Current Projects

The Pricing of Energy Efficiency in the Rental Housing Market

This study measures how energy efficiency benefits are priced and shared in the rental housing market, using a large dataset on the Dutch rental market. Unlike the owner-occupied market, the rental market offers the opportunity to access and assess the pass-through of energy cost savings into monthly rents. We exploit data on nearly 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 rent increases of 50 percent or less of the energy-saving. However, when the pass-through rate is allowed to differ between market segments and landlords types, we find full pass-through for the regulated market segment. This result contributes to the literature by showing how institutional settings, information effects, and market forces influence the size of 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.

Determinants of developing adaptation strategies to climate change in rural households, using the case study of a Colombian region [with: Agudelo, Y. and Muñoz-Mora, J.C.]

This document discusses the principal factors that make household farmers adopt different practices to adapt to climate change. We want to understand better farmers’ perceptions of climate change, their actions to adapt, and the main factors that influence this decision. Using a binary logit model and different variables selection methods, like Least Absolute Shrinkage and Selection Operator (LASSO), we look to know what factors influence the adaptation decision to face climate change in rural households using the case study of a Colombian region. The results highlight that the main factors affecting the decision to adapt to climate change are: i) Demographic and socioeconomic; ii) Resources, services, and technologies and iii) Cognitive and psychological factors. The results of the binary logit model show that the household head job, who takes decisions about the ground, applies for credit, the number of plots and perception of climate change are variables that significantly affect the decision to develop adaptation strategies to climate change. This document can provide information for future researchers and adequately guide policy recommendations regarding climate change and its effects on small rural farmers.


Non-Standard Errors [With: Menkveld, A. J., Dreber, A., Holzmeister, F., Huber, J., Johannesson, M., Kirchler, M., … & Weitzel, U.] Forthcoming: Journal of Finance

In statistics, samples are drawn from a population in a data generating process (DGP). Standard errors measure the uncertainty in sample estimates of population parameters. In science, evidence is generated to test hypotheses in an evidence generating process (EGP). We claim that EGP variation across researchers adds uncertainty: non-standard errors. To study them, we let 164 teams test six hypotheses on the same sample. We find that non-standard errors are sizeable, on par with standard errors. Their size (i) co-varies only weakly with team merits, reproducibility, or peer rating,(ii) declines significantly after peer-feedback, and (iii) is underestimated by participants.

Sectoral analysis of electricity consumption during the COVID-19 pandemic: Evidence for unregulated and regulated markets in Colombia [With: Garcia-Rendón, J., Londoño, F. R., Restrepo, L. J. A.] Energy, 126614 (2023)

We conduct a sectoral analysis of electricity consumption during the Coronavirus disease 2019 (COVID-19) pandemic for the primary sectors that make up Colombia’s unregulated and regulated markets. Applying a model of seemingly unrelated regression equations to examine data between February 2015 and May 2021, we evidence the recomposition of electricity consumption related to mandatory preventive isolation during the pandemic. Average consumption in the residential sector increased by 16.9% as working from home became prevalent. In contrast, unregulated market sectors subjected to quarantines presented a significant decrease in consumption, up to 32% in the financial sector. While industries that were not subjected to mandatory confinement, such as health, food (agriculture), and water supply, had no significant effect. Our results are relevant for informing demand forecasts and planning network expansions to guarantee the reliability of the supply as pandemic practices such as working from home become permanent.

Energy Performance Certification and Time on the Market [with: Aydin, E. and Brounen, D.] Journal of Environmental Economics and Management, 98, 102270 (2019).

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.