INCOME RISK IN ENERGY-EFFICIENT OFFICE BUILDINGS BY NIKODEM SZUMILO, UNIVERSITY OF CAMBRIDGE FRANZ FUERST, CULS FELLOW, UNIVERSITY OF CAMBRIDGE

The study investigates uncertainty of financial performance of energy efficient office buildings to establish how making an asset energy efficient changes its financial characteristics. Two hypotheses explaining why a change may occur are presented and examined (one based on higher demand and one on higher economic efficiency). A large panel dataset, consisting of 30 time periods for 14,395 US commercial office buildings, is examined using different econometric approaches. Overall, the results seem to support theoretical predictions and show a structural change in income risk characteristics of energy efficient assets.