You can't take it with you: Appliance choices and the energy efficiency gap

In the U.S. real estate market, some types of appliances are expected to convey (be included) with the sale of a house, while other appliances may or may not convey depending on local norms that vary at the state level. An appliance that conveys will be left behind when a homeowner moves, while an appliance that does not convey may be kept until the end of its useful life. I estimate the effect of an appliance conveying using a difference-in-differences across states and appliance types, allowing me to fully control for state-level trends with fixed effects. I find that consumers purchase less expensive refrigerators and clothes washers when those appliances convey. This result indicates that the value of these appliances are not fully capitalized into home prices. I further show that accounting for whether an appliance conveys can substantially reduce or eliminate apparent undervaluation of energy efficiency benefits.