Does energy efficiency matter to real estate-consumers? Survey evidence on willingness to pay from a cost-optimal analysis in the context of a developing country

Energy for Sustainable Development

Volumn 45, Issue , 2018, Pages 110-123

  Encinas, Felipe ^a,b   Marmolejo Duarte, Carlos ^c   Sánchez de la Flor, Francisco ^d   Aguirre, Carlos ^e  

^a PONTIFICIA UNIVERSIDAD CATÓLICA DE CHILE   (Chile)

^b Centro de Desarrollo Urbano Sustentable CONICYT FONDAP 15110020   (Chile)

^c UNIVERSITAT POLITÈCNICA DE CATALUNYA   (Spain)

^d UNIVERSITY OF CÁDIZ   (Spain)

^e UNIVERSIDAD DE LAS AMÉRICAS   (Chile)

Author keywords

Cost optimal analysis; Energy efficiency; Real estate; Willingness to pay

Indexed keywords

COMMERCE; COST ACCOUNTING; COST BENEFIT ANALYSIS; DEVELOPING COUNTRIES; ENERGY UTILIZATION; HOUSING; INVESTMENTS; SALES;

COST-OPTIMAL ANALYSE; COUNTRY ENERGIES; ENERGY PERFORMANCE; ENERGY-CONSUMPTION; EUROPEAN UNION; HIGH PRICE; OPTIMAL ANALYSIS; REAL ESTATE MARKET; REAL-ESTATES; WILLINGNESS TO PAY;

ENERGY EFFICIENCY;

COST ANALYSIS; DEVELOPING WORLD; ENERGY EFFICIENCY; EUROPEAN UNION; HOUSING MARKET; PRICE DYNAMICS; SURVEY; WILLINGNESS TO PAY;

CHILE; EUROPE; METROPOLITANA; SANTIAGO [METROPOLITANA];

EID: 85048072051     PISSN: 09730826     EISSN: 23524669     Source Type: Journal    
DOI: 10.1016/j.esd.2018.05.008     Document Type: Article

References (91)

