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The willingness to pay for green apartments: The case of Nanjing, China

Author

Listed:
  • Hong Hu

    (Utrecht University, The Netherlands)

  • Stan Geertman

    (Utrecht University, The Netherlands)

  • Pieter Hooimeijer

    (Utrecht University, The Netherlands)

Abstract

Faced with the challenge of developing sustainable cities, the Chinese government sets green construction as part of the national strategy to reduce energy consumption. However, the consumer market has shown limited response to such policies. To upscale green building, it is crucial to understand the market demands for green apartments. This article employs a conjoint model to estimate the willingness to pay for green dwellings versus accessibility to metros and jobs and neighbourhood quality by different socio-economic groups in Nanjing, China. Results show that the socio-economic status of homebuyers determines their willingness to pay for green attributes. Only the rich are prepared to pay for green apartments to improve their living comfort. To all, the notion of health is appealing as consumers are willing to pay for an unpolluted environment and for non-toxic construction materials used in buildings in good locations.

Suggested Citation

  • Hong Hu & Stan Geertman & Pieter Hooimeijer, 2014. "The willingness to pay for green apartments: The case of Nanjing, China," Urban Studies, Urban Studies Journal Limited, vol. 51(16), pages 3459-3478, December.
    • Handle: RePEc:sae:urbstu:v:51:y:2014:i:16:p:3459-3478
    DOI: 10.1177/0042098013516686
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    References listed on IDEAS

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    Cited by:

    1. Li, Qianwen & Long, Ruyin & Chen, Hong, 2018. "Differences and influencing factors for Chinese urban resident willingness to pay for green housings: Evidence from five first-tier cities in China," Applied Energy, Elsevier, vol. 229(C), pages 299-313.
    2. Lin Zhang & Liwen Chen & Zezhou Wu & Hong Xue & Wenlin Dong, 2018. "Key Factors Affecting Informed Consumers’ Willingness to Pay for Green Housing: A Case Study of Jinan, China," Sustainability, MDPI, vol. 10(6), pages 1-16, May.
    3. Zhang, Li & Sun, Cong & Liu, Hongyu & Zheng, Siqi, 2016. "The role of public information in increasing homebuyers' willingness-to-pay for green housing: Evidence from Beijing," Ecological Economics, Elsevier, vol. 129(C), pages 40-49.
    4. Zhang, Li & Wu, Jing & Liu, Hongyu, 2018. "Policies to enhance the drivers of green housing development in China," Energy Policy, Elsevier, vol. 121(C), pages 225-235.
    5. Andrea Chegut & Piet Eichholtz & Rogier Holtermans & Juan Palacios, 2020. "Energy Efficiency Information and Valuation Practices in Rental Housing," The Journal of Real Estate Finance and Economics, Springer, vol. 60(1), pages 181-204, February.
    6. Jia, Jun–Jun & Wu, Hua-Qing & Nie, Hong-Guang & Fan, Ying, 2019. "Modeling the willingness to pay for energy efficient residence in urban residential sector in China," Energy Policy, Elsevier, vol. 135(C).
    7. Lin Zhang & Liwen Chen & Zezhou Wu & Sizhen Zhang & Huanbin Song, 2018. "Investigating Young Consumers’ Purchasing Intention of Green Housing in China," Sustainability, MDPI, vol. 10(4), pages 1-15, April.
    8. van Middelkoop, Manon & Vringer, Kees & Visser, Hans, 2017. "Are Dutch residents ready for a more stringent policy to enhance the energy performance of their homes?," Energy Policy, Elsevier, vol. 105(C), pages 269-282.

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