Evidence of rational market valuations for home energy efficiency Report as inadecuate




Evidence of rational market valuations for home energy efficiency - Download this document for free, or read online. Document in PDF available to download.

Abstract

According to this study, residential real estate markets assign to energy-efficient homes an incremental value that reflects the discounted value of annual fuel savings. The capitalization rate used by homeowners was expected to be4%-10%, reflecting the range of after-tax mortgage interest rates during the 1990s and resulting in an incremental home value of $10 to around $25 for every $1 reduction in annual fuel bills. Regression analysis of American Housing Surveydata confirms this hypothesis for national and metropolitan area samples, attached and detached housing, and detached housing subsamples using a specific fuel type as the main heating fuel.



Item Type: MPRA Paper -

Original Title: Evidence of rational market valuations for home energy efficiency-

Language: English-

Keywords: Energy; Housing-

Subjects: Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4 - Energy > Q43 - Energy and the Macroeconomy-





Author: Nevin, Rick

Source: https://mpra.ub.uni-muenchen.de/35343/







Related documents