Is Real Estate Liquidity Influenced by Green Hedonic Attributes? Large Sample Evidence from German Residential Markets

Environmental performance certificates constitute one of the main tools to encourage tenants, landlords and any agent in the residential sector to account for energy consumption in property transactions. This paper builds upon prior research and expands the current state of literature by investigating the green asset liquidity in terms of property’s time-on-market. Using an empirical sample of nearly 1.3 million observations in Germany and semiparametric survival models, I provide strong evidence that energy efficiency influences the marketing process of residential assets and conclude that energy inefficient assets are strongly discriminated as their counterparts.