Is Real Estate Liquidity Influenced by Green Hedonic Attributes? Large Sample Evidence from German Residential Markets
31 Pages Posted: 30 Sep 2017
Date Written: September 28, 2017
Environmental performance certificates constitute one of the main tools to encourage tenants, landlords and any agent in the residential sector to account for energy consumption in property transactions. This paper builds upon prior research and expands the current state of literature by investigating the green asset liquidity in terms of property’s time-on-market. Using an empirical sample of nearly 1.3 million observations in Germany and semiparametric survival models, I provide strong evidence that energy efficiency influences the marketing process of residential assets and conclude that energy inefficient assets are strongly discriminated as their counterparts.
Keywords: Real Estate Liquidity, Survival Analysis, Time-On-Market, Cox-Hazard, German Housing, Energy Performance Certificate
JEL Classification: R21, R31, C41, C55
Suggested Citation: Suggested Citation