1. 2 emission reductions in Turkey: A contingent valuation survey. Energy Policy 39 (2011), 689–698, 10.1016/j.enpol.2010.10.042.
2. Allcott, H., Taubinsky, D., Evaluating behaviorally motivated policy: Experimental evidence from the lightbulb market. The American Economic Review 105 (2015), 2501–2538, 10.1257/aer.20131564.
3. Asiedu, Y., Gu, P., Product life cycle cost analysis: State of the art review. International Journal of Production Research, 36, 1998.
4. Azar, E., Menassa, C.C., A comprehensive analysis of the impact of occupancy parameters in energy simulation of office buildings. Energy and Buildings 55 (2012), 841–853, 10.1016/j.enbuild.2012.10.002.
5. Bio Intelligence Service, Lyons, R., IEEP, Energy performance certificates in buildings and their impact on transaction prices and rents in selected EU countries. 2013.
6. Bourassa, S.C., Hamelink, F., Hoesli, M., MacGregor, B.D., Defining housing submarkets. Journal of Housing Economics 8 (1999), 160–183, 10.1006/jhec.1999.0246.
7. Bruegge, C., Carrión-Flores, C., Pope, J.C., Does the housing market value energy efficient homes? Evidence from the energy star program. Regional Science and Urban Economics, 2015, 10.1016/j.regsciurbeco.2015.12.001.
8. Bunster, V., Noguchi, M., Profiling space heating behavior in Chilean social housing: towards personalization of energy efficiency measures. Sustainability 7 (2015), 7973–7996, 10.3390/su7067973.
9. Bustamante, W., Informe N°6. Evaluación económica social, artículo 4.1.10 de la Ordenanza General de Urbanismo y Construcciones. Ministerio. Santiago. 2013.
10. Bustamante, W., Cepeda, R., Martínez, P., Santa María, H., Eficiencia energética en vivienda social: un desafío posible. Camino al Bicentenario. Propuestas para Chile. 2009, Pontificia Universidad Católica de Chile, Vicerrectoría de Comunicaciones y Asuntos Públicos, Santiago, 253–282.
11. Bustamante, W., Rozas, Y., Cepeda, R., Encinas, F., Martínez, P., Guía de Diseño para la Eficiencia Energética en la Vivienda Social. 2009, Pontificia Universidad Católica de Chile, Santiago.
12. Caldera, Sánchez A., Building blocks for a better functioning housing market in Chile. 2012, OECD Publishing, Paris, 10.1787/5k9fj3hgsnvh-en.
13. CChC, Mercado Inmobiliario - Oferta Nacional y Gran Santiago. Indicadores. http://www.cchc.cl/centro-de-informacion/indicadores/mercado-inmobiliario-oferta-nacional, 2017 (accessed October 9, 2017).
14. Celis, F., García, R., Trebilcock, M., Escorcia, O., Miotto, U., Diaz, M., Análisis energético de las viviendas del centro-sur de Chile. Arquiteturarevista 8 (2012), 62–75, 10.4013/arq.2012.81.07.
15. Chau, C.K., Tse, M.S., Chung, K.Y., A choice experiment to estimate the effect of green experience on preferences and willingness-to-pay for green building attributes. Building and Environment 45 (2010), 2553–2561, 10.1016/j.buildenv.2010.05.017.
16. Chekima, B., Syed Khalid Wafa, S.A.W., Igau, O.A., Chekima, S., Sondoh, S.L., Examining green consumerism motivational drivers: does premium price and demographics matter to green purchasing?. Journal of Cleaner Production 112 (2015), 3436–3450, 10.1016/j.jclepro.2015.09.102.
17. Collados, E., Armijo, G., Predicting the impacts of an energy refurbishing programme in Chile: More than energy savings. Mumovic, D., Santamouris, M., (eds.) A handb. sustain. build. des. eng. An integr. approach to energy, heal. oper. perform. build, First ed., 2008, Earthscan Ltd.
18. Costa, O., Fuerst, F., Robinson, S.J., da Silva, W.M., Green label signals in an emerging real estate market. A case study of Sao Paulo, Brazil. Journal of Cleaner Production 184 (2018), 660–670, 10.1016/j.jclepro.2018.02.281.
19. de Ayala, A., Galarraga, I., Spadaro, J.V., The price of energy efficiency in the Spanish housing market. Energy Policy 94 (2016), 16–24, 10.1016/j.enpol.2016.03.032.
20. DEFRA, A framework for pro-environmental behaviours. London. 2007.
21. Delzendeh, E., Wu, S., Lee, A., Zhou, Y., The impact of occupants’ behaviours on building energy analysis: A research review. Renewable and Sustainable Energy Reviews 80 (2017), 1061–1071, 10.1016/j.rser.2017.05.264.
22. Dinan, T.M., Miranowsky, J.A., Estimating the implicit price of energy efficiency improvements in the residential housing market: A hedonic approach. Journal of Building Economics 25 (1989), 52–67.
23. DITEC, Construcción Sustentable. 2013, División Técnica de Estudio y Fomento Habitacional, Ministerio de Vivienda y Urbanismo, Santiago.
