I estimate the energy efficiency premium in unlabeled office buildings by exploiting
variation in mandatory building energy standard implementations, as a result of the
U.S. 1992 Energy Policy Act. A more stringent energy code leads to rent and price
premiums of approximately 4% and 9%, respectively. Significant heterogeneity in the
rent premium is observed based on who pays the utility bills, as would be expected
absent asymmetric information about energy conservation characteristics among real
estate market participants. The rent and price premiums are larger in hotter, more
humid climates, and are consistent with full capitalization of the energy savings from
a more stringent standard
