Green premium in buildings: Evidence from the real estate market of Singapore

Journal of Cleaner Production

Volumn 286, Issue , 2021, Pages

  Dell'Anna, Federico ^a   Bottero, Marta ^a  

^a POLITECNICO DI TORINO   (Italy)

Author keywords

Econometric analysis; Green building; Green mark; Hedonic Pricing Method (HPM); Spatial autocorrelation model (SAR); Spatial error model (SEM)

Indexed keywords

AUTOCORRELATION; COMMERCE; CONSUMER BEHAVIOR; STATISTICS; SUSTAINABLE DEVELOPMENT;

EVALUATION PROTOCOL; LARGE-SCALE PROJECTS; PROPERTY VALUATION; REAL ESTATE MARKET; SPATIAL AUTOCORRELATIONS; SPATIAL COMPLEXITY; SPATIAL ECONOMETRICS; SPATIAL ERROR MODELS;

BUILDINGS;

EID: 85097742635     PISSN: 09596526     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jclepro.2020.125327     Document Type: Article

References (85)

1. Achtnicht, M., Madlener, R., Factors influencing German house owners’ preferences on energy retrofits. Energy Pol. 68 (2014), 254–263, 10.1016/j.enpol.2014.01.006.
2. Addae-Dapaah, K., Chieh, S.J., Green Mark certification: does the market understand?. J. Sustain. Real Estate 3 (2011), 162–191.
3. Akaike, H., Akaike's information criterion. International Encyclopedia of Statistical Science, 2011, Springer Berlin Heidelberg, Berlin, Heidelberg, 10.1007/978-3-642-04898-2_110 25–25.
4. Akaike, H., A new look at the statistical model identification. IEEE Trans. Automat. Contr. 19 (1974), 716–723, 10.1109/TAC.1974.1100705.
5. Anselin, L., GIS research infrastructure for spatial analysis of real estate markets. J. Hous. Res. 9 (1998), 113–133, 10.5555/jhor.9.1.e523670p713076p1.
6. Anselin, L., A test for spatial autocorrelation in seemingly unrelated regressions. Econ. Lett. 28 (1988), 335–341, 10.1016/0165-1765(88)90009-2.
7. Anselin, L., Gallo, J., Le, Jayet, H., Spatial panel econometrics. The Econometrics of Panel Data. Advanced Studies in Theoretical and Applied Econometrics, 2008, 625–660, 10.1007/978-3-540-75892-1_19.
8. Anselin, L., Syabri, I., Kho, Y., GeoDa: an introduction to spatial data analysis. Geogr. Anal. 38 (2006), 5–22, 10.1111/j.0016-7363.2005.00671.x.
9. Assumma, V., Bottero, M., Monaco, R., Landscape economic attractiveness: an integrated methodology for exploring the rural landscapes in Piedmont (Italy). Land, 8, 2019, 105, 10.3390/land8070105.
10. Attardi, R., Cerreta, M., Sannicandro, V., Torre, C.M., Non-compensatory composite indicators for the evaluation of urban planning policy: the Land-Use Policy Efficiency Index (LUPEI). Eur. J. Oper. Res. 264 (2018), 491–507, 10.1016/j.ejor.2017.07.064.
11. Banfi, S., Farsi, M., Filippini, M., Jakob, M., Willingness to pay for energy-saving measures in residential buildings. Energy Econ. 30 (2008), 503–516, 10.1016/j.eneco.2006.06.001.
12. BCA, 3rd green building masterplan. [WWW Document]. URL https://www.bca.gov.sg/GreenMark/others/3rd_Green_Building_Masterplan.pdf, 2014 accessed 7.31.20.
13. Bisello, A., Antoniucci, V., Marella, G., Measuring the price premium of energy efficiency: a two-step analysis in the Italian housing market. Energy Build., 208, 2020, 109670, 10.1016/j.enbuild.2019.109670.
14. Bloom, B., Nobe, M.C., Nobe, M.D., Valuing green home designs: a study of energy STAR homes. J. Sustain. Real Estate 3 (2011), 109–126.
