Energy performance certificates impact on rent prices in the Czech Republic: Two-stage least squares approach
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F60460709%3A41110%2F25%3A103666" target="_blank" >RIV/60460709:41110/25:103666 - isvavai.cz</a>
Result on the web
<a href="https://www.sciencedirect.com/science/article/pii/S2405844025008862" target="_blank" >https://www.sciencedirect.com/science/article/pii/S2405844025008862</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1016/j.heliyon.2025.e42506" target="_blank" >10.1016/j.heliyon.2025.e42506</a>
Alternative languages
Result language
čeština
Original language name
Energy performance certificates impact on rent prices in the Czech Republic: Two-stage least squares approach
Original language description
The European Union (EU) has identified the building sector to address reduction in energy consumption, with buildings operation contributing close to half of total energy use in the EU. To address this, various EU member states, including the Czech Republic, have implemented energy efficiency subsidy programs. The Czech real estate sector plays a significant role in the economy, contributing close to a tenth of the country's GDP, yet the impact of energy efficiency on rental prices remains underexplored. This study investigates the relationship between energy performance certificates (EPCs) and apartment rental prices in the Czech Republic. Using a revised and cleaned dataset of over 30,000 rental observations scraped from the largest Czech real estate portal, we analyze rental prices across three categories of apartment conditions: newly built units, renovated units, and units in good condition without major renovations. Employing a two-stage least squares (2SLS) regression approach to account for endogeneity, the results reveal a significant positive relationship between energy efficiency and rental prices, consistent across all models. Newly built units show the highest premium for energy efficiency, while renovated and good-condition units demonstrate a larger decrease of premiums respectively. Regional GDP, heating type, ownership structure, and building amenities also significantly influence rental prices. The findings align with trends observed in other European markets and underscore the economic and environmental benefits of energy-efficient housing.
Czech name
Energy performance certificates impact on rent prices in the Czech Republic: Two-stage least squares approach
Czech description
The European Union (EU) has identified the building sector to address reduction in energy consumption, with buildings operation contributing close to half of total energy use in the EU. To address this, various EU member states, including the Czech Republic, have implemented energy efficiency subsidy programs. The Czech real estate sector plays a significant role in the economy, contributing close to a tenth of the country's GDP, yet the impact of energy efficiency on rental prices remains underexplored. This study investigates the relationship between energy performance certificates (EPCs) and apartment rental prices in the Czech Republic. Using a revised and cleaned dataset of over 30,000 rental observations scraped from the largest Czech real estate portal, we analyze rental prices across three categories of apartment conditions: newly built units, renovated units, and units in good condition without major renovations. Employing a two-stage least squares (2SLS) regression approach to account for endogeneity, the results reveal a significant positive relationship between energy efficiency and rental prices, consistent across all models. Newly built units show the highest premium for energy efficiency, while renovated and good-condition units demonstrate a larger decrease of premiums respectively. Regional GDP, heating type, ownership structure, and building amenities also significantly influence rental prices. The findings align with trends observed in other European markets and underscore the economic and environmental benefits of energy-efficient housing.
Classification
Type
J<sub>SC</sub> - Article in a specialist periodical, which is included in the SCOPUS database
CEP classification
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OECD FORD branch
50202 - Applied Economics, Econometrics
Result continuities
Project
—
Continuities
S - Specificky vyzkum na vysokych skolach
Others
Publication year
2025
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
Heliyon
ISSN
2405-8440
e-ISSN
2405-8440
Volume of the periodical
11
Issue of the periodical within the volume
4
Country of publishing house
US - UNITED STATES
Number of pages
23
Pages from-to
—
UT code for WoS article
—
EID of the result in the Scopus database
2-s2.0-85217957300