24. DITEC, Calificación energética de viviendas. 2013, División Técnica de Estudio y Fomento Habitacional, Ministerio de Vivienda y Urbanismo, Santiago.
25. DITEC, Sistema de calificación energética de viviendas en Chile. 2015, División Técnica de Estudio y Fomento Habitacional, Ministerio de Vivienda y Urbanismo, Santiago.
26. Ehmke, M.D., Lusk, J.L., List, J.A., Is hypothetical bias a universal phenomenon? A multinational investigation. Land Economics 84 (2008), 489–500, 10.3368/le.84.3.489.
27. Encinas, F., Probabilistic Analysis of Passive Cooling Strategies and Occupant Behaviour for improving the summer comfort conditions in apartments of the Santiago real estate market. 2012, Presses universitaires de Louvain, Louvain-La-Neuve.
28. Encinas, F., Aguirre, C., Sustentabilidad y mercado: Aproximaciones desde la promoción inmobiliaria. ACE: Architecture, City, and Environment 12 (2017), 137–164, 10.5821/ace.12.35.5141.
29. Encinas, F., Aguirre, C., Marmolejo-Duarte, C., Sustainability attributes in real estate development: private perspectives on advancing energy regulation in a liberalized market. Sustainability, 10, 2018, 146, 10.3390/su10010146.
30. Encinas, F., De Herde, A., Definition of occupant behaviour patterns with respect to ventilation for apartments from the real estate market in Santiago de Chile. Sustainable Cities and Society 1 (2011), 38–44, 10.1016/j.scs.2010.08.005.
31. Encinas, F., De Herde, A., Sensitivity analysis in building performance simulation for summer comfort assessment of apartments from the real estate market. Energy and Buildings 65 (2013), 55–65, 10.1016/j.enbuild.2013.05.047.
32. Encinas, F., Marmolejo, C., Aguirre, C., El impacto de los proyectos inmobiliarios y sus atributos de sustentabilidad sobre el valor del suelo: ¿causa o consecuencia? Dos estudios de casos para Santiago de Chile. Rev Hábitat Sustentable 6 (2016), 70–79.
33. Environmental Design Solutions Limited, EDSL TAS. http://www.edsl.net/main/, 2016.
34. Fuerst, F., McAllister, P., Nanda, A., Wyatt, P., Final project report: An investigation of the effect of EPC ratings on house prices. 2013, Department of Energy & Climate Change, London.
35. Fuerst, F., McAllister, P.M., Nanda, A., Wyatt, P., Is energy efficiency priced in the housing market? Some evidence from the United Kingdom. SSRN Electronic Journal, 2013, 1–34, 10.2139/ssrn.2225270.
36. Fuerst, F., McAllister, P., Nanda, A., Wyatt, P., Does energy efficiency matter to home-buyers? An investigation of EPC ratings and transaction prices in England. Energy Economics 48 (2015), 145–156, 10.1016/j.eneco.2014.12.012.
37. Fuerst, F., McAllister, P., Nanda, A., Wyatt, P., Energy performance ratings and house prices in Wales: An empirical study. Energy Policy 92 (2016), 20–33, 10.1016/j.enpol.2016.01.024.
38. Fuerst, F., Shimizu, C., Green luxury gods? The economics of eco-labels in the Japanese housing market. The Journal of the Japanese and International Economics, 2016, 10.2139/ssrn.2430879.
39. García-Erviti, F., Armengot-Paradinas, J., Ramírez-Pacheco, G., El anális del coste del ciclo de vida como herramienta para la evaluación económica de la edificación sostenible. Estado de la cuestión. Inf La Construcción, 67, 2015, e056, 10.3989/ic.12.119.
40. Gelegenis, J., Diakoulaki, D., Lampropoulou, H., Giannakidis, G., Samarakou, M., Plytas, N., Perspectives of energy efficient technologies penetration in the Greek domestic sector, through the analysis of energy performance certificates. Energy Policy 67 (2014), 56–67, 10.1016/j.enpol.2013.09.051.
41. Giannakopoulou, S., Xypolitakou, E., Damigos, D., Kaliampakos, D., How visitors value traditional built environment? Evidence from a contingent valuation survey. Journal of Cultural Heritage 24 (2017), 157–164, 10.1016/j.culher.2016.11.004.
42. Gillingham, K., Newell, R.G., Palmer, K., Energy efficiency economics and policy. Annual Review of Resource Economics 1 (2009), 597–620, 10.1146/annurev.resource.102308.124234.
43. Gillingham, K., Palmer, K., Bridging the energy efficiency gap: policy insights from economic theory and empirical evidence. Review of Environmental Economics and Policy 8 (2014), 18–38, 10.1093/reep/ret021.
44. Guo, X., Liu, H., Mao, X., Jin, J., Chen, D., Cheng, S., Willingness to pay for renewable electricity: A contingent valuation study in Beijing, China. Energy Policy 68 (2014), 340–347, 10.1016/j.enpol.2013.11.032.