15. Bottero, M., Bravi, M., Dell'Anna, F., Mondini, G., Valuing building energy efficiency through Hedonic Prices Method: are spatial effects relevant?. Valori e Valutazioni 21 (2018), 27–40.
16. Bottero, M., Caprioli, C., Cotella, G., Santangelo, M., Sustainable cities: a reflection on potentialities and limits based on existing eco-districts in Europe. Sustainability, 11, 2019, 5794, 10.3390/su11205794.
17. Bottero, M., D'Alpaos, C., Dell'Anna, F., Boosting Investments in Buildings Energy Retrofit: The Role of Incentives. Bevilacqua, C., Calabro, F., Della Spina, L., (eds.) New Metropolitan Perspectives, 2019, Springer, Cham, 593–600.
18. Bottero, M., Datola, G., De Angelis, E., A system dynamics model and analytic network process: an integrated approach to investigate urban resilience. Land, 9, 2020, 242, 10.3390/land9080242.
19. Bourassa, S.C., Cantoni, E., Hoesli, M., Spatial dependence, housing submarkets, and house price prediction. J. R. Estate Finance Econ. 35 (2007), 143–160, 10.1007/s11146-007-9036-8.
20. Bowen, W.M., Mikelbank, B.A., Prestegaard, D.M., Theoretical and empirical considerations regarding space in hedonic housing price model applications. Growth Change 32 (2001), 466–490, 10.1111/0017-4815.00171.
21. Brécard, D., Le Boennec, R., Salladaré, F., Accessibility, local pollution and housing prices. Evidence from Nantes Métropole, France. Economie et Statistique/Economics and Statistics, 2018, 97–115, 10.24187/ecostat.2018.500t.1947.
22. Can, A., The measurement of neighborhood dynamics in urban house prices. Econ. Geogr., 66, 1990, 254, 10.2307/143400.
23. Capolongo, S., Sdino, L., Dell'Ovo, M., Moioli, R., Della Torre, S., How to assess urban regeneration proposals by considering conflicting values. Sustainability, 11, 2019, 3877, 10.3390/su11143877.
24. Carter, C., Haloupek, W., Spatial autocorrelation in a retail context. Int. Real Estate Rev. 3 (2000), 34–48.
25. Chegut, A., Eichholtz, P., Holtermans, R., Energy efficiency and economic value in affordable housing. Energy Pol. 97 (2016), 39–49, 10.1016/j.enpol.2016.06.043.
26. Chen, S., Jin, H., Pricing for the clean air: evidence from Chinese housing market. J. Clean. Prod. 206 (2019), 297–306, 10.1016/j.jclepro.2018.08.220.
27. Copiello, S., Spatial dependence of housing values in Northeastern Italy. Cities, 2020, 10.1016/j.cities.2019.102444.
28. D'Alpaos, C., Andreolli, F., Urban quality in the city of the future: a bibliometric multicriteria assessment model. Ecol. Indic., 117, 2020, 106575, 10.1016/j.ecolind.2020.106575.
29. Del Giudice, V., Massimo, D.E., De Paola, P., Forte, F., Musolino, M., Malerba, A., Post carbon city and real estate market: testing the dataset of reggio calabria market using spline smoothing semiparametric method. Bevilacqua, C., Calabro, F., Della Spina, L., (eds.) Smart Innovation, Systems and Technologies, 2019, Springer, Cham, 206–214, 10.1007/978-3-319-92099-3_25.
30. Dell'Anna, F., Energy and Economic Evaluations to Design Urban Transformation and Requalification Programs. PhD Thesis, 2020, Politecnico di Torino.
31. Dell'Anna, F., Green jobs and energy efficiency as strategies for economic growth and the reduction of environmental impacts. Energy Pol., 2021, 10.1016/j.enpol.2020.112031 In press.
32. Dell'Anna, F., Bravi, M., Marmolejo-Duarte, C., Bottero, M.C., Chen, A., EPC green premium in two different European climate zones: a comparative study between Barcelona and Turin. Sustainability, 11, 2019, 5605, 10.3390/su11205605.
