Value capitalization effects of green buildings: A new insight through time trends and differences in various price levels
Building and Environment
; 224, 2022.
Article
in English
| Web of Science | ID: covidwho-2068745
ABSTRACT
While many studies have explored green buildings, there remain many unsolved questions about how to expand this section of the housing market, such as how the capitalization effect of green buildings varies across time and location. This study investigates the price premiums of green buildings in Taipei City, the largest metropolis in Taiwan, to examine how they have changed over time, and assesses the magnitude of the capitalization effects under varying housing price levels. The empirical results indicate that Taipei residents are willing to pay higher prices for houses with green-label certification. The higher the certification level, the higher the price that residents are willing to pay. This study additionally identifies two characteristics of the capitalization effects in this market. The first is that the price premiums vary with the market condition. For example, during housing market downturns (e.g., 2014-2015), building green premiums may be unremarkable or non-existent. The second effect identified is that green buildings tend to exhibit an 'aristocratic trend.' This means that high-priced houses (i.e., houses priced above the 80% quantile) in the high-end label category attract the highest premiums, implying that the willingness to pay for green features tends to only exist among wealthy buyers. The result of this paper provides evidence to explain the heterogeneity of green build premiums. Regarding the specificity of these premiums, this paper provides recommendations for builders and managers.
Full text:
Available
Collection:
Databases of international organizations
Database:
Web of Science
Type of study:
Experimental Studies
Language:
English
Journal:
Building and Environment
Year:
2022
Document Type:
Article
Similar
MEDLINE
...
LILACS
LIS