IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v14y2021i7p1971-d529390.html
   My bibliography  Save this article

Green Building Adoption on Office Markets in Europe: An Empirical Investigation into LEED Certification

Author

Listed:
  • Michal Gluszak

    (Department of Real Estate and Investment Economics, Cracow University of Economics, ul. Rakowicka 27, 31-510 Krakow, Poland)

  • Agnieszka Malkowska

    (Department of Real Estate and Investment Economics, Cracow University of Economics, ul. Rakowicka 27, 31-510 Krakow, Poland)

  • Bartłomiej Marona

    (Department of Real Estate and Investment Economics, Cracow University of Economics, ul. Rakowicka 27, 31-510 Krakow, Poland)

Abstract

The goal of the paper is to evaluate the impact of selected factors on the adoption of LEED (Leadership in Energy and Environmental Design) green building certification in Europe. In the empirical part of the paper we track the fraction of LEED-registered office space in selected European cities, and assess the impact of selected socioeconomic and environmental factors on the certification adoption rate. This research contributes to the ongoing debate about the adoption of green buildings in commercial property markets. In this paper, we investigate factors affecting the adoption of LEED certification using the Arellano and Bond generalized method-of-moments estimator. Compared to prior studies, which relied on cross-sectional data, our research uses a panel approach to investigate the changes in green building adoption rates in selected European cities. Among the cities that are quickly adopting LEED are Frankfurt, Warsaw, Stockholm, and Dublin. The adoption process was not equally fast in Brussels and Copenhagen. Using the dynamic panel model approach, we found that the adoption of green building certification is linked to overall innovativeness in the economy and the perceived greenness of the city. Contrary to some previous studies we did not observe links between the size of the office market and the LEED adoption rate.

