The impact of building location on green certification price premiums: Evidence from three European countries

Autor: Vlad-Andrei Porumb, Ion Anghel, Gunther Maier
Přispěvatelé: Research programme I&O
Jazyk: angličtina
Rok vydání: 2020
Předmět:
Office buildings
507023 Location development
Strategy and Management
Green buildings
Price premium
02 engineering and technology
Certification
507026 Economic geography
Industrial and Manufacturing Engineering
507011 Raumforschung
Order (exchange)
507016 Regional economy
0202 electrical engineering
electronic engineering
information engineering
504004 Bevölkerungsstatistik
General Environmental Science
media_common
507023 Standortentwicklung
geography.geographical_feature_category
Public economics
05 social sciences
502037 Location planning
Location price premium
504004 Population statistics
Sustainability
507011 Spatial research
Green buildings
Sustainability
Green certification
Office buildings
Location price premium
502017 Logistik
TURNING GREEN
ENERGY PERFORMANCE
020209 energy
Sample (statistics)
Urban area
507016 Regionalökonomie
507026 Wirtschaftsgeographie
LEED
media_common.cataloged_instance
502037 Standortplanung
GOLD
European union
0505 law
Sustainable development
geography
Renewable Energy
Sustainability and the Environment
Building and Construction
Green certification
LABELS
MARKET
502017 Logistics
050501 criminology
Business
Zdroj: Journal of Cleaner Production, 272:122080. ELSEVIER SCI LTD
ISSN: 0959-6526
Popis: Green building certification has gained global prominence in the wake of the recent calls for ensuring the sustainable development of expanding urban areas. This trend rooted in the fact that buildings are among the main sources of energy consumption and CO2 emissions. Green certification therefore emerged in response to sustainability concerns throughout the building sector. Nonetheless, the significant costs required by green investments have elicited scholars' attention, in an attempt to determine if the benefits of green certification outweigh its costs. This study uses a proprietary data-set of office building transactions from three major European countries - Finland, France, and Germany - in order to analyze the price premium of green certification over the 2010-2015 period. Considering the increasing demand for certification in the European Union (EU) after 2010, it is expected that green office buildings would sell at higher prices relative to non-green buildings. Empirical tests suggest that office buildings with green certification have a 19 percent higher price relative to non-certified buildings. Further, the study aims to assess whether the premium varies with the location of the green buildings within the urban area. Given the price premium brought by a central location - irrespective of green certification - it is expected that the price premium of green investments would incrementally increase in non-central locations. The distance variable is hand-constructed based on geocoding all properties in the dataset - empirical results indicate that the green certification price premium incrementally increases by 10.5 percent for 1-km distance from the city center. Further tests show that the distance effect becomes insignificant in both (i) large cities and (ii) cities of under 200,000 inhabitants. In these two contingencies, the price premium associated with central locations is reduced - which also diminishes the relevance of the green buildings' location. The empirical results are robust to eliminating 2010 and 2011 from the sample and to employing a propensity score matching approach, aimed at increasing the similarity of the treatment and control groups. This paper adds to the rising literature on the topic of green buildings, as it is the first international study to assess the price impact of green certification as a function of office building location.
Databáze: OpenAIRE
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