Energy Price Shocks and the Demand for Energy-Efficient Housing: Evidence from Russia's Invasion of Ukraine

Arbeitspapier

How do private consumers adapt to changes to energy prices, in particular do they invest in energy-saving measures? We study this question in the context of the rapid rise in energy prices caused by the Russian invasion of Ukraine in February 2022 and the demand for energy efficiency in the UK housing market. We find that the housing market barely reacted to a 60% increase in the price of energy. This finding holds in multiple contexts and across various robustness checks. Supplementary survey evidence suggests that people believe the energy price increases are temporary, not permanent.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 15959

Classification and Topics

• Classification: Wirtschaft ; Hydrocarbon Resources ; Energy: Demand and Supply; Prices ; Valuation of Environmental Effects ; Housing Supply and Markets
• Subject: gas prices ; energy efficiency ; property markets

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Braakmann, Nils ; Dursun, Bahadir ; Pickard, Harry
• Event: Veröffentlichung
• (who): Institute of Labor Economics (IZA)
• (where): Bonn
• (when): 2023

Further information

• Handle: http://hdl.handle.net/10419/272586
• Last update: 10.03.2025, 11:44 AM CET