45. Hong, T., Yan, D., D'Oca, S., Chen, C. Fei, Ten questions concerning occupant behavior in buildings: The big picture. Building and Environment 114 (2017), 518–530, 10.1016/j.buildenv.2016.12.006.
46. Hyland, M., Lyons, R.C., Lyons, S., The value of domestic building energy efficiency - Evidence from Ireland. Energy Economics 40 (2013), 943–952, 10.1016/j.eneco.2013.07.020.
47. ISO 13790, Energy performance of buildings - Calculation of energy use for space heating and cooling. 2008, International Organization for Standardization, Geneve.
48. Jansen, S., Chapter 5. The multi-attribute utility method. Jansen, S., Coolen, H., Goetgeluk, R., (eds.) Meas. Anal. Hous. Prefer. Choice, 2011, 101–125, 10.1007/978-90-481-8894-9.
49. Kahn, M.E., Kok, N., The capitalization of green labels in the California housing market. Regional Science and Urban Economics 47 (2013), 25–34, 10.1016/j.regsciurbeco.2013.07.001.
50. Kavgic, M., Mavrogianni, a., Mumovic, D., Summerfield, a., Stevanovic, Z., Djurovic-Petrovic, M., A review of bottom-up building stock models for energy consumption in the residential sector. Building and Environment 45 (2010), 1683–1697, 10.1016/j.buildenv.2010.01.021.
51. Kwak, S.Y., Yoo, S.H., Kwak, S.J., Valuing energy-saving measures in residential buildings: A choice experiment study. Energy Policy 38 (2010), 673–677, 10.1016/j.enpol.2009.09.022.
52. Lancaster, K.J., A new approach to consumer theory. Journal of Political Economy, 74, 1966, 132, 10.1086/259131.
53. Lee, C.-Y., Heo, H., Estimating willingness to pay for renewable energy in South Korea using the contingent valuation method. Energy Policy 94 (2016), 150–156, 10.1016/j.enpol.2016.03.051.
54. List, J.A., Gallet, C.A., What experimental protocol influence disparities between actual and hypothetical stated values?. Environmental and Resource Economics 20 (2001), 241–254, 10.1023/A:1012791822804.
55. Liu, F., Meyer, A.S., Hogan, J.F., Mainstream Building Energy Efficiency Codes in Developing Countries. Global Experiencies and Lessons from Early Adopters. World Bank. 2010, The International Bank for Reconstruction and Development/The World Bank, Washington D.C.
56. Longo, A., Markandya, A., Petrucci, M., The internalization of externalities in the production of electricity: Willingness to pay for the attributes of a policy for renewable energy. Ecological Economics 67 (2008), 140–152, 10.1016/j.ecolecon.2007.12.006.
57. López-Morales, E., Gasic Klett, I., Meza, Corvalán D., Urbanismo proempresarial en Chile: Políticas y planificación de la producción residencial en el altura en el pericentro del Gran Santiago. Revista INVI 27 (2012), 75–114.
58. Marmolejo-Duarte, C., La incidencia de la calificación energética sobre los valores residenciales: un análisis para el mercado plurifamiliar en Barcelona. Informes de la Construcción, 68, 2016, e156, 10.3989/ic.16.053.
59. Marmolejo-Duarte, C., Bravi, M., Does the energy label (EL) matter in the residential market? A stated preference analysis in Barcelona. Buildings, 7, 2017, 53, 10.3390/buildings7020053.
60. Marmolejo-Duarte, C., García-Hoohghuis, A., García-Masiá A., How much does the energy class of our dwellings matter to us? An analysis of the level of understanding of EPCs, willingness to pay and reasons for payment in Barcelona. Rev Hábitat Sustentable 7 (2017), 54–65, 10.22320/07190700.2017.07.01.06.
61. Mercer, Lippincott, Serving the climate-change-conscious consumer. Summary report based on consumer research in the UK and US. 2006.
62. Ministerio de Vivienda y Urbanismo, Tomo II: Energía. 2016.
63. Ministerio de Vivienda y Urbanismo, Informe Técnico Sistema de Calificación Energética de Viviendas. http://www.calificacionenergetica.cl/media/Informe-Técnico-enero-2017.pdf, 2017 (accessed October 24, 2017).
64. MINVU, Política Nacional de Desarrollo Urbano. Ciudades Sustentables y Calidad de Vida. 2014, Ministerio de Vivienda y Urbanismo [Ministry of Housing and Urban Planning], Santiago.
65. MINVU, NTM 011/2 2014 Anteproyecto - Requisitos y mecanismos de acreditación para acondicionamiento ambiental de las edificaciones. Parte 2: Comportamiento higrotémico. 2014, Ministerio de Vivienda y Urbanismo [Ministry of Housing and Urban Planning], Santiago.
66. MINVU, Ordenanza General de Urbanismo y Construcciones. 2016, Ministerio de Vivienda y Urbanismo [Ministry of Housing and Urban Planning], Santiago.
67. MINVU, Estándares de Construcción Sustentable para Viviendas de Chile. Tomo II Energía. 2016, Ministerio de Vivienda y Urbanismo [Ministry of Housing and Urban Planning], Santiago.
