DP13270-2 | Incentives for Information Provision: Energy Efficiency in the Spanish Rental Market

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We build a search model with asymmetric information regarding housesĀ“ energy efficiency. The objective is to shed light on the house owners` incentives to obtain and disclose energy certificates (ECs) in the rental market. Such incentives depend not only on the rent premium for more efficient houses - as has been widely documented - but also on the rent penalty for unlabeled houses. Interestingly, we show that such a penalty is higher the greater the disclosure rate of ECs. The theoretical predictions are empirically quantified in the context of the Spanish rental market.