Energy Performance Certification in the Housing Market Implementation and Valuation in the European Union

In this paper, we analyze the adoption and effects of energy performance certification in Europe. We use the Dutch housing market as a laboratory, with a unique data set that covers more than 100,000 dwelling transactions in 2008. Our results show that when energy certification is not mandatory, adoption rates are low and clustered among young, well-kept single-family dwellings, located in regions where competition among buyers is low. Tracking the transaction process of the certified dwellings in our sample, we find a significant price premium for green energy labels. This analysis is robust to the inclusion of various dwelling characteristics, including quality of isolation and maintenance of the interior. Our results provide a first indication that consumers recognize the added value of buying an energy-efficient home