33. Deng, Y., Gyourko, J., Li, T., Singapore's cooling measures and its housing market. J. Hous. Econ., 45, 2019, 101573, 10.1016/j.jhe.2018.04.001.
34. Deng, Y., Li, Z., Quigley, J.M., Economic returns to energy-efficient investments in the housing market: evidence from Singapore. Reg. Sci. Urban Econ. 42 (2012), 506–515, 10.1016/j.regsciurbeco.2011.04.004.
35. Deng, Y., Wu, J., Economic returns to residential green building investment: the developers’ perspective. Reg. Sci. Urban Econ. 47 (2014), 35–44, 10.1016/j.regsciurbeco.2013.09.015.
36. Dunse, N., Jones, C., Orr, A., Tarbet, H., The extent and limitations of local commercial property market data. J. Prop. Valuat. Invest. 16 (1998), 455–473, 10.1108/14635789810237646.
37. Encinas, F., De Herde, A., Sensitivity analysis in building performance simulation for summer comfort assessment of apartments from the real estate market. Energy Build. 65 (2013), 55–65, 10.1016/j.enbuild.2013.05.047.
38. Gabrielli, L., Giuffrida, S., Trovato, M.R., Real estate landscapes and the historic city: on how looking inside the market. Smart Innovation, Systems and Technologies, 2019, Springer Science and Business Media Deutschland GmbH, 269–276, 10.1007/978-3-319-92102-0_29.
39. Gillen, K., Thibodeau, T., Wachter, S., Anisotropic autocorrelation in house prices. J. R. Estate Finance Econ. 23 (2001), 5–30, 10.1023/A:1011140022948.
40. Griffith, D.A., What is spatial autocorrelation? Reflections on the past 25 years of spatial statistics. Espace Géogr. 21 (1992), 265–280, 10.3406/spgeo.1992.3091.
41. He, C., Yu, S., Han, Q., de Vries, B., How to attract customers to buy green housing? Their heterogeneous willingness to pay for different attributes. J. Clean. Prod. 230 (2019), 709–719, 10.1016/j.jclepro.2019.05.160.
42. Herath, S., Maier, G., The Hedonic Price Method in Real Estate and Housing Market Research: A Review of the Literature, SRE-Discussion Papers 2010. 2010, WU Vienna University of Economics and Business, Vienna, Austria WU Vienna University of Economics and Business.
43. Hoen, B., Brown, J.P., Jackson, T., Thayer, M.A., Wiser, R., Cappers, P., Spatial hedonic analysis of the effects of US wind energy facilities on surrounding property values. J. R. Estate Finance Econ. 51 (2015), 22–51, 10.1007/s11146-014-9477-9.
44. Imbens, G.W., Wooldridge, J.M., Recent developments in the econometrics of program evaluation. J. Econ. Lit., 2009, 10.1257/jel.47.1.5.
45. Ismail, S., Spatial autocorrelation and real estate studies: a literature review. Malays. J. Real Estate 1 (2006), 1–13.
46. Jensen, C.U., Panduro, T.E., Lundhede, T.H., Nielsen, A.S.E., Dalsgaard, M., Thorsen, B.J., The impact of on-shore and off-shore wind turbine farms on property prices. Energy Pol. 116 (2018), 50–59, 10.1016/j.enpol.2018.01.046.
47. Kok, N., Kahn, M.E., The Value of Green Labels in the California Housing Market- an Economic Analysis of the Impact of Green Labeling on the Sales Price of a Home. 2012.
48. Laquatra, J., Housing market capitalization of thermal integrity. Energy Econ. 8 (1986), 134–138, 10.1016/0140-9883(86)90011-3.
49. Lee, J., Wargocki, P., Chan, Y., Chen, L., Tham, K., Indoor environmental quality, occupant satisfaction, and acute building-related health symptoms in Green Mark-certified compared with non-certified office buildings. Indoor Air 29 (2019), 112–129, 10.1111/ina.12515.
