On the use of hedonic regression models to measure the effect of energy efficiency on residential property transaction prices : evidence for Portugal and selected data issues

• Autor(a) principal: Evangelista, Rui
• Data de Publicação: 2019
• Outros Autores: Ramalho, Esmeralda A., Silva, João Andrade e
• Tipo de documento: Artigo
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10400.5/17191
• topic: Portugal; energy efficiency; residential property market; hedonic price models; cross-country comparisons

Using a unique dataset containing information of around 256 thousand residential property sales, this paper discloses a clear sales premium for most energy efficient dwellings, which is more pronounced for apartments (13%) than for houses (5 to 6%). Cross-country comparisons support the finding that energy efficiency price premiums are higher in the Portuguese residential market than in central and northern European markets. Results emphasize the relevance of data issues in hedonic regression models. They illustrate how the use of appraisal prices, explanatory variables with measurement errors, and the omission of variables associated with the quality of the properties, may seriously bias energy efficiency partial effect estimates. These findings provide valuable information not only to policy-makers, but also to researchers interested in this area.