eprintid: 10193353 rev_number: 7 eprint_status: archive userid: 699 dir: disk0/10/19/33/53 datestamp: 2024-06-12 15:17:47 lastmod: 2024-06-12 15:17:47 status_changed: 2024-06-12 15:17:47 type: article metadata_visibility: show sword_depositor: 699 creators_name: Ke, Qiulin title: Does Energy Performance Rating Affect Office Rents? A Study of the UK Office Market ispublished: pub divisions: UCL divisions: B04 divisions: C04 divisions: F39 keywords: EPCenergy efficiency rating, office building, rent premium/discount, minimum energy efficiency standard (MEES)UK note: This version is the author accepted manuscript. For information on re-use, please refer to the publisher’s terms and conditions. abstract: 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. date: 2024-06-11 date_type: published official_url: https://doi.org/10.1080/19498276.2024.2356715 oa_status: green full_text_type: pub language: eng primo: open primo_central: open_green verified: verified_manual elements_id: 2284648 doi: 10.1080/19498276.2024.2356715 lyricists_name: Ke, Qiulin lyricists_id: QKEXX02 actors_name: Ke, Qiulin actors_id: QKEXX02 actors_role: owner full_text_status: public publication: Journal of Sustainable Real Estate issn: 1949-8276 citation: Ke, Qiulin; (2024) Does Energy Performance Rating Affect Office Rents? A Study of the UK Office Market. Journal of Sustainable Real Estate 10.1080/19498276.2024.2356715 <https://doi.org/10.1080/19498276.2024.2356715>. Green open access document_url: https://discovery.ucl.ac.uk/id/eprint/10193353/1/Does%20Energy%20Performance%20Rating%20Affect%20Office%20Rents%20%20A%20Study%20of%20the%20UK%20Office%20Market.pdf