Yoshida, Jiro and Sugiura, Ayako (2010): Which “Greenness” is Valued? Evidence from Green Condominiums in Tokyo.
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This is one of the first researches on price differentials of green buildings in Asia. Using a rich set of data on condominium transactions and mandatory evaluation of environmental performance in Tokyo, we estimate the effects of itemized green scores on transaction prices. Although green condominiums are on average traded at a premium, the premium is mainly attributed to the building age and quality. After controlling for relevant attributes, we find significant price discounts for newly constructed green condominiums. However, green condominiums experience little depreciation at least during the initial years. Using itemized scores, we find that the long-life design mitigates price discounts, but other factors such as the use of eco-friendly materials, renewable energy, water reuse, and greening exacerbate discounts. Several possibilities are discussed including high future maintenance costs of green condominiums.
|Item Type:||MPRA Paper|
|Original Title:||Which “Greenness” is Valued? Evidence from Green Condominiums in Tokyo|
|English Title:||Which “Greenness” is Valued? Evidence from Green Condominiums in Tokyo|
|Keywords:||sustainability; green building; hedonic pricing; transaction price; residential real estate; Japan|
|Subjects:||Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q51 - Valuation of Environmental Effects
R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R3 - Real Estate Markets, Spatial Production Analysis, and Firm Location > R31 - Housing Supply and Markets
R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R2 - Household Analysis > R21 - Housing Demand
|Depositing User:||Jiro Yoshida|
|Date Deposited:||08. Jun 2010 21:44|
|Last Modified:||12. Feb 2013 10:52|
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