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Obtaining Better Sustainability Data for Hedonic Analysis

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  • Ramya Rajajagadeesan Aroul
  • Mauricio Rodriguez

Abstract

Home buyers and policymakers are becoming more conscious about the benefits that green building features can provide society. This has led to the adoption of green building and sustainable design and construction programs in a growing number of cities in the United States. In this paper, we describe the types of data typically available for capturing green features in residential research, which can be used in hedonic pricing models. We describe how GIS technology and a jurisdiction’s mandatory policies can be used to obtain reliable green data. We demonstrate how to combine data on sustainability-related amenities to capture the association between green features and house prices. Following our suggestions should help researchers avoid making erroneous inferences and lead to more reliable estimates of how green amenities are associated with residential home transaction prices.

Suggested Citation

  • Ramya Rajajagadeesan Aroul & Mauricio Rodriguez, 2017. "Obtaining Better Sustainability Data for Hedonic Analysis," Journal of Real Estate Literature, Taylor & Francis Journals, vol. 25(2), pages 427-443, January.
    • Handle: RePEc:taf:rjelxx:v:25:y:2017:i:2:p:427-443
    DOI: 10.1080/10835547.2017.12090466
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