PT  - JOURNAL ARTICLE
AU  - Makram El-Shagi
AU  - Claus Michelsen
AU  - Sebastian Rosenschon
TI  - Empirics on the Long-Run Effects of Building Energy Codes in the Housing Market
AID  - 10.3368/le.93.4.585
DP  - 2017 Nov 01
TA  - Land Economics
PG  - 585--607
VI  - 93
IP  - 4
4099  - http://le.uwpress.org/content/93/4/585.short
4100  - http://le.uwpress.org/content/93/4/585.full
SO  - Land Econ2017 Nov 01; 93
AB  - We study the effectiveness of building energy codes, taking a long-run perspective. The focus is on regulation’s impact on energy demand in both high- and low-quality residences, in other words, the diffusion and the entry of “green” buildings in the housing market. We develop a measure for regulation intensity and apply this to a panel-error-correction regression model for energy requirements of a large sample of German apartment houses built between 1950 and 2005. We show that regulation is effective in saving energy. In particular, regulation pushes investors in the low-quality housing market segment toward the technological frontier. Indirectly, it also affects the high-quality segment. (JEL Q41, R52)