Suggested Citation

  • Michal Gluszak & Agnieszka Malkowska & Bartłomiej Marona, 2021. "Green Building Adoption on Office Markets in Europe: An Empirical Investigation into LEED Certification," Energies, MDPI, vol. 14(7), pages 1-12, April.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:7:p:1971-:d:529390
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/14/7/1971/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/14/7/1971/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Wei Wang & Shoujian Zhang & Yikun Su & Xinyang Deng, 2018. "Key Factors to Green Building Technologies Adoption in Developing Countries: The Perspective of Chinese Designers," Sustainability, MDPI, vol. 10(11), pages 1-22, November.
    2. Olsthoorn, Mark & Schleich, Joachim & Faure, Corinne, 2019. "Exploring the diffusion of low-energy houses: An empirical study in the European Union," Energy Policy, Elsevier, vol. 129(C), pages 1382-1393.
    3. Ben Hoen & Marcelo Cajias & Ralf Hohenstatt, 2017. "Societal Influence on Diffusion of Green Buildings - A Count Regression Approach," Journal of Real Estate Research, American Real Estate Society, vol. 39(1), pages 1-38.
    4. Edyta Plebankiewicz & Michał Juszczyk & Renata Kozik, 2019. "Trends, Costs, and Benefits of Green Certification of Office Buildings: A Polish Perspective," Sustainability, MDPI, vol. 11(8), pages 1-17, April.
    5. Maria Urbaniec, 2015. "Sustainable Development Indicators in Poland: Measurement and System Evaluation," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 3(1), pages 119-134.
    6. Wei Wang & Shoujian Zhang & Yikun Su & Xinyang Deng, 2019. "An Empirical Analysis of the Factors Affecting the Adoption and Diffusion of GBTS in the Construction Market," Sustainability, MDPI, vol. 11(6), pages 1-24, March.
    7. Nils Kok & Marquise McGraw & John M. Quigley, 2011. "The Diffusion of Energy Efficiency in Building," American Economic Review, American Economic Association, vol. 101(3), pages 77-82, May.
    8. Xiaohuan Xie & Shiyu Qin & Zhonghua Gou & Ming Yi, 2020. "Can Green Building Promote Pro-Environmental Behaviours? The Psychological Model and Design Strategy," Sustainability, MDPI, vol. 12(18), pages 1-18, September.
    9. Piet Eichholtz & Nils Kok & John M. Quigley, 2010. "Doing Well by Doing Good? Green Office Buildings," American Economic Review, American Economic Association, vol. 100(5), pages 2492-2509, December.
    10. Martin J. Beckmann, 1970. "The Analysis Of Spatial Diffusion Processes," Papers in Regional Science, Wiley Blackwell, vol. 25(1), pages 109-117, April.
    11. Franz Fuerst & Constantine Kontokosta & Patrick McAllister, 2014. "Determinants of Green Building Adoption," Environment and Planning B, , vol. 41(3), pages 551-570, June.
    12. Maryam Khoshbakht & Zhonghua Gou & Xiaohuan Xie & Baojie He & Amos Darko, 2018. "Green Building Occupant Satisfaction: Evidence from the Australian Higher Education Sector," Sustainability, MDPI, vol. 10(8), pages 1-21, August.
    13. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Seeram Ramakrishna & Muhammad Pervaiz & Jimi Tjong & Patrizia Ghisellini & Mohini M Sain, 2022. "Low-Carbon Materials: Genesis, Thoughts, Case Study, and Perspectives," Circular Economy and Sustainability,, Springer.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sayani Saha & Rahul B Hiremath & Sanjay Prasad & Bimlesh Kumar, 2021. "Barriers to Adoption of Commercial Green Buildings in India: A Review," Journal of Infrastructure Development, India Development Foundation, vol. 13(2), pages 107-128, December.
    2. Niina Leskinen & Jussi Vimpari & Seppo Junnila, 2020. "A Review of the Impact of Green Building Certification on the Cash Flows and Values of Commercial Properties," Sustainability, MDPI, vol. 12(7), pages 1-22, March.
    3. Helen Bao & Haotong Li, 2017. "CEO Overconfidence in Real Estate Markets: A Curse or A Blessing?," ERES eres2017_157, European Real Estate Society (ERES).
    4. Fuerst, Franz & Gabrieli, Tommaso & McAllister, Patrick, 2017. "A green winner's curse? Investor behavior in the market for eco-certified office buildings," Economic Modelling, Elsevier, vol. 61(C), pages 137-146.
    5. Chegut, Andrea & Eichholtz, Piet & Kok, Nils, 2019. "The price of innovation: An analysis of the marginal cost of green buildings," Journal of Environmental Economics and Management, Elsevier, vol. 98(C).
    6. 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.
    7. He, Jia & Wu, Jing, 2016. "Doing well by doing good? The case of housing construction quality in China," Regional Science and Urban Economics, Elsevier, vol. 57(C), pages 46-53.
    8. Weimin Ma & Zitong Ren & Hua Ke, 2022. "Green Housing Subsidy Strategies Considering Consumers’ Green Preference," Sustainability, MDPI, vol. 14(5), pages 1-22, February.
    9. Kok, Nils & Jennen, Maarten, 2012. "The impact of energy labels and accessibility on office rents," Energy Policy, Elsevier, vol. 46(C), pages 489-497.
    10. Franz Fuerst & Constantine Kontokosta & Pat McAllister, 2011. "Taking the LEED? Analyzing Spatial Variations in Market Penetration Rates of Eco-Labeled Properties," Real Estate & Planning Working Papers rep-wp2011-01, Henley Business School, University of Reading.
    11. Kahn, Matthew E. & Walsh, Randall, 2015. "Cities and the Environment," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 405-465, Elsevier.
    12. Deng, Yongheng & Wu, Jing, 2014. "Economic returns to residential green building investment: The developers' perspective," Regional Science and Urban Economics, Elsevier, vol. 47(C), pages 35-44.
    13. Odilon Costa & Franz Fuerst & Spenser Robinson & Wesley Mendes-da-Silva, 2017. "Are Green Labels More Valuable in Emerging Real Estate Markets?," LARES lares_2017_paper_5, Latin American Real Estate Society (LARES).
    14. Alberto Gago & Michael Hanemann & Xavier Labandeira & Ana Ramos, 2013. "Climate change, buildings and energy prices," Chapters, in: Roger Fouquet (ed.), Handbook on Energy and Climate Change, chapter 19, pages 434-452, Edward Elgar Publishing.
    15. Liao, Wen-Chi & Zhao, Daxuan, 2019. "The selection and quantile treatment effects on the economic returns of green buildings," Regional Science and Urban Economics, Elsevier, vol. 74(C), pages 38-48.
    16. Deng, Yongheng & Li, Zhiliang & Quigley, John M., 2012. "Economic returns to energy-efficient investments in the housing market: Evidence from Singapore," Regional Science and Urban Economics, Elsevier, vol. 42(3), pages 506-515.
    17. Avis Devine & Andrew Sanderford & Chongyu Wang, 2024. "Sustainability and Private Equity Real Estate Returns," The Journal of Real Estate Finance and Economics, Springer, vol. 68(2), pages 161-187, February.
    18. Bian, Xueying & Fabra, Natