Effects of rooftop solar on housing prices in Australia

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 charac...

Full description

Saved in:
Bibliographic Details
Published in:The Australian journal of agricultural and resource economics 2021-07, Vol.65 (3), p.493-511
Main Authors: Best, Rohan, Burke, Paul J., Nepal, Rabindra, Reynolds, Zac
Format: Article
Language:English
Subjects:
Assets
Bias
financial assets
hedonic pricing
Households
Housing
Housing costs
Housing prices
location
Photovoltaic cells
Photovoltaics
Prices
Property
solar
Solar energy
Solar panels
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
cited_by cdi_FETCH-LOGICAL-c3901-e288cf57696b56fe78c4c72d44e5454f55c7152c53b378863244ad20dce1b6733
cites cdi_FETCH-LOGICAL-c3901-e288cf57696b56fe78c4c72d44e5454f55c7152c53b378863244ad20dce1b6733
container_end_page 511
container_issue 3
container_start_page 493
container_title The Australian journal of agricultural and resource economics
container_volume 65
creator Best, Rohan
Burke, Paul J.
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 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.
doi_str_mv 10.1111/1467-8489.12431
format article
fullrecord <record><control><sourceid>proquest_cross</sourceid><recordid>TN_cdi_proquest_journals_2550182230</recordid><sourceformat>XML</sourceformat><sourcesystem>PC</sourcesystem><sourcerecordid>2550182230</sourcerecordid><originalsourceid>FETCH-LOGICAL-c3901-e288cf57696b56fe78c4c72d44e5454f55c7152c53b378863244ad20dce1b6733</originalsourceid><addsrcrecordid>eNqFkM1LxDAQxYMouK6evQY8dzffSY9lWV1lQRAFb6FNE-1Sm5q0yP73pla8OpcZhvfmDT8ArjFa4VRrzITMFFP5ChNG8QlY_G1O00wFy3LFX8_BRYwHhBBhgiyA3DpnzRChdzB47wbfw-jbMkDfwXc_xqZ7g31ojI2w6WAxxiGUbVNegjNXttFe_fYleLndPm922f7x7n5T7DNDc4QzS5QyjkuRi4oLZ6UyzEhSM2Y548xxbiTmxHBaUamUoISxsiaoNhZXQlK6BDfz3T74z9HGQR_8GLoUqQnnCCtCKEqq9awywccYrNPp5Y8yHDVGeqKjJxZ6YqF_6CSHmB1fTWuP_8l18VA8zcZvdwtkxQ</addsrcrecordid><sourcetype>Aggregation Database</sourcetype><iscdi>true</iscdi><recordtype>article</recordtype><pqid>2550182230</pqid></control><display><type>article</type><title>Effects of rooftop solar on housing prices in Australia</title><source>EconLit s plnými texty</source><source>International Bibliography of the Social Sciences (IBSS)</source><source>Business Source Ultimate</source><source>Wiley</source><creator>Best, Rohan ; Burke, Paul J. ; Nepal, Rabindra ; Reynolds, Zac</creator><creatorcontrib>Best, Rohan ; Burke, Paul J. ; Nepal, Rabindra ; Reynolds, Zac</creatorcontrib><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 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.</description><identifier>ISSN: 1364-985X</identifier><identifier>EISSN: 1467-8489</identifier><identifier>DOI: 10.1111/1467-8489.12431</identifier><language>eng</language><publisher>Oxford: Blackwell Publishing Ltd</publisher><subject>Assets ; Bias ; financial assets ; hedonic pricing ; Households ; Housing ; Housing costs ; Housing prices ; location ; Photovoltaic cells ; Photovoltaics ; Prices ; Property ; solar ; Solar energy ; Solar panels</subject><ispartof>The Australian journal of agricultural and resource economics, 2021-07, Vol.65 (3), p.493-511</ispartof><rights>2021 Australasian Agricultural and Resource Economics Society Inc.</rights><rights>Copyright © 2021 Australian Agricultural and Resource Economics Society Inc.