Alecia Cassidy presents "How does mandatory energy efficiency disclosure affect housing prices?"

Thursday, September 07, 2017
11:30 AM to 1:00 PM
Lorch Hall, 611 Tappan Street, Ann Arbor, MI 48109

Energy & Environmental Economics Fall 2017 Seminar Series welcomes Alecia Cassidy.  She will present ""How does mandatory energy efficiency disclosure affect housing prices?"

Thursday, September 7th 11:30am-1:00pm

Lorch Hall, 611 Tappan Street

ABSTRACT
Energy efficiency disclosure is an increasingly popular policy tool that has the potential to address market failures due to imperfect information in housing markets, yet there is little evidence that these policies increase capitalization of energy efficiency. This paper examines the effects of a mandatory energy efficiency disclosure policy on housing prices in Austin, TX. I find that the policy increased capitalization of energy efficiency features, and that the increase was larger for features that were more difficult to observe before the policy. The results highlight the important role of mandated transparency policies in increasing the returns to energy efficiency investments by homeowners.