Modelling the effect of energy performance certificate rating on property value in the Belfast housing market

2015 ◽  
Vol 8 (3) ◽  
pp. 292-317 ◽  
Author(s):  
Peadar T Davis ◽  
John A McCord ◽  
Michael McCord ◽  
Martin Haran
Keyword(s):  
Energy Efficiency ◽  
Housing Market ◽  
Energy Efficient ◽  
Energy Performance ◽  
Hedonic Pricing ◽  
Property Value ◽  
Sale Price ◽  
Content Type ◽  
Data Limitations ◽  
The Relationship

Purpose – This study aims to investigate the relationship between energy performance and property sale price in the Belfast housing market. How energy efficiency is contributes to sale price and thus appraisal value is of growing concern. The obligatory measurement of energy efficiency in private dwellings seeks to encourage improvements in energy performance. This may be capitalised into property value and may stimulate demand for energy-efficient buildings. However, the relationship between energy performance and property value remains nebulous, complex and under-researched – in part due to data limitations. Design/methodology/approach – Using a hedonic pricing specification, this paper measures the effect of energy performance certificates (EPCs) on residential property value. It examines the relationship between 3,797 residential sales transactions across the Belfast housing market, showing the percentage effect on property value with respect to energy performance. Findings – The results indicate a small but positive relationship between better energy performance and higher selling prices. Nonetheless, the findings point towards strong preference, demand tastes and a complex intra-relationship between EPCs and their capitalisation into property value. Pertinently, the findings point towards any energy-efficient-related price effect affect to be marginal alongside more “quality”-based market behaviours. Research limitations/implications – Analogous with other studies, data deficiencies and a lack of incorporating price determining variables (missing determinants) such as heating type and glazing type introduces omitted variable bias and endogeneity problems within the model structure. Originality/value – This paper contributes to emerging literature and policy debate surrounding the measurement and implementation of energy-efficiency certification through a greater understanding of energy performance characteristics in determining property value.

scholarly journals Energy performance certificates and house prices: a quantile regression approach

2020 ◽  
Vol 13 (3) ◽  
pp. 409-434 ◽  
Author(s):  
Michael McCord ◽  
Martin Haran ◽  
Peadar Davis ◽  
John McCord
Keyword(s):  
Energy Efficiency ◽  
Quantile Regression ◽  
House Prices ◽  
Energy Performance ◽  
Data Set ◽  
Content Type ◽  
Conditional Mean ◽  
Price Distribution ◽  
Regression Approach ◽  
The Relationship

Purpose A number of studies have investigated the relationship between energy performance certificates (EPCs) and house prices. A majority of studies have tended to model energy performance pricing effects within a traditional hedonic conditional mean estimate model. There has been limited analysis that has accounted for the relationship between EPCs and the effects across the pricing distribution. Moreover, there has been limited research examining the “standard cost improvements EPC score”, or “potential score”. Therefore, this paper aims to quantify and measure the dynamic effects of EPCs on house prices across the price spectrum and account for standardised cost-effective retrofit improvements. Design/methodology/approach Existing EPC studies produce one coefficient for the entirety of the pricing distribution, culminating in a single marginal implicit price effect. The approach within this study applies a quantile regression approach to empirically estimate how quantiles of house prices respond differently to unitary changes in the proximal effects of EPCs and structural property characteristics across the conditional distribution of house prices. Using a data set of 1,476 achieved transaction prices, the quantile regression models apply both assessed EPC score and bands and further examine the potential EPC rating for improved energy performance based on an average energy cost improvement. Findings The findings show that EPCs are valued differently across the quantiles and that conditional quantiles are asymmetrical. Only property prices in the upper quantiles of the price distribution show significant capitalisation effects with energy performance, and only properties with higher EPC scores display positive significant effects at the higher end of the price distribution. There are also brown discount effects evident for lower-rated properties within F- and G-rated EPC properties at the higher end of the pricing distribution. Moreover, the potential energy efficiency rating (score) also shows increased effects with sales prices and appears to minimise any brown discount effects. The findings imply that energy performance is a complex feature that is not easily “averaged” for valuation effect purposes. Originality/value While numerous studies have investigated the pricing effects of EPCs, they have tended to provide a single estimate to determine the relationship with price. This paper extends the traditional analytical insights beyond the conditional mean estimate by examining the quantiles of the relationship between EPCs and house prices to enhance the understanding of this esoteric and complex issue. In addition, this research applies the assessed energy efficiency potential to establish whether effective cost improvements enhance the relationship with sales price and capitalisation effects.

scholarly journals Decarbonising real estate

2020 ◽  
Vol 13 (3) ◽  
pp. 387-408
Author(s):  
Sara Jane Wilkinson ◽  
Sarah Sayce
Keyword(s):  
Energy Efficiency ◽  
Large Scale ◽  
Residential Buildings ◽  
Well Being ◽  
Energy Performance ◽  
Residential Property ◽  
Content Type ◽  
Study Results ◽  
The Relationship

Purpose About 27 per cent of the total UK carbon emissions are attributed to residential buildings; therefore, improvements to the energy efficiency of the stock offers great potential. There are three main ways to achieve this. First is a mandatory approach, minimum energy efficiency standards are set and applied to new and existing buildings. Option 2 is voluntary, using energy ratings that classify performance to stimulate awareness and action. Third, financial measures, incentives and taxes, are applied to “nudge” behaviours. Most westernised countries have adopted a combination of Options 2 and 3, with the belief that the market will incentivize efficient properties. The belief is voluntary measures will stimulate demand, leading to value premiums. This paper aims to seek a deeper understanding of the relationship between energy efficiency and the value of residential property in Europe and, by so doing, to determine whether stronger policies are required to realise decarbonisation. Design/methodology/approach This paper reviews the current academic literature and large-scale quantitative studies conducted in Europe, mostly using hedonic pricing analysis to seek a relationship between energy performance certificates (EPCs) and either capital or rental values. It compares these to the reported findings of three case study projects that take a variety of different research approaches, all of which have the ambition to understand market behaviours and stimulate occupier or/and owner demand for energy efficient buildings. Findings The large-scale academic study results generally show a positive relationship between observed market prices and EPCs, which are commonly taken as surrogates for efficiency; however, outcomes are variable. One large study found energy upgrades may increase value, but not to the point where costs outweigh the value gain. Other studies found high returns on investment in energy efficiency technologies. The case study projects, however, revealed a more nuanced set of arguments in terms of the relationship between energy efficiency and market behaviours. Whilst there is some evidence that energy efficiency is beginning to impact on value, it is small compared to other value drivers; other drivers, including health, well-being and private sector finance deals, may prove more powerful market drivers. Further, the empirical findings reported point towards the emergence of a “brown” discount being more likely to be the long-term trend than a green premium. It is concluded that the current levels of action are unlikely to deliver the levels of decarbonisation urgently needed. Research limitations/implications This is a desktop study of other European studies that may have collected data on slightly different variables. Practical implications This study shows that more action is required to realise decarbonisation in new and existing residential property in the European states considered. The sector offers potential for substantial reductions, and other mandatory approaches need to be considered. Originality/value This is a timely review of the current outcomes of European programmes (EPCs) adopted in several countries to increase energy efficiency in the residential sector through a voluntary mechanism. The results show that more action is needed.

Does total factor productivity affect the energy efficiency

2020 ◽  
Vol 14 (1) ◽  
pp. 108-125 ◽  
Author(s):  
Salman Haider ◽  
Javed Ahmad Bhat
Keyword(s):  
Energy Efficiency ◽  
Environmental Sustainability ◽  
Energy Efficient ◽  
Energy Intensity ◽  
Paper Industry ◽  
Labour Productivity ◽  
Efficient Technology ◽  
Content Type ◽  
Efficiency Performance ◽  
Energy Efficient Technology

