Homeowner Views on Housing Market Valuation of Energy Efficiency: An Empirical Investigation

by Lande, Caleb David

This paper investigates the relationship between energy efficiency and owner reported home value using American Housing Survey data. A hedonic price model is developed in order to isolate the impact of home energy use on the owners perceived market value of the home. In order to limit the impact of fixed housing characteristics on the model, the fixed effect regression technique is used. Empirical estimation provides evidence that homeowners feel the housing market assigns very limited value to the energy efficiency of their homes.