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An income-based analysis of the value premise for property energy performance
- Source :
- Energy. 106:162-169
- Publication Year :
- 2016
- Publisher :
- Elsevier BV, 2016.
-
Abstract
- There is a body of literature that has given some empirical support to the notion that energy efficient buildings may be associated with significant financial premiums. However, such evidence is not entirely conclusive and may be confounded by an associated workplace quality factor. In light of the perceived lack of clarity within this body of literature to provide empirical support to the existence of financial premiums for building energy performance, this research aims to explore the potential financial value of property energy performance through the application of futures studies to income-based valuations. This is addressed through applying exploratory scenario descriptions of the UK energy system to the valuation of 24 commercial offices. In doing so, every opportunity is given to identify the significance of property energy performance to financial value. The results of this research demonstrate how, even when exploring an extreme set of diverse energy-system futures and accounting for the social costs of climate change, the potential of financial premiums for energy efficient property are not of the same order of magnitude as those observed in the literature. These differences may be explained by confounding associations between such labels and overall facility quality, or by short-term market sentiment.
- Subjects :
- Actuarial science
020209 energy
Mechanical Engineering
0211 other engineering and technologies
021107 urban & regional planning
02 engineering and technology
Building and Construction
Pollution
Industrial and Manufacturing Engineering
law.invention
Microeconomics
Futures studies
General Energy
Empirical research
law
0202 electrical engineering, electronic engineering, information engineering
CLARITY
Economics
Capital asset pricing model
Electrical and Electronic Engineering
Market sentiment
Futures contract
Civil and Structural Engineering
Valuation (finance)
Efficient energy use
Subjects
Details
- ISSN :
- 03605442
- Volume :
- 106
- Database :
- OpenAIRE
- Journal :
- Energy
- Accession number :
- edsair.doi...........49e14b798c78e64ffe39d3ce6d9637d1