50. LeSage, J., Pace, R.K., Introduction to Spatial Econometrics. 2009, Chapman and Hall/CRC, 10.1201/9781420064254.
51. LeSage, J.P., An introduction to spatial econometrics. Rev. d’Écon. Ind., 2008, 19–44, 10.4000/rei.3887.
52. Li, W., Saphores, J.D., A spatial hedonic analysis of the value of urban land cover in the multifamily housing market in los angeles, CA. Urban Stud. 49 (2012), 2597–2615, 10.1177/0042098011429486.
53. Liebelt, V., Bartke, S., Schwarz, N., Hedonic pricing analysis of the influence of urban green spaces onto residential prices: the case of Leipzig, Germany. Eur. Plann. Stud. 26 (2018), 133–157, 10.1080/09654313.2017.1376314.
54. Liu, W., Valuation of water level: a spatial hedonic analysis on lakeshore properties. J. Agric. Resour. Econ. 45 (2020), 20–37, 10.22004/ag.econ.298432.
55. Mangialardo, A., Micelli, E., Saccani, F., Does sustainability affect real estate market values? Empirical evidence from the office buildings market in milan (Italy). Sustainability, 11, 2018, 12, 10.3390/su11010012.
56. Marmolejo Duarte, C., La incidencia de la calificación energética sobre los valores residenciales: un análisis para el mercado plurifamiliar en Barcelona. Inf. Construcción, 68, 2016, e156, 10.3989/ic.16.053.
57. McCord, M., Lo, D., Davis, P.T., Hemphill, L., McCord, J., Haran, M., A spatial analysis of EPCs in the Belfast Metropolitan Area housing market. J. Property Res. 37 (2020), 25–61, 10.1080/09599916.2019.1697345.
58. Mei, Y., Sohngen, B., Babb, T., Valuing urban wetland quality with hedonic price model. Ecol. Indicat. 84 (2018), 535–545, 10.1016/j.ecolind.2017.09.022.
59. Monetary Authority of Singapore, Interest rates of Banks and finance Companies. [WWW Document]. URL https://secure.mas.gov.sg/msb/InterestRatesOfBanksAndFinanceCompanies.aspx, 2018 accessed 1.21.20.
60. Pace, R.K., Barry, R., Clapp, J.M., Rodriquez, M., Spatiotemporal autoregressive models of neighborhood effects. J. R. Estate Finance Econ. 17 (1998), 15–33, 10.1023/A:1007799028599.
61. Phang, S.-Y., House prices and aggregate consumption: do they move together? Evidence from Singapore. J. Hous. Econ. 13 (2004), 101–119, 10.1016/j.jhe.2004.04.003.
62. Ramos, A., Gago, A., Labandeira, X., Linares, P., The role of information for energy efficiency in the residential sector. Energy Econ. 52 (2015), S17–S29, 10.1016/j.eneco.2015.08.022.
63. Rosato, P., Breil, M., Giupponi, C., Berto, R., Assessing the impact of urban improvement on housing values: a hedonic pricing and multi-attribute analysis model for the historic centre of Venice. Buildings, 7(4), 2017, 112, 10.3390/buildings7040112.
64. Rosen, S., Hedonic prices and implicit markets: product differentiation in pure competition. J. Polit. Econ. 82 (1974), 34–55, 10.1086/260169.
65. Saavedra, L.A., Tests for spatial lag dependence based on method of moments estimation. Reg. Sci. Urban Econ. 33 (2003), 27–58, 10.1016/S0166-0462(01)00106-5.
66. Simonotti, M., La Stima Immobiliare. 1997, UTET, Turin.
67. Singapore Government Agency, MOF |Singapore budget 2020 | budgets of 2020. [WWW Document]. URL https://www.singaporebudget.gov.sg/budget_2020/budget-measures/budget-booklet/budgets-of-2020, 2020 accessed 7.31.20.
