Two-third of the residential building stock in Germany is older than 35 years and bears a lot of potential for energy savings. The German Federal Government has therefore committed itself to reduce the primary energy in the building sector down to 80 percent by 2050. This ambitious target...

The paper analyses housing investment patterns in 127 German cities with annual data from 1990 to 2010. The empirical estimation is conducted with a panel analysis based on Tobinís Q theory, which says that any investment is a function of the Q ratio. Our marginal Q ratio captures the...