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Increasing energy efficiency in residential buildings brings the social benefits of CO₂ emissions reduction, increased energy security, reduced energy poverty and better public health, but is costly. The question arises as to who should pay for these social benefits: tenants, property owners, or society? The issues are complicated by the fact that the direct costs and benefits of energy-efficiency renovation are influenced by real estate markets. These market effects need to be better understood so that social costs, subsidies and CO₂ taxes can be more fairly apportioned. As a case study, this paper investigates sales and rental market premiums for energy efficiency in 2019–2021 among the 6 million apartments in Germany that were built in 1800–1945, using a database from Germany's largest real estate portal. These apartments are notoriously energy inefficient, and their architecture and elegance can make energy …