Better energy cost information changes household property investment decisions: Evidence from a nationwide experiment

With buildings accounting for roughly 40 % of energy consumption in the US and Europe, energy efficiency upgrades will be central in meeting climate targets. Using a nationwide controlled field experiment, we find that the inclusion of property-specific energy cost labels within property advertisements increases energy efficiency premiums. We also show that more energy efficient properties sell faster and, for the first time, that energy cost labels shortened time-to-sell. While a major departure from existing property labelling policy, these results suggest that framing property energy efficiency according to their cost implications, rather than in energy units, increases the demand for energy efficiency. • First paper to conduct a large controlled field trial for residential properties covering an entire nationwide market. • Results indicate inclusion of property-specific energy cost labels within advertisements increasesefficiency premiums. • More energy efficient properties sell faster, and energy cost labels shorten time-to-sell. • Framing property energy efficiency in terms of energy costs rather than energy units may increase demand for efficiency.