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The value of green certification in the Singapore housing market

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  • Fesselmeyer, Eric

Abstract

In Singapore, a real estate developer sells new apartments in the same high-rise development before and after obtaining green certification. This allows the use of within-development variation in prices over time to measure the effect of green certification on housing prices, controlling for differences across developments. I find that green certification increases prices by around 3%, suggesting that buyers value certification, possibly because it signals the presence of less-salient green features. Moreover, the effect of certification is biggest for developments that receive the lowest green rating, which likely have fewer green features and are thus less obviously green.

Suggested Citation

  • Fesselmeyer, Eric, 2018. "The value of green certification in the Singapore housing market," Economics Letters, Elsevier, vol. 163(C), pages 36-39.
    • Handle: RePEc:eee:ecolet:v:163:y:2018:i:c:p:36-39
    DOI: 10.1016/j.econlet.2017.11.033
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    References listed on IDEAS

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    Cited by:

    1. Evangelista, Rui & Ramalho, Esmeralda A. & Andrade e Silva, João, 2020. "On the use of hedonic regression models to measure the effect of energy efficiency on residential property transaction prices: Evidence for Portugal and selected data issues," Energy Economics, Elsevier, vol. 86(C).
    2. Louis-Gaëtan Giraudet, 2018. "Energy efficiency as a credence good: A review of informational barriers to building energy savings," Policy Papers 2018.04, FAERE - French Association of Environmental and Resource Economists.
    3. Lihong Chen & Kexin Qie & Hafeezullah Memon & Hanur Meku Yesuf, 2021. "The Empirical Analysis of Green Innovation for Fashion Brands, Perceived Value and Green Purchase Intention—Mediating and Moderating Effects," Sustainability, MDPI, vol. 13(8), pages 1-17, April.
    4. Giraudet, Louis-Gaëtan, 2020. "Energy efficiency as a credence good: A review of informational barriers to energy savings in the building sector," Energy Economics, Elsevier, vol. 87(C).
    5. März, Steven & Stelk, Ines & Stelzer, Franziska, 2022. "Are tenants willing to pay for energy efficiency? Evidence from a small-scale spatial analysis in Germany," Energy Policy, Elsevier, vol. 161(C).
    6. Zhengda Li & Wanping Yang & Chengjun Wang & Yuesheng Zhang & Xiaoling Yuan, 2019. "Guided High-Quality Development, Resources, and Environmental Forcing in China’s Green Development," Sustainability, MDPI, vol. 11(7), pages 1-18, April.
    7. Rui Evangelista & Esmeralda A. Ramalho & João Andrade e Silva, 2019. "On the use of Hedonic Regression Models to Measure the Effect of Energy Efficiency on Residential Property Transaction Prices: Evidence for Portugal and Selected Data Issues," Working Papers REM 2019/64, ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa.

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    More about this item

    Keywords

    Green building; Green labels; Sustainability; Housing prices;
    All these keywords.

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

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