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An Investigation of the Effect of Eco-Labeling on Office Occupancy Rates

Fuerst, Franz and McAllister, Patrick (2009): An Investigation of the Effect of Eco-Labeling on Office Occupancy Rates.

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Abstract

This paper investigates the effect of eco-labeling on the occupancy rates of commercial offices in the US. The occupancy rates of LEED and Energy Star labeled offices are compared to a sample of non-labeled offices. Using OLS and quantile regression analyses, a significant positive relationship is found between occupancy rate and the eco-label. Controlling for differences in age, height, building class and quality, the results suggest that occupancy rates are approximately 8% higher in LEED labeled offices and 3% higher in Energy Star labeled offices. However, for Energy Star labeled offices effects are concentrated in certain market segments.

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