Purpose Because of growing energy consumption and increasing absolute CO2 emissions, the recent calibrations about the environmental sustainability across the globe have mandated to achieve the minimal energy consumption through employing energy-efficient technology. This study aims to estimate linkage between simple measure of energy efficiency indicator that is reciprocal of energy intensity and total factor productivity (TFP) in case of Indian paper industry for 21 major states. In addition, the study incorporates the other control variables like labour productivity, capital utilization and structure of paper industry to scrutinize their likely impact on energy efficiency performance of the industry. Design/methodology/approach To derive the plausible estimates of TFP, the study applies the much celebrated Levinsohn and Petrin (2003) methodology. Using the regional level data for the period 2001-2013, the study employs instrumental variable-generalized method of moments (GMM-IV) technique to examine the nature of relationship among the variables involved in the analysis. Findings An elementary examination of energy intensity shows that not all states are equally energy intensive. States like Goa, Rajasthan, Jharkhand and Tamil Nadu are less energy intensive, whereas Uttar Pradesh, Kerala, Chhattisgarh, Assam and Punjab are most energy-intensive states on the basis of their state averages over the whole study period. The results estimated through GMM-IV show that increasing level of TFP is associated with lower level of energy per unit of output. Along this better skills and capacity utilization are also found to have positive impact on energy efficiency performance of industry. However, the potential heterogeneity within the structure of industry itself is found responsible for its higher energy intensity. Practical implications States should ensure and undertake substantial investment projects in the research and development of energy-efficient technology and that targeted allocations could be reinforced for more fruitful results. Factors aiming at improving the labour productivity should be given extra emphasis together with capital deepening and widening, needed for energy conservation and environmental sustainability. Given the dependence of structure of paper industry on the multitude of factors like regional inequality, economic growth, industrial structure and the resource endowment together with the issues of fragmented sizes, poor infrastructure and availability and affordability of raw materials etc., states should actively promote the coordination and cooperation among themselves to reap the benefits of technological advancements through technological spill overs. In addition, owing to their respective state autonomies, state governments should set their own energy saving targets by taking into account the respective potentials and opportunities for the different industries. Despite the requirement of energy-efficient innovations, however, the cons of technological advancements and the legal frameworks on the employment structure and distributional status should be taken care of before their adoption and execution. Originality/value To the best of our knowledge, this is the first study that empirically examines the linkage between energy efficiency and TFP in case of Indian paper industry. The application of improved methods like Levinsohn and Petrin (2003) to derive the TFP measure and the use of GMM-IV to account for potential econometric problems like that of endogeneity will again add to the novelty of study.

Recommended angle of a modular dynamic façade in hot-arid climate: daylighting and energy simulation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Seyedeh Samaneh Golzan ◽  
Mina Pouyanmehr ◽  
Hassan Sadeghi Naeini
Keyword(s):  
Energy Consumption ◽  
Energy Efficient ◽  
Energy Performance ◽  
Arid Climate ◽  
Visual Comfort ◽  
Building Envelopes ◽  
Content Type ◽  
Optimum Angle ◽  
Energy Efficient Buildings ◽  
Hot Arid Climate

PurposeThe modular dynamic façade (MDF) concept could be an approach in a comfort-centric design through proper integration with energy-efficient buildings. This study focuses on obtaining and/or calculating an efficient angle of the MDF, which would lead to the optimum performance in daylight availability and energy consumption in a single south-faced official space located in the hot-arid climate of Yazd, Iran.Design/methodology/approachThe methodology consists of three fundamental parts: (1) based on previous related studies, a diamond-based dynamic skin façade was applied to a south-faced office building in a hot-arid climate; (2) the daylighting and energy performance of the model were simulated annually; and (3) the data obtained from the simulation were compared to reach the optimum angle of the MDF.FindingsThe results showed that when the angle of the MDF openings was set at 30°, it could decrease energy consumption by 41.32% annually, while daylight simulation pointed that the space experienced the minimum possible glare at this angle. Therefore, the angle of 30° was established as the optimum angle, which could be the basis for future investment in responsive building envelopes.Originality/valueThis angular study simultaneously assesses the daylight availability, visual comfort and energy consumption on a MDF in a hot-arid climate.

A method for energy efficiency assessment during urban energy planning

2014 ◽  
Vol 3 (2) ◽  
pp. 132-152 ◽  
Author(s):  
Karin Regina de Casas Castro Marins
Keyword(s):  
Energy Efficiency ◽  
Urban Areas ◽  
Energy Use ◽  
Energy Performance ◽  
Urban Morphology ◽  
Pollutant Emissions ◽  
Energy Planning ◽  
Bottom Up ◽  
Content Type ◽  
Urban Energy

Purpose – Energy use in urban areas has turned a subject of local and worldwide interest over the last few years, especially emphasized by the correlated greenhouse gases emissions. The purpose of this paper is to analyse the overall energy efficiency potential and emissions resulting from integrated solutions in urban energy planning, in the scale of districts and neighbourhoods in Brazil. Design/methodology/approach – The approach is based on the description and the application of a method to analyse energy performance of urban areas and support their planning. It is a quantitative bottom-up method and involves urban morphology, urban mobility, buildings and energy supply systems. Procedures are applied to the case study of Agua Branca urban development area, located in Sao Paulo, Brazil. Findings – In the case of Agua Branca area, energy efficiency measures in buildings have shown to be very important mostly for the buildings economies themselves. For the area as a whole, strategies in promoting public transport are more effective in terms of energy efficiency and also to decrease pollutant emissions. Originality/value – Literature review has shown there is a lack of approaches and procedures able to support urban energy planning at a community scale. The bottom-up method presented in this paper integrates a plenty of disaggregated and multisectoral parameters at the same stage in urban planning and shows that is possible to identify the most promising actions by building overall performance indexes.