68. Song, M., Khi, T.M., Leung, C., Singapore Developers. Can developers rally despite falling prices?. [WWW Document]. URL https://newacademyoffinance.com/wp-content/uploads/2020/06/JPMorgan_SingaporeDevelopersCandevelopersrallydespitefallingprices_MaintainOWonCITUOLupgradeFPLtoOW_Jun_08_2020-1.pdf, 2020 accessed 9.9.20.
69. Sun, H., Tu, Y., Yu, S.-M., A spatio-temporal autoregressive model for multi-unit residential market analysis∗. J. R. Estate Finance Econ. 31 (2005), 155–187, 10.1007/s11146-005-1370-0.
70. Tu, Y., Yu, S.-M., Sun, H., Transaction-based office price indexes: a spatiotemporal modeling approach. R. Estate Econ. 32 (2004), 297–328, 10.1111/j.1080-8620.2004.00093.x.
71. United State Boreau Census, US Census Bureau Historical Census of Housing Tables Home Values. 2020.
72. URA, Release of 2nd Quarter 2019 real estate statistics. [WWW Document]. URL https://www.ura.gov.sg/Corporate/Media-Room/Media-Releases/pr19-32, 2019 accessed 1.13.20.
73. URA, Welcome to REALIS [WWW Document]. URL https://spring.ura.gov.sg/lad/ore/login/index.cfm, 2017 accessed 1.13.20.
74. Vergerio, G., Becchio, C., Bottero, M., Corgnati, S.P., A methodological framework for the economic assessment of ICT-tools for occupants’ engagement. Bevilacqua, C., Calabro, F., Della Spina, L., (eds.) New Metropolitan Perspectives. NMP 2020. Smart Innovation, Systems and Technologies, 2021, Springer, Cham, 1198–1207, 10.1007/978-3-030-48279-4_111.
75. von Graevenitz, K., Panduro, T.E., An alternative to the standard spatial econometric approaches in hedonic house price models. Land Econ. 91 (2015), 386–409, 10.3368/le.91.2.386.
76. Votsis, A., Planning for green infrastructure: the spatial effects of parks, forests, and fields on Helsinki's apartment prices. Ecol. Econ. 132 (2017), 279–289, 10.1016/j.ecolecon.2016.09.029.
77. Wilhelmsson, M., Spatial models in real estate economics. Hous. Theor. Soc. 19 (2002), 92–101, 10.1080/140360902760385646.
78. World Green Building Council. The Contribution of Green Buildings in the Fight against COVID-19. 2020 [WWW Document]. URL https://www.worldgbc.org/news-media/contribution-green-buildings-fight-against-covid-19 accessed 4.25.20.
79. Yamada, I., Thiessen polygons. International Encyclopedia of Geography: People, the Earth, Environment and Technology, 2016, John Wiley & Sons, Ltd, Oxford, UK, 1–6, 10.1002/9781118786352.wbieg0157.
80. Yau, Y., Willingness to pay and preferences for green housing attributes in Hong Kong. J. Green Build. 7 (2012), 137–152, 10.3992/jgb.7.2.137.
81. Zhang, J., Tan, P.Y., Demand for parks and perceived accessibility as key determinants of urban park use behavior. Urban For. Urban Green., 44, 2019, 126420, 10.1016/j.ufug.2019.126420.
82. Zhang, L., Wu, J., Liu, H., Turning green into gold: a review on the economics of green buildings. J. Clean. Prod., 2018, 10.1016/j.jclepro.2017.11.188.
83. Zheng, S., Wu, J., Kahn, M.E., Deng, Y., The nascent market for “green” real estate in Beijing. Eur. Econ. Rev. 56 (2012), 974–984, 10.1016/j.euroecorev.2012.02.012.
84. Zillow, Fort Collins home prices & home values. [WWW Document]. URL https://www.zillow.com/fort-collins-co/home-values/, 2020 accessed 8.2.20.
85. Zou, Y., Certifying green buildings in China: LEED vs. 3-star. J. Clean. Prod. 208 (2019), 880–888, 10.1016/j.jclepro.2018.10.204.