Current Projects

Capitalization of Energy Efficiency in the Rental Housing Market

Using a large dataset on the Dutch rental market, I measure the extent to which energy efficiency benefits are priced in the rental housing market. Contrary to the owner-occupied market, the rental market offers the opportunity to access and assess the direct capitalization of energy cost savings into monthly rents. I exploit data on close to 430,000 addresses in both the regulated and unregulated rental market in the Netherlands, a housing market in which utility bills are high and heterogeneous across energy label classes. The full sample estimates show capitalization rates of around 50 percent and less, indicating under capitalization. When the capitalization rate is allowed to differ between market segments and type of landlords, I find full capitalization for the regulated market segment. A result that contributes to the literature by showing that institutional settings influence the size of the investment inefficiencies on the rental market.

Energy efficiency as a predictor of residential mortgage risk [with: Brounen, D. and Kok, N.] (press release about this work by Rabobank [in Dutch])

Energy efficiency has been touted as an important policy tool for the reduction of global energy consumption and the related carbon externality. Beyond reducing carbon emissions, and perhaps more importantly, energy efficiency should reduce household energy expenditures and could improve home values. We explore the effect of home energy efficiency residential mortgages default. Using data on a large portfolio of single-family home mortgages in the Netherlands, we document that households with more energy efficient homes have lower mortgage default rates, controlling for individual random effects. We argue that the decreased probability of default is due to the additional income available to these households as a result of lower utility bills.

Energy Efficiency Subsidies and Heavy Users: Evidence from the Dutch Residential Market [with: Brounen, D. and van Soest, D.P.]

In order to reduce the carbon footprint of residential energy use, policymakers around the world have issued various policy measures targeting households. In this paper, we evaluate the welfare effects of energy efficiency subsidies within the Dutch housing market. Using rich micro data on homes and households, we analyze the adoption process and energy savings effects of subsidies for specific energetic retrofits and double glazing. Our results show that these subsidies are more popular among higher income households that live in relatively large and old homes, with high utility bills. Our results also show that after the subsidies have been granted and used, these heavy users save more energy than an average household.


Energy Performance Certification and Time on the Market [with: Aydin, E. and Brounen, D.] Journal of Environmental Economics and Management, 98, 102270.

This paper analyzes whether energy performance certificates (EPCs) serve as means to reduce the information asymmetry among market participants during the sale of homes. Using a sample of 876,000 single-family homes in the Netherlands, we examine the impact of EPC adoption on the speed of sale. Our results indicate that energy-rated homes sell faster than non-energy-rated homes, an effect that varies by 7-12 percent depending on model specifications and increases when positive (green) ratings are granted. The information conveyed by these certificates reduces the information asymmetry between buyers and sellers, which helps to reduce the uncertainty of quality.


Gómez, C., Velásquez, H., Rendón, A. J., & Bohórquez, S. (2017). Crime in Colombia: more law enforcement or more justice?. Crime, Law and Social Change68(1-2), 233-249.

Ospina Londoño, M., Canavire-Bacarreza, G., Bohórquez, S., & Cuartas, D. (2015). Expansión de la educación superior y sus efectos en matriculación y migración: evidencia de Colombia. Revista Desarrollo y Sociedad, (75), 317-348.

García, J. J., Gómez, C., & Bohórquez, S. (2014). Formación del precio de las transacciones internacionales de electricidad entre Colombia y Ecuador. Revista de economía del Rosario17(1), 63-87.