Energy foresight, scenarios and sustainable energy policy in Brazil

foresight ◽  
2016 ◽  
Vol 18 (5) ◽  
pp. 535-550 ◽  
Author(s):  
Nathaniel Horner ◽  
Antonio Geraldo de Paula Oliveira ◽  
Richard Silberglitt ◽  
Marcelo Khaled Poppe ◽  
Bárbara Bressan Rocha
Keyword(s):  
Energy Efficiency ◽  
Energy Policy ◽  
Energy Performance ◽  
Policy Implications ◽  
Content Type ◽  
Carbon Efficiency ◽  
Specific Policy ◽  
Ghg Reduction ◽  
Energy History ◽  
Carbon Performance

Purpose This paper aims to use quantitative metrics to chart the unique history leading to Brazil’s leadership in renewable energy and identifies a set of meta-scenarios that define possible future carbon performance. These meta-scenarios provide a context for discussing specific energy policy implications both at the national scale and from the perspective of Brazil’s urban centres. Design/methodology/approach The paper defines and uses three metrics – energy efficiency, decarbonisation and carbon efficiency – to plot both Brazil’s historic energy pathway and a set of future energy scenarios put forth by various national and international energy agencies. The authors then use a meta-scenario approach to group these alternate pathways, identifying specific policy levers associated with the realisation of each. Findings The authors identify plausible policy changes that will help move Brazil off a current trajectory of stagnated energy performance to a “greener” scenario in which carbon efficiency improves even as Brazil’s economic growth continues. Such policies include energy efficiency programmes and continued expansion of the country’s already extensive hydropower and biomass capacity. Adoption of policies that would put Brazil on a more aggressive path towards a global sustainability scenario currently seems impractical. Originality/value This paper brings a standardized set of metrics to bear on Brazil’s unique energy history, which in turn helps identify specific policy impacts for continued GHG reduction in Brazil’s future from national and urban perspectives.

Rent or buy, what are the odds? Analysing the price-to-rent ratio for housing types within the Northern Ireland housing market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Daniel Lo ◽  
Michael James McCord ◽  
John McCord ◽  
Peadar Thomas Davis ◽  
Martin Haran
Keyword(s):  
Housing Market ◽  
House Prices ◽  
House Price ◽  
Main Property ◽  
Property Market ◽  
Important Indicator ◽  
Content Type ◽  
Rental Market ◽  
Price Series ◽  
The Relationship

Purpose The price-to-rent ratio is often regarded as an important indicator for measuring housing market imbalance and inefficiency. A central question is the extent to which house prices and rents form part of the same market and thus whether they respond similarly to parallel stimulus. If they are close proxies dynamically, then this provides valuable market intelligence, particularly where causal relationships are evident. Therefore, this paper aims to examine the relationship between market and rental pricing to uncover the price switching dynamics of residential real estate property types and whether the deviation between market rents and prices are integrated over both the long- and short-term. Design/methodology/approach This paper uses cointegration, Wald exogeneity tests and Granger causality models to determine the existence, if any, of cointegration and lead-lag relationships between prices and rents within the Belfast property market, as well as the price-to-rent ratios amongst its five main property sub-markets over the time period M4, 2014 to M12 2018. Findings The findings provide some novel insights in relation to the pricing dynamics within Belfast. Housing and rental prices are cointegrated suggesting that they tend to move in tandem in the long run. It is further evident that in the short-run, the price series Granger-causes that of rents inferring that sales price information unidirectionally diffuse to the rental market. Further, the findings on price-to-rent ratios reveal that the detached sector appears to Granger-cause those of other property types except apartments in both the short- and long-term, suggesting possible spill-over of pricing signals from the top-end to the lower strata of the market. Originality/value The importance of understanding the relationship between house prices and rental market performance has gathered momentum. Although the house price-rent ratio is widely used as an indicator of over and undervaluation in the housing market, surprisingly little is known about the theoretical relationship between the price-rent ratio across property types and their respective inter-relationships.

