The value of residential energy efficiency in interior Alaska: A hedonic pricing analysis

Dominique Pride, Joseph Little, Marc Mueller-Stoffels

Research output: Contribution to journalArticlepeer-review

7 Scopus citations

Abstract

Residents of Interior Alaska are faced with a cold climate and relatively high energy prices, which results in high home energy expenditures. Increasing the energy efficiency of the housing stock can help reduce household energy expenditures. Following a spike in oil prices in 2008, legislation was passed, which created the Home Energy Rebate Program. Homeowners participating in the program were eligible to receive up to a $10,000 rebate for preapproved home energy efficiency improvements. This paper examines the effect of the Home Energy Rebate program on the selling prices of single-family residences in the Fairbanks North Star Borough from 2008 through 2015 using a hedonic pricing analysis. The results show that homes that completed the Home Energy Rebate program in the Fairbanks North Star Borough sell for a 15.1–16.5% price premium over similar homes that did not complete the program, which indicates that investments in residential energy efficiency are compensated. This is the first study to examine the impact of energy efficiency on house prices in a market with a subarctic climate.

Original languageEnglish (US)
Pages (from-to)450-460
Number of pages11
JournalEnergy Policy
Volume123
DOIs
StatePublished - Dec 2018
Externally publishedYes

Keywords

  • Alaska
  • Hedonic valuation
  • Residential energy efficiency

ASJC Scopus subject areas

  • Energy(all)
  • Management, Monitoring, Policy and Law

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