</rights><lds50>peer_reviewed</lds50><oa>free_for_read</oa><woscitedreferencessubscribed>false</woscitedreferencessubscribed><citedby>FETCH-LOGICAL-c3901-e288cf57696b56fe78c4c72d44e5454f55c7152c53b378863244ad20dce1b6733</citedby><cites>FETCH-LOGICAL-c3901-e288cf57696b56fe78c4c72d44e5454f55c7152c53b378863244ad20dce1b6733</cites><orcidid>0000-0003-2715-2672 ; 0000-0002-9333-6149 ; 0000-0002-2746-6025 ; 0000-0001-9378-6206</orcidid></display><links><openurl>$$Topenurl_article</openurl><openurlfulltext>$$Topenurlfull_article</openurlfulltext><thumbnail>$$Tsyndetics_thumb_exl</thumbnail><link.rule.ids>314,776,780,27903,27904,33202</link.rule.ids></links><search><creatorcontrib>Best, Rohan</creatorcontrib><creatorcontrib>Burke, Paul J.</creatorcontrib><creatorcontrib>Nepal, Rabindra</creatorcontrib><creatorcontrib>Reynolds, Zac</creatorcontrib><title>Effects of rooftop solar on housing prices in Australia</title><title>The Australian journal of agricultural and resource economics</title><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 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.</description><subject>Assets</subject><subject>Bias</subject><subject>financial assets</subject><subject>hedonic pricing</subject><subject>Households</subject><subject>Housing</subject><subject>Housing costs</subject><subject>Housing prices</subject><subject>location</subject><subject>Photovoltaic cells</subject><subject>Photovoltaics</subject><subject>Prices</subject><subject>Property</subject><subject>solar</subject><subject>Solar energy</subject><subject>Solar panels</subject><issn>1364-985X</issn><issn>1467-8489</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2021</creationdate><recordtype>article</recordtype><sourceid>8BJ</sourceid><recordid>eNqFkM1LxDAQxYMouK6evQY8dzffSY9lWV1lQRAFb6FNE-1Sm5q0yP73pla8OpcZhvfmDT8ArjFa4VRrzITMFFP5ChNG8QlY_G1O00wFy3LFX8_BRYwHhBBhgiyA3DpnzRChdzB47wbfw-jbMkDfwXc_xqZ7g31ojI2w6WAxxiGUbVNegjNXttFe_fYleLndPm922f7x7n5T7DNDc4QzS5QyjkuRi4oLZ6UyzEhSM2Y548xxbiTmxHBaUamUoISxsiaoNhZXQlK6BDfz3T74z9HGQR_8GLoUqQnnCCtCKEqq9awywccYrNPp5Y8yHDVGeqKjJxZ6YqF_6CSHmB1fTWuP_8l18VA8zcZvdwtkxQ</recordid><startdate>202107</startdate><enddate>202107</enddate><creator>Best, Rohan</creator><creator>Burke, Paul J.</creator><creator>Nepal, Rabindra</creator><creator>Reynolds, Zac</creator><general>Blackwell Publishing Ltd</general><scope>AAYXX</scope><scope>CITATION</scope><scope>7ST</scope><scope>8BJ</scope><scope>C1K</scope><scope>FQK</scope><scope>JBE</scope><scope>SOI</scope><orcidid>https://orcid.org/0000-0003-2715-2672</orcidid><orcidid>https://orcid.org/0000-0002-9333-6149</orcidid><orcidid>https://orcid.org/0000-0002-2746-6025</orcidid><orcidid>https://orcid.org/0000-0001-9378-6206</orcidid></search><sort><creationdate>202107</creationdate><title>Effects of rooftop solar on housing prices in Australia</title><author>Best, Rohan ; Burke, Paul J. ; Nepal, Rabindra ; Reynolds, Zac</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c3901-e288cf57696b56fe78c4c72d44e5454f55c7152c53b378863244ad20dce1b6733</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>2021</creationdate><topic>Assets</topic><topic>Bias</topic><topic>financial assets</topic><topic>hedonic pricing</topic><topic>Households</topic><topic>Housing</topic><topic>Housing costs</topic><topic>Housing prices</topic><topic>location</topic><topic>Photovoltaic cells</topic><topic>Photovoltaics</topic><topic>Prices</topic><topic>Property</topic><topic>solar</topic><topic>Solar energy</topic><topic>Solar panels</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Best, Rohan</creatorcontrib><creatorcontrib>Burke, Paul J.