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What drives “green housing” construction? Evidence from Switzerland

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  • Marco Salvi
  • Juerg Syz
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    Abstract

    Purpose – Switzerland boasts arguably the highest density of green properties in the world. In 2008, more than 15 percent of total new construction received the Swiss energy building label Minergie. The spatial distribution of these green buildings, however, is highly heterogeneous. In some regions, more than half of the new dwellings are built according to the Swiss green building standard. In others, this share is still negligible. The purpose of this paper is to identify the determinants of the distribution of green housing. Design/methodology/approach – For 2,571 Swiss municipalities, the author computes the green building share of new residential buildings. Data are collected for several variables measuring demographic, geographic, social, cultural, and political aspects that – according to the authors' hypothesis – may influence green building activity. Count regression is used to estimate the impact of these variables on the demand for green buildings. Findings – It is found that differences in income levels and cultural affiliation between Swiss municipalities account for the largest part of the variation in green building activity. The impact of homeowners' stance on environmentalism is highly significant but less important. Government subsidies do not seem to trigger additional green housing activity. Originality/value – The paper presents one of the first empirical analyses regarding the determinants of green building activity. Thanks to a comprehensive dataset, the authors are able to investigate the impact of potential drivers of “green housing” construction activity. The regional variation in governmental incentives is analysed and delivers valuable insight for policymakers interested in spurring the development of green buildings.

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    Bibliographic Info

    Article provided by Emerald Group Publishing in its journal Journal of Financial Economic Policy.

    Volume (Year): 3 (2011)
    Issue (Month): 1 (February)
    Pages: 86-102

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    Handle: RePEc:eme:jfeppp:v:3:y:2011:i:1:p:86-102

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    Web page: http://www.emeraldinsight.com

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    Related research

    Keywords: Environmental regulations; Residential homes; Switzerland;

    References

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    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    1. Thomas H. Klier & Joshua Linn, 2009. "The price of gasoline and the demand for fuel economy: evidence from monthly new vehicles sales data," Working Paper Series WP-09-15, Federal Reserve Bank of Chicago.
    2. Kotchen, Matthew J. & Moore, Michael R., 2007. "Private provision of environmental public goods: Household participation in green-electricity programs," Journal of Environmental Economics and Management, Elsevier, vol. 53(1), pages 1-16, January.
    3. Joni Hersch & W. Kip Viscusi, 2005. "The Generational Divide in Support for Environmental Policies: European Evidence," NBER Working Papers 11859, National Bureau of Economic Research, Inc.
    4. Franz Beyeler & Nick Beglinger & Ursina Roder, 2009. "Minergie: The Swiss Sustainable Building Standard," Innovations: Technology, Governance, Globalization, MIT Press, vol. 4(4), pages 241-244, October.
    5. Kahn Matthew E & Vaughn Ryan K., 2009. "Green Market Geography: The Spatial Clustering of Hybrid Vehicles and LEED Registered Buildings," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 9(2), pages 1-24, March.
    6. Bengt Kristrom & Pere Riera, 1996. "Is the income elasticity of environmental improvements less than one?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 7(1), pages 45-55, January.
    7. Galeotti, Marzio & Lanza, Alessandro & Pauli, Francesco, 2006. "Reassessing the environmental Kuznets curve for CO2 emissions: A robustness exercise," Ecological Economics, Elsevier, vol. 57(1), pages 152-163, April.
    8. Delmas, Magali A. & Grant, Laura E., 2008. "Eco-Labeling Strategies: The Eco-Premium Puzzle In The Wine Industry," Working Papers 37325, American Association of Wine Economists.
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