The energy efficiency price premium of residential buildings in three Italian regions

The aim of this paper is to investigate the relationship between energy efficiency of residential buildings and house market prices in Italy. We employ novel, and almost unexploited, data on Energy Performance Certificates of three Italian regions (Emilia-Romagna, Lombardy and Piedmont) and merge them with house prices as well as socio-economic and climate variables at various aggregation levels. The relationship is estimated by means of hedonic regression models, quantile regressions and fixed effects panel data models. Our results reveal the existence of an energy-efficiency price premium in the three regions, with significant differences among them. Heterogeneity is also detected along the price distribution. Relevant variables showing a positive association with price are more recent construction years, higher mobility in the housing market and higher income within municipalities, while heat waves are associated with lower prices.