can lead to decreases in the values of assets, risking them to become “stranded”. We study the price effects of the introduction of a specific climate policy, a minimum energy efficiency standard, in the housing market. Leveraging a unique data set of the population of all residential house transactions in England and Wales, we show that prices of energy-inefficient properties affected by this policy decreased on average by about £5k to £9k relative to efficient ones. We interpret this evidence as being consistent with semi-strong market efficiency in the housing market.
| Original language | English |
|---|---|
| Article number | 106555 |
| Journal | Energy Economics |
| Volume | 120 |
| Early online date | 24 Feb 2023 |
| DOIs | |
| Publication status | Published - Apr 2023 |
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
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SDG 7 Affordable and Clean Energy -
SDG 13 Climate Action
Keywords
- Climate policy
- House prices
- energy efficiency
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