TY  - JOUR
TI  - Does Energy Performance Rating Affect Office
Rents? A Study of the UK Office Market
SN  - 1949-8276
Y1  - 2024/06/11/
AV  - public
N2  - Environmental concerns and the rise in energy costs have heightened the focus on reducing CO2 emissions within the built environment. By concentrating on the office market in the UK, where a significant portion of a service-based economy operates, progress towards achieving emission reduction goals could be accelerated. Nevertheless, the speed at which this sector can enhance its environmental impact and whether individuals are willing to invest in energy-efficient measures and new energy-efficient buildings has remained uncertain. This paper investigates the influence of varying Energy Performance Certificate (EPC) ratings on the rental rates of office buildings in the UK, drawing on an extensive dataset spanning the years of 2011?2021. Our research seeks to determine whether there exists a willingness to pay for more energy-efficient office spaces by assessing whether there is a rental premium associated with office building with higher EPC ratings. Furthermore, we examine whether buildings failing to meet minimum energy efficiency standard (defined as EPC ratings of F and G) experience rental discounts. Our findings, which take into account heteroscedasticity and various disaggregations within the office market, consistently reveal a willingness to pay for energy-efficient office spaces.
UR  - https://doi.org/10.1080/19498276.2024.2356715
ID  - discovery10193353
N1  - This version is the author accepted manuscript. For information on re-use, please refer to the publisher?s terms and conditions.
KW  - EPCenergy efficiency rating
KW  -  office building
KW  -  rent premium/discount
KW  -  minimum energy efficiency standard (MEES)UK
JF  - Journal of Sustainable Real Estate
A1  - Ke, Qiulin
ER  -