• 4 minutes Pompeo: Aramco Attacks Are An "Act Of War" By Iran
  • 7 minutes Who Really Benefits From The "Iran Attacked Saudi Arabia" Narrative?
  • 11 minutes Trump Will Win In 2020
  • 15 minutes Experts review Saudi damage photos. Say Said is need to do a lot of explaining.
  • 7 hours Ethanol is the SAVIOR of the Oil Industry, Convenience Store Industry, Automotive Supply Chain Industry and Much More!
  • 1 hour Ethanol, the Perfect Home Remedy for A Saudi Oil Fever
  • 6 hours Instagram Now Banning Photos Of People At Gun Ranges, Claiming They Promote "Violence"
  • 2 hours Let's shut down dissent like The Conversation in Australia
  • 2 hours Pepe Escobar: “How The Houthis Overturned The Chessboard”
  • 12 hours Famous Manufacturer of Anti-Ethanol Additives Proves Ethanol's Safety and Benefits
  • 18 hours Collateral Damage: Saudi Disruption Leaves Canada's Biggest Refinery Vulnerable
  • 1 day Hong Kong protesters appeal to Trump for support.
  • 1 day Saudi State-of-Art Defense System looking the wrong way. MBS must fire Defense Minister. Oh, MBS is Defense Minister. Forget about it.
  • 14 hours Trump Accidentally Discusses Technology Used In The Border Wall
  • 10 hours US and China are already in a full economic war and this battle for global hegemony is a little bit frightening
  • 15 hours One of the fire satellite pictures showed what look like the fire hit outside the main oil complex. Like it hit storage or pipeline facility. Not big deal.
James Burgess

James Burgess

James Burgess studied Business Management at the University of Nottingham. He has worked in property development, chartered surveying, marketing, law, and accounts. He has also…

More Info

By How Much Does a Green Label Increase the Value of a House?

Do ‘green’ houses with energy saving features actually sell for more than houses without?

A new economic study by professors Matthew E. Kahn of UCLA and Nils Kok of Maastricht University in the Netherlands looked at the sale of 1.6 million houses in California from 2007 to 2012 to try and determine the effect a ‘green’ label has on the prices of a house.

They found that a green certificate on average adds about nine percent to the sale price of a house, and that buyers in areas with lots of hybrid cars (presumably indicating an affinity to environmentally friendly products) will pay higher premiums for ‘green’ houses, than people from areas with fewer hybrid vehicles.

No correlation was found between willingness to pay the premium and the local areas utility rates. In other words they did not think of paying more for the house in order to reduce energy bills in an area with high utility rates.

The nine percent premium that the study found is similar to the premium found in European studies. Energy efficient houses in Europe are far more common, and a house rated ‘A’ by the EU can expect an average premium of ten percent added to the value of the property.

In the US the National Association of Realtors has fought the adoption of any form of mandatory energy efficiency rating scheme, claiming that such a system could have negative effects in the market; possibly afraid of the negative impacts on sale values for houses that are energy inefficient.

On the other hand, the National Association of Home Builders is all for the scheme, believing that it will offer a selling advantage to newly constructed houses.

By. James Burgess of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play