%0 Conference Paper %B 25th Annual European Real Estate Society Conference %D 2018 %T Willingness or Market Power: What Induces Tenants to Pay for Energy Efficient Housing? %A Pommeranz, Carolin %A Bertram Ingolf Steininger %K Energy Efficiency %K energy performance certificates %K Green Housing %K Price Discrimination %X

In this study, we analyze whether additional payments for energy efficiency are induced by either tenants’ willingness to pay, the market power of landlords, or both. With a German housing dataset from 2011 to 2016, we identify price discrimination for the energy performance certificate using hedonic regressions in a single and double sort setting. Results indicate that a high willingness to pay -– indicated by purchasing power and environmental awareness -– leads to price discrimination effects of 7-8%. These potential extra profits can stimulate investments in energy-based refurbishments by landlords. However, additional market power of landlords –- indicated by housing market conditions –- does not amplify these discrimination effects and is therefore not exploited against tenants.

%B 25th Annual European Real Estate Society Conference %S ERES: Conference %C Reading, UK %G eng %! Conference: 2018 %& Refereed session %R 10.15396/eres2018_134