Data and code for: The Simpler the Better?

Principal Investigator(s): View help for Principal Investigator(s) Rodolfo Sejas-Portillo, London School of Economics; Mirko Moro, University of Stirling ; Till Stowasser, University of Stirling

Version: View help for Version V1

Name	File Type	Size	Last Modified
Datasets			03/29/2024 11:15:PM
0_AEJ_load_addressbase.py	text/x-python	11.2 KB	09/26/2023 06:30:AM
1_AEJ_merge_datasets.py	text/x-python	21.5 KB	09/26/2023 03:10:AM
2_AEJ_MainAnalysis.do	text/plain	110.5 KB	03/29/2024 03:28:AM
Readme.pdf	application/pdf	347.2 KB	04/04/2024 12:00:AM
log_file_aej_analysis.pdf	application/pdf	1.2 MB	03/29/2024 03:55:AM
pp_epc_sep2022.csv	text/csv	662.4 MB	03/29/2024 03:30:AM

Project Citation:

Sejas-Portillo, Rodolfo, Moro, Mirko, and Stowasser, Till . Data and code for: The Simpler the Better? Nashville, TN: American Economic Association [publisher], 2024. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2024-11-22. https://doi.org/10.3886/E193981V1

Project Description

Summary: Using British data on over 7 million residential-property sales, we find that the provision of simplified energy-efficiency (EE) information leads to important market effects. UK legislation requires the use of an energy label that shows an EE rating score (1--100) mapped into arbitrary color-coded rating bands (A--G). Applying a regression-discontinuity design, we document significant price discontinuities at rating-band thresholds, providing evidence of heuristic thinking in the market. Importantly, these price discontinuities influence market behavior as sellers are more likely to make EE investments if their property is just below a threshold. We discuss policy considerations and avenues for future research.

Scope of Project

Subject Terms: Price discontinuities; housing market; energy labels; energy efficiency; retrofitting; heuristic decision-making; threshold effects

JEL Classification:
      D12 Consumer Economics: Empirical Analysis
      D40 Market Structure, Pricing, and Design: General
      D83 Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
      D91 Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
      L15 Information and Product Quality; Standardization and Compatibility
      Q48 Energy: Government Policy
      R31 Housing Supply and Markets

Geographic Coverage: England and Wales

Time Period(s): 2012 – 2022 (July 2012 to September 2022)

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Published Versions

V1 [2024-11-22]

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