Issue |
E3S Web Conf.
Volume 111, 2019
CLIMA 2019 Congress
|
|
---|---|---|
Article Number | 03053 | |
Number of page(s) | 12 | |
Section | High Energy Performance and Sustainable Buildings | |
DOI | https://doi.org/10.1051/e3sconf/201911103053 | |
Published online | 13 August 2019 |
Can green labels become the new normal?
1 School of Architecture, Victoria University of Wellington, Wellington, New Zealand
2 School of Marketing & International Business, Victoria University of Wellington, Wellington, New Zealand
3 Building Research Association New Zealand (BRANZ), Porirua, New Zealand
* Corresponding author: german.molinalarrain@vuw.ac.nz
This study sought to review the effectiveness of green labels on the residential real estate market. As past studies revealed, green labels increased property prices, which motivated developers to build more green certified buildings. However, contradictory studies revealed that many developers did not use green labels due to a lack of consumer demand. Therefore, what impact do green labels have on the residential housing market? A meta-analysis of 36 articles presenting 52 different studies, published between 2008-2018, suggests that the price premium charged for green labels may have been systematically overestimated. Consumers’ willingness-to-pay (derived from correlating green labels with purchase price) does not necessarily represent the average consumer but green consumers. The conclusion that follows from this analysis is that full market transformation via green labels is unlikely to take place because only a fraction of the population is willing to pay the premium. Therefore, full adoption is unlikely without other market “interventions”.
© The Authors, published by EDP Sciences, 2019
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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