68. Mitchell, R., Carson, R., Using surveys to value public goods: The Contingent Valuation method. 1989, Resources for the Future, Washington, D.C.
69. National Oceanic and Atmospheric Administration, Natural Resource Damage Assessment: Proposed Rules. Washington, D.C. 1994.
70. National Oceanic and Atmospheric Administration, Natural Resource Damage Assessment: Final Rules. Washington, D.C. 1996.
71. Official Journal of the European Union, Directive 2002/91/EC of the European Parliament and of the Council of 16 December 2002 on the energy performance of buildings. 2003, 65–71.
72. Official Journal of the European Union, Directive 2010/31/EU of the European Parliament and of the Council of 19 May 2010 on the energy performance of buildings (recast). 2010, 13–35.
73. Official Journal of the European Union, Commission Delegated Regulation (EU) No 244/2012 of 16 January 2012 supplementing Directive 2010/31/EU of the European Parliament and of the Council on the energy performance of buildings by establishing a comparative methodology framework for calculating. 2012.
74. Park, M., Hagishima, A., Tanimoto, J., Chun, C., Willingness to pay for improvements in environmental performance of residential buildings. Building and Environment 60 (2013), 225–233, 10.1016/j.buildenv.2012.10.017.
75. Pérez-Lombard, L., Ortiz, J., González, R., Maestre, I.R., A review of benchmarking, rating and labelling concepts within the framework of building energy certification schemes. Energy and Buildings 41 (2009), 272–278, 10.1016/j.enbuild.2008.10.004.
76. Portalinmobiliario.com, Tu hogar está aquí. 2017, departamentos en arriendo y venta, Casas http://www.portalinmobiliario.com/. (Accessed 27 October 2017)
77. Riera, P., Manual de Valoración Contingente. 1994, Ministerio de Economía y Hacienda, Instituto de Estudios Fiscales, Madrid.
78. Rioseco, R., Tesser, C., Cartografía Interactiva de los climas de Chile [en línea]. 2017, Inst Geogr Pontif Univ Católica Chile http://www7.uc.cl/sw_educ/geografia/cartografiainteractiva/. (Accessed 9 October 2017)
79. Romano, K.R., Dias Bartolomeu Abadio, Finco F., Rosenthal, A., Vinicius Alves, Finco M., Deliza, R., Willingness to pay more for value-added pomegranate juice (Punica granatum L.): An open-ended contingent valuation. Food Research International 89 (2016), 359–364, 10.1016/j.foodres.2016.08.039.
80. Santin, O.G., Behavioural patterns and user profiles related to energy consumption for heating. Energy and Buildings 43 (2011), 2662–2672, 10.1016/j.enbuild.2011.06.024.
81. Savage, M., Warde, A., Ward, K., Urban sociology, capitalism and modernity. Second ed, 2003, Palgrave Macmillan.
82. Shi, L., Gao, Z., Chen, X., The cross-price effect on willingness-to-pay estimates in open-ended contingent valuation. Food Policy 46 (2014), 13–21, 10.1016/j.foodpol.2014.01.009.
83. Sundt, S., Rehdanz, K., Consumers ’ willingness to pay for green electricity: A meta-analysis of the literature. Energy Economics 51 (2015), 1–8, 10.1016/j.eneco.2015.06.005.
84. UNE-EN15459, Energy performance of buildings - Economic evaluation procedure for energy systems in buildings. 2008, European Committee for Standardization, Brussels.
85. Wu, C., Sharma, R., Housing submarket classification: The role of spatial contiguity. Applied Geography 32 (2012), 746–756, 10.1016/j.apgeog.2011.08.011.
86. Yoshino, H., Hong, T., Nord, N., IEA EBC annex 53: Total energy use in buildings—Analysis and evaluation methods. Energy and Buildings 152 (2017), 124–136, 10.1016/j.enbuild.2017.07.038.
87. Young, W., Hwang, K., McDonald, S., Oates, C.J., Sustainable consumption: Green consumer behaviour when purchasing products. Sustainable Development 18 (2010), 20–31, 10.1002/sd.394.
88. Zalejska-Jonsson, A., Stated WTP and rational WTP: Willingness to pay for green apartments in Sweden. Sustainable Cities and Society 13 (2014), 46–56, 10.1016/j.scs.2014.04.007.
89. Zhang, L., Wu, Y., Market segmentation and willingness to pay for green electricity among urban residents in China: The case of Jiangsu Province. Energy Policy 51 (2012), 514–523, 10.1016/j.enpol.2012.08.053.
90. Zhou, H., Bukenya, J.O., Information inefficiency and willingness-to-pay for energy-efficient technology: A stated preference approach for China Energy Label. Energy Policy 91 (2016), 12–21, 10.1016/j.enpol.2015.12.040.
91. Zoric, J., Hrovatin, N., Household willingness to pay for green electricity in Slovenia. Energy Policy 47 (2012), 180–187, 10.1016/j.enpol.2012.04.055.