University of California, San Diego
Department of Economics
9500 Gilman Dr.
La Jolla, CA 92093
Institutional Affiliations: University of California, San Diego and NYU Furman Center for Real Estate
NBER Working Papers and Publications
|July 2011||Understanding the Solar Home Price Premium: Electricity Generation and "Green" Social Status|
with Joshua S. Graff Zivin, Dora L. Costa, Matthew E. Kahn: w17200
This study uses a large sample of homes in the San Diego area and Sacramento, California area to provide some of the first capitalization estimates of the sales value of homes with solar panels relative to comparable homes without solar panels. Although the residential solar home market continues to grow, there is little direct evidence on the market capitalization effect. Using both hedonics and a repeat sales index approach we find that solar panels are capitalized at roughly a 3.5% premium. This premium is larger in communities with a greater share of college graduates and of registered Prius hybrid vehicles.
Published: Dastrup, Samuel R. & Graff Zivin, Joshua & Costa, Dora L. & Kahn, Matthew E., 2012. "Understanding the Solar Home price premium: Electricity generation and âGreenâ social status," European Economic Review, Elsevier, vol. 56(5), pages 961-973. citation courtesy of