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Effects of rooftop solar on housing prices in Australia

Best, Rohan; Burke, Paul; Nepal, Rabindra; Reynolds, Zac

Description

Hedonic models of housing prices face the risk of omitted variable bias due to the challenge of controlling for all relevant property attributes. The level of household financial assets is a key but underexplored control that may help to account for some of these difficult-to-observe property characteristics. Using large Australian household surveys, we find that controlling for household financial assets reduces the observed effect of having solar photovoltaic panels on housing prices. The...[Show more]

dc.contributor.authorBest, Rohan
dc.contributor.authorBurke, Paul
dc.contributor.authorNepal, Rabindra
dc.contributor.authorReynolds, Zac
dc.date.accessioned2021-07-12T23:35:43Z
dc.identifier.citationBest, Rohan, Burke, Paul J., Nepal, Rabindra, and Reynolds, Zac. 2021. Effects of rooftop solar on housing prices in Australia. Australian Journal of Agricultural and Resource Economics 65(3), 493–511.
dc.identifier.issn1364-985X
dc.identifier.urihttp://hdl.handle.net/1885/240416
dc.description.abstractHedonic models of housing prices face the risk of omitted variable bias due to the challenge of controlling for all relevant property attributes. The level of household financial assets is a key but underexplored control that may help to account for some of these difficult-to-observe property characteristics. Using large Australian household surveys, we find that controlling for household financial assets reduces the observed effect of having solar photovoltaic panels on housing prices. The elasticity of estimated housing price with respect to solar capacity is 0.09 for households with solar panels. Controlling for financial assets may be of use in other studies seeking to estimate the effect of home additions on housing prices.
dc.format.mimetypeapplication/pdf
dc.language.isoen_AU
dc.publisherWiley
dc.rights© 2021 Australasian Agricultural and Resource Economics Society Inc.
dc.sourceAustralian Journal of Agricultural and Resource Economics
dc.subjectfinancial assets
dc.subjecthedonic pricing
dc.subjecthousing
dc.subjectlocation
dc.subjectsolar
dc.titleEffects of rooftop solar on housing prices in Australia
dc.typeJournal article
local.description.notesA pre-print version is available here: https://ccep.crawford.anu.edu.au/publication/ccep-working-paper/18692/effects-rooftop-solar-housing-prices-australia
local.identifier.citationvolume65
dc.date.issued2021-05
local.identifier.absfor140205 - Environment and Resource Economics
local.publisher.urlhttps://www.wiley.com/en-gb
local.type.statusAccepted Version
local.contributor.affiliationBurke, P. J., College of Arts and Social Sciences, The Australian National University
local.description.embargo2023-05-30
local.identifier.essn1467-8489
local.bibliographicCitation.issue3
local.bibliographicCitation.startpage493
local.bibliographicCitation.lastpage511
local.identifier.doi10.1111/1467-8489.12431
local.identifier.absseo850504 - Solar-Photovoltaic Energy
dcterms.accessRightsOpen Access
dc.provenancehttps://v2.sherpa.ac.uk/id/publication/4749..."The Accepted Version can be archived in a Non-Commercial Institutional Repository. 24 months embargo." from SHERPA/RoMEO site (as at 13/07/2021). This is the peer reviewed version of the following article: [Best, Rohan, et al. "Effects of rooftop solar on housing prices in Australia." Australian Journal of Agricultural and Resource Economics (2021).], which has been published in final form at [https://dx.doi.org/10.1111/1467-8489.12431]. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions
CollectionsANU Research Publications

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