Adi Maimun, N H (2016) Price and rent effects of energy efficiency in residential properties: evidence from the Belfast Metropolitan area. PhD thesis, Ulster University, UK.
Abstract
The core response to the Kyoto protocol policy is reflected in the Energy Performance of Building Directives due to the recognition of built environment as being one of the major contributors to the global Greenhouse Gases emission. In Europe, the Energy Performance Certificate (EPC) has become a mandatory requirement for all buildings including dwelling stocks. The perceived benefits of sustainable buildings have resulted in increased interest in measuring the implicit price and rent impacts of green/energy labels. However, the relationship between energy performance and residential property remains under-researched, geographically diverse, and inhibited by a paucity of data. This research aims to establish whether there is a green premium associated with residential buildings within the Belfast Metropolitan Area. Hedonic pricing models are used to establish the complex relationship between property characteristics, energy performance ratings, and green features. The study has assembled 6,671 and 3,928 datasets consisting of property characteristics for sales and rental markets respectively from quarter one 2013 to quarter two 2014. Modelling techniques are specified in linear, semi-log, and price/rent per square metre to measure the implicit prices and rents of energy performance ratings in monetary, percentage, and monetary/percentage per square metre respectively. The resu Its illustrate evidence of a green premium effect. Using EPC scores as a measure of energy efficiency, an additional price of £435 or 0.3% or £4.32 psm per EPC score was evidenced for the owner- occupied market. Meanwhile, a premium of £1.39 or 0.2% or £0.02 psm per EPC score was observed for the private-rented market. Comparative models with banded EPC scores illustrated increased premium from energy inefficient to efficient houses. The largest magnitude of increase was observed for B rated houses (compared to D rated houses) with 26% and 16% of premiums observed in the owneroccupied and private-rented market respectively. Nonetheless, the premium is complicated by the heterogeneity of the existing property stock. Diminishing premium effect observed for new houses reflect no-bid factor for sustainability as they were assumed integrated into the houses by the market. In addition, the analysis suggested the potential for retrofitting of dwellings with existing low energy performance. In particular, the results from this thesis suggest that thermal features should be prioritised in retrofit measures. Specifically, current policies should target to improve energy efficiency of stocks through double-glazed windows, floor insulation, roof insulation, and wall insulation.
| Item Type: | Thesis (Doctoral) |
|---|---|
| Uncontrolled Keywords: | built environment; markets; performance; policy; pricing; rental market; residential; sustainable building; market; energy performance; Europe |
| Index terms: | retrofitting, greenhouse gas, dataset, evidence, window, sustainable building, rental market, insulation, roof, energy performance, markets, modelling, energy performance certificate, built environment, energy labels, owner, residential property, Europe, low energy, green feature, pricing, energy efficiency, residential building |
| Subjects: | building materials, sustainability and energy, energy systems, renovation and retrofit, design practice, data management, sociology, infrastructure and transport systems, evaluation and assessment methods, construction type, climate science, analytical methods, economic analysis, architectural elements, physical geography and landforms, sustainable design, sustainable construction |
| Topics: | Urban Studies, Digital Applications, Design Practice, Research Practice, Business Strategy, Construction Technology, Stakeholder Management, Engineering Principles, Geographical Context, Sustainability |
| Descriptive scope: | 3 PCA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here