Influence of building and indoor environmental parameters on designing energy-efficient buildings

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Stephen O. Eromobor ◽  
Dillip Kumar Das ◽  
Fidelis Emuze
Keyword(s):  
South Africa ◽  
Energy Consumption ◽  
Energy Efficient ◽  
Environmental Parameters ◽  
Energy Performance ◽  
Width Ratio ◽  
Content Type ◽  
Window Width ◽  
University Buildings ◽  
Building Parameters

PurposeArguments for the design of sustainable university buildings have emerged in South Africa. Energy being a major determinant of the sustainability of buildings, the purpose of this study was to examine the influence of various building and indoor environmental parameters on the energy performance of university buildings in South Africa.Design/methodology/approachA quantitative survey research method, administered within the context of university buildings in South Africa, was used. Data about 16 buildings from three universities were collected. Relevant, inferential statistical analyses were conducted to examine the relative influence of the building parameters on the energy consumed in the buildings. Also, regression models within building parameters were developed independently and in a combination that could be used to estimate energy consumption in the university buildings.FindingsFindings suggested that building and indoor environmental parameters of humidity, indoor temperature, volume, illumination, and window width ratio (WWR), in that order, influenced energy consumption significantly, and also, had direct empirical relationships.Practical implicationsOptimising the building and indoor environmental parameters in design will enhance energy-efficiency in university buildings in South Africa.Originality/valueThis study contributes to the literature in terms of understanding the order of influence of building parameters on energy consumption in university buildings in the temperate climatic zone of South Africa. It also established empirical models between building and indoor environmental parameters and energy consumption, both independently and in combination, that could assist in designing energy-efficient and sustainable university buildings.

The energy efficiency and carbon footprint of temporary homes: a case study from Japan

2017 ◽  
Vol 8 (4) ◽  
pp. 326-343 ◽  
Author(s):  
Matti Kuittinen ◽  
Atsushi Takano
Keyword(s):  
Energy Efficiency ◽  
Life Cycle ◽  
Carbon Footprint ◽  
Energy Demand ◽  
Tohoku Earthquake ◽  
Energy Performance ◽  
Refugee Camps ◽  
Content Type ◽  
Proper Design

Purpose The purpose of this study is to investigate the energy efficiency and life cycle carbon footprint of temporary homes in Japan after the Great Eastern Tohoku Earthquake in 2011. Design/methodology/approach An energy simulation and life cycle assessment have been done for three alternative shelter models: prefabricated shelters, wooden log shelters and sea container shelters. Findings Shelter materials have a very high share of life cycle emissions because the use period of temporary homes is short. Wooden shelters perform best in the comparison. The clustering of shelters into longer buildings or on top of each other increases their energy efficiency considerably. Sea containers piled on top of each other have superb energy performance compared to other models, and they consume even less energy per household than the national average. However, there are several gaps of knowledge in the environmental assessment of temporary homes and field data from refugee camps should be collected as part of camp management. Originality/value The findings exemplify the impacts of the proper design of temporary homes for mitigating their energy demand and greenhouse gas emissions.

scholarly journals Energy Efficient Improvements of Existing Buildings through Building Envelope Upgrade Case Study of High Rise Block of Flats on 76, Boulevard Partizanski Odredi in Karpos IV, Skopje

2016 ◽  
Vol 2016 ◽  
pp. 1-180
Author(s):  
Katerina Petrushevska
Keyword(s):  
Energy Efficiency ◽  
Energy Efficient ◽  
Energy Performance ◽  
Building Envelope ◽  
Living Room ◽  
Building Stock ◽  
Existing Building ◽  
High Rise ◽  
Class B

AIM: This research examines the important issue of energy efficient improvements to the existing building stock through building envelope upgrade. To facilitate this, the energy performance characteristics of the existing building stock were identified with a view to establishing an existing building stock type, where building envelope upgrades can contribute to a higher level of energy efficiency improvements. The literature review along with the selected building precedents was used to establish the best current practice for building envelope upgrades.MATERIAL AND METHODS: Established building precedents and identified best practice for building envelope upgrade, a high rise block of flats was identified and used as a case study, with the current and predicted, following building envelope upgrade, energy performance of the building calculated. This has allowed us to identify the possible energy efficiency improvements for this type of building following the building envelope upgrade. RESULTS: In the projected case, the building with energy class - "D" become class "B". In addition, increased quality of the living room in the attic was enabled. It was possible to obtain a decrease of the heating energy from 130.76 kWh/m²a to 37.73 kWh/m²a or to jump in the class "B" of energetic passport.CONCLUSION: This research contributes to the local implementation of the global agenda for sustainable development, design and construction, and it demonstrates the possible way and level of energy efficiency improvements to the least efficient building stock through existing building envelope upgrade.

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