</creatorcontrib><creatorcontrib>Nepal, Rabindra</creatorcontrib><creatorcontrib>Reynolds, Zac</creatorcontrib><collection>CrossRef</collection><collection>Environment Abstracts</collection><collection>International Bibliography of the Social Sciences (IBSS)</collection><collection>Environmental Sciences and Pollution Management</collection><collection>International Bibliography of the Social Sciences</collection><collection>International Bibliography of the Social Sciences</collection><collection>Environment Abstracts</collection><jtitle>The Australian journal of agricultural and resource economics</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Best, Rohan</au><au>Burke, Paul J.</au><au>Nepal, Rabindra</au><au>Reynolds, Zac</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>Effects of rooftop solar on housing prices in Australia</atitle><jtitle>The Australian journal of agricultural and resource economics</jtitle><date>2021-07</date><risdate>2021</risdate><volume>65</volume><issue>3</issue><spage>493</spage><epage>511</epage><pages>493-511</pages><issn>1364-985X</issn><eissn>1467-8489</eissn><abstract>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 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.</abstract><cop>Oxford</cop><pub>Blackwell Publishing Ltd</pub><doi>10.1111/1467-8489.12431</doi><tpages>20</tpages><orcidid>https://orcid.org/0000-0003-2715-2672</orcidid><orcidid>https://orcid.org/0000-0002-9333-6149</orcidid><orcidid>https://orcid.org/0000-0002-2746-6025</orcidid><orcidid>https://orcid.org/0000-0001-9378-6206</orcidid><oa>free_for_read</oa></addata></record>
fulltext fulltext
identifier ISSN: 1364-985X
ispartof The Australian journal of agricultural and resource economics, 2021-07, Vol.65 (3), p.493-511
issn 1364-985X
1467-8489
language eng
recordid cdi_proquest_journals_2550182230
source EconLit s plnými texty; International Bibliography of the Social Sciences (IBSS); Business Source Ultimate; Wiley
subjects Assets
Bias
financial assets
hedonic pricing
Households
Housing
Housing costs
Housing prices
location
Photovoltaic cells
Photovoltaics
Prices
Property
solar
Solar energy
Solar panels
title Effects of rooftop solar on housing prices in Australia
url http://sfxeu10.hosted.exlibrisgroup.com/loughborough?ctx_ver=Z39.88-2004&ctx_enc=info:ofi/enc:UTF-8&ctx_tim=2025-01-27T04%3A46%3A19IST&url_ver=Z39.88-2004&url_ctx_fmt=infofi/fmt:kev:mtx:ctx&rfr_id=info:sid/primo.exlibrisgroup.com:primo3-Article-proquest_cross&rft_val_fmt=info:ofi/fmt:kev:mtx:journal&rft.genre=article&rft.atitle=Effects%20of%20rooftop%20solar%20on%20housing%20prices%20in%20Australia&rft.jtitle=The%20Australian%20journal%20of%20agricultural%20and%20resource%20economics&rft.au=Best,%20Rohan&rft.date=2021-07&rft.volume=65&rft.issue=3&rft.spage=493&rft.epage=511&rft.pages=493-511&rft.issn=1364-985X&rft.eissn=1467-8489&rft_id=info:doi/10.1111/1467-8489.12431&rft_dat=%3Cproquest_cross%3E2550182230%3C/proquest_cross%3E%3Cgrp_id%3Ecdi_FETCH-LOGICAL-c3901-e288cf57696b56fe78c4c72d44e5454f55c7152c53b378863244ad20dce1b6733%3C/grp_id%3E%3Coa%3E%3C/oa%3E%3Curl%3E%3C/url%3E&rft_id=info:oai/&rft_pqid=2550182230&rft_id=info:pmid/&rfr_iscdi=true