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Determinants of Green Building Adoption

Author

Listed:
  • Franz Fuerst

    (Department of Land Economy, University of Cambridge, 19 Silver Street, Cambridge CB3 9GP, England)

  • Constantine Kontokosta

    (Center for Urban Science and Progress, New York University, 1 MetroTech Center, 19th floor, Brooklyn, NY 11201, USA)

  • Patrick McAllister

    (The Bartlett School of Planning, UCL Faculty of the Built Environment, Wates House, 22 Gordon Street, London WC1H 0BC, England)

Abstract

In this paper we investigate variations in the adoption of LEED-certified commercial buildings across 174 core-based statistical areas in the United States. Drawing upon a unique database and using a robust analytical framework, the determinants of the proportion LEED-certified space are modeled. We find that, despite high growth rates, LEED-certified stock accounts for a relatively small proportion of the total commercial stock. The average proportion is less than 1%. A further contribution of the paper is that our concentration measure avoids the biases associated with simple percentage measures that were used in previous studies of this topic. Strongest predictors of the proportion of LEED-certified commercial space in a local market are market size, educational attainment and economic growth. In terms of policy effectiveness, it is found that only a mandatory requirement to obtain LEED certification for new buildings has a significant positive effect on market penetration.

Suggested Citation

  • Franz Fuerst & Constantine Kontokosta & Patrick McAllister, 2014. "Determinants of Green Building Adoption," Environment and Planning B, , vol. 41(3), pages 551-570, June.
    • Handle: RePEc:sae:envirb:v:41:y:2014:i:3:p:551-570
    DOI: 10.1068/b120017p
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    References listed on IDEAS

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    Cited by:

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    3. Helen X. H. Bao & Steven Haotong Li, 2016. "Overconfidence And Real Estate Research: A Survey Of The Literature," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(04), pages 1-24, September.
    4. Constantin Kempf & Juerg Syz, 2022. "Why pay for sustainable housing? Decomposing the green premium of the residential property market in the Canton of Zurich, Switzerland," SN Business & Economics, Springer, vol. 2(11), pages 1-39, November.
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    6. Daniel C. Matisoff & Douglas S. Noonan & Mallory E. Flowers, 2016. "Policy Monitor—Green Buildings: Economics and Policies," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 10(2), pages 329-346.
    7. Niina Leskinen & Jussi Vimpari & Seppo Junnila, 2020. "A Review of the Impact of Green Building Certification on the Cash Flows and Values of Commercial Properties," Sustainability, MDPI, vol. 12(7), pages 1-22, March.
    8. Martha Katafygiotou & Pavlos Protopapas & Thomas Dimopoulos, 2023. "How Sustainable Design and Awareness May Affect the Real Estate Market," Sustainability, MDPI, vol. 15(23), pages 1-27, November.
    9. Zhang, Li & Wu, Jing & Liu, Hongyu, 2018. "Policies to enhance the drivers of green housing development in China," Energy Policy, Elsevier, vol. 121(C), pages 225-235.
    10. Michal Gluszak & Agnieszka Malkowska & Bartłomiej Marona, 2021. "Green Building Adoption on Office Markets in Europe: An Empirical Investigation into LEED Certification," Energies, MDPI, vol. 14(7), pages 1-12, April.
    11. Armin Jeddi Yeganeh & Andrew Patton McCoy & Steve Hankey, 2019. "Green Affordable Housing: Cost-Benefit Analysis for Zoning Incentives," Sustainability, MDPI, vol. 11(22), pages 1-24, November.
    12. Cong Liang & Matthew Chi Hei Yeung & Alan Kai Ming Au, 2022. "The impact of Airbnb on housing affordability: Evidence from Hong Kong," Environment and Planning B, , vol. 49(3), pages 1048-1066, March.
    13. Sumin Kim & Benson Teck Heng Lim & Bee Lan Oo, 2022. "Energy Consumption and Carbon Emissions of Mandatory Green Certified Offices in Australia: Evidence and Lessons Learnt across 2011–2020," Sustainability, MDPI, vol. 14(21), pages 1-18, October.
    14. Gabe, Jeremy, 2016. "An empirical comparison of voluntary and mandatory building energy performance disclosure outcomes," Energy Policy, Elsevier, vol. 96(C), pages 680-687.
    15. Qin, Yong & Xu, Zeshui & Wang, Xinxin & Škare, Marinko, 2022. "Green energy adoption and its determinants: A bibliometric analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 153(C).
    16. Dong Hyun Kim & Amina Irakoze, 2022. "Identifying Market Segment for the Assessment of a Price Premium for Green Certified Housing: A Cluster Analysis Approach," Sustainability, MDPI, vol. 15(1), pages 1-16, December.
    17. David T. Tan & Yi Gong & José Gabriel Siri, 2017. "The Impact of Subsidies on the Prevalence of Climate-Sensitive Residential Buildings in Malaysia," Sustainability, MDPI, vol. 9(12), pages 1-26, December.
    18. Fuerst, Franz & Gabrieli, Tommaso & McAllister, Patrick, 2017. "A green winner's curse? Investor behavior in the market for eco-certified office buildings," Economic Modelling, Elsevier, vol. 61(C), pages 137-146.
    19. Zhang, Li & Sun, Cong & Liu, Hongyu & Zheng, Siqi, 2016. "The role of public information in increasing homebuyers' willingness-to-pay for green housing: Evidence from Beijing," Ecological Economics, Elsevier, vol. 129(C), pages 40-49.
    20. Guangdong Wu & Jian Zuo & Xianbo Zhao, 2017. "Incentive Model Based on Cooperative Relationship in Sustainable Construction Projects," Sustainability, MDPI, vol. 9(7), pages 1-20, July.
    21. Svetlana Pushkar, 2021. "LEED 2009 Recertification of Existing Buildings: Bonus Effect," Sustainability, MDPI, vol. 13(19), pages 1-14, September.

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