The Simpler the Better? Threshold Effects of Energy Labels on Property Prices and Energy Efficiency Investments

• 成果类型: Article
• 署名作者: Sejas-portillo, Rodolfo; Moro, Mirko; Stowasser, Till
• 署名单位: University of London; London School Economics & Political Science; University of Stirling
• 刊物名称: AMERICAN ECONOMIC JOURNAL-APPLIED ECONOMICS
• ISSN/ISSBN: 1945-7782
• DOI: 10.1257/app.20220329
• 发表日期: 2025
• 页码: 41-89
• 关键词: regression discontinuity designs; optimal bandwidth choice; investor inattention; behavioral economics; limited attention; home-buyers; inference; SALIENCE; MARKET; POLICY

摘要

Using British data on over 7 million residential property sales, we find that the simplified energy efficiency ( EE ) information leads to important market effects. UK legislation requires the use of an energy label that shows an EE rating score ( 1-100 ) mapped into arbitrary color-coded rating bands ( A-G). Applying a regression discontinuity design, we document significant price discontinuities at rating band thresholds, indicating heuristic thinking in the market. These price discontinuities influence market behavior as sellers are more likely to make EE investments if their property is just below a threshold. We discuss policy considerations and avenues for future research. ( JEL D91, K32, Q48, R31)