Investments in energy efficiency


The real estate sector holds a key position in energy and climate policy, as it accounts for 32% of global final energy use, 19% of energy-related CO2 emissions, and 51% of global electricity consumption. In order to address the vital issue of climate change, political decision-makers have introduced several energy policies – e.g. the Energy Performance Certificate (EPC) of the European Union in 2002 – in order to meet the targets of reducing buildings’ energy consumption as well as CO2 emissions.

With energy costs rising steadily, the interest in energy efficiency and in the role of EPCs in the real estate market has been growing considerably over the past decades. However, the impact of energy efficiency on real estate decision-making and price negotiation is still limited and differs between real estate owner-occupiers, landlords and tenants. In order to strengthen the impact of energy efficiency on real estate decision-making, the economic and ecological benefits have to be further examined on an empirical base by applying different methodologies (revealed vs. stated preferences, the latter either directly by contingent valuation method or indirect by decompositional approaches i.e. conjoint analyses).


Franke, M./Nadler, C. (2019): Energy efficiency in the German residential housing market: Its influence on tenants and owners, in: Energy Policy 128, 879-890. DOI:



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