64th ISI World Statistics Congress - Ottawa, Canada

64th ISI World Statistics Congress - Ottawa, Canada

Impact of Energy Efficiency on Housing Prices in Türkiye


Ozgul Atilgan Ayanoglu



64th ISI World Statistics Congress - Ottawa, Canada

Format: CPS Abstract

Keywords: energy efficiency, energy performance certificate, hedonic price model

Session: CPS 85 - Finance and business statistics I

Thursday 20 July 8:30 a.m. - 9:40 a.m. (Canada/Eastern)


Energy Performance Certificate has become mandatory whenever a property is built, sold or rented in Türkiye by a regulation in 2017. In accordance with this regulation, Central Bank of the Republic of Türkiye has started to gather data on energy efficiency ratings of houses from valuation reports since mid-2019. This paper aims to examine the impact of energy efficiency on house prices in Türkiye and Istanbul between 2019Q3 and 2022Q3. Results show the evidence of price premium for energy efficient houses. Using hedonic price model, it is estimated that prices of houses with high energy performance are 5.8% and 8.1% higher than price of houses with low energy performance in Türkiye and Istanbul, respectively.