1. Green Rental Premia, Going Dutch
Prof.dr. Dirk Brounen
Tilburg University / TIAS Business School

2. Residential energy, a no-brainer
Society / government
40% of our energy use
30% of our carbon footprint
Household
€ 150 / month
20% of monthly housing charge

3. The Energy Efficiency Gap
Sustainable hesitation is due to:
Imperfect information
Bounded rationality
Cost uncertainties
Future benefits
Split incentive
Hassle

4. Bridging the Gap The case of housing
Rich literature on the energy efficiency of home owner market
Rental housing market, highly relevant / poorly documented:
- Vast markets
- Old dwellings
- Low income tenants (energy poverty)
- Split incentives
Fuerst (2015) finds in green rental premiums in Wales
Bond and Devine (2014) find similar results for U.S. multifamily homes
We contribute by:
Studying: NL, n = , unique hedonic data (NVM), t =
Using two different indicators (EPC Index and Label category)
Stratified analysis for regulated and unregulated subsamples

5. Bridging the Gap Bridging that Gap Subsample: regulated rents
Subsample: unregulated rents

6. Regression results
Our results

7. Conclusions Conclusions
Positive energy labels correlated with higher rental rates (9.7% dispersion).
These findings are robust for controls for the size, location and quality of the dwelling.
Energy efficiency is indeed capitalized into the rental rate.
In the regulated market, we find energy efficient homes are rented out at a premium
Energy efficiency seems to play no role yet in determining unregulated rental rates.

8. Communicating the sustainable facts
Bridging the Gap

9. Bridging the Gap Visit us…. www.rentalcal.eu
We help you make your effort to bridge the Energy Efficiency Gap!