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Energy price shocks and the demand for energy-efficient housing: Evidence from Russia’s invasion of Ukraine

Lookup NU author(s): Professor Nils BraakmannORCiD, Dr Bahadir Dursun, Dr Harry PickardORCiD

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This work is licensed under a Creative Commons Attribution 4.0 International License (CC BY 4.0).

Abstract

This paper examines how the energy price shock post Russia's invasion of Ukraine in 2022 affected property transactions. Using administrative data on transaction price and energy efficiency in the UK, we explore if buyers adjust behaviour in response to greater energy costs. Using hedonic difference-in-differences models, we find that prices increase by £1000 for high-rated energy efficiency properties and decrease by £2400 for low-rated ones. Properties with higher potential energy efficiency also see value upticks. We also find that high gas-consuming neighbourhoods experience fewer house sales post-invasion. The size of the effect is explained by buyers perceiving the energy price hike as temporary. Our results shed light on the interplay between energy prices and the property market, offering insights into buyer behaviour and the valuation of energy efficiency.

Publication metadata

Author(s): Braakmann N, Dursun B, Pickard H

Publication type: Article

Publication status: Published

Journal: Economica

Year: 2026

Volume: 93

Issue: 369

Pages: 30-51

Print publication date: 01/01/2026

Online publication date: 04/09/2025

Acceptance date: 28/08/2025

Date deposited: 07/07/2025

ISSN (print): 0013-0427

ISSN (electronic): 1468-0335

Publisher: Wiley-Blackwell Publishing Ltd.

URL: https://doi.org/10.1111/ecca.70008

DOI: 10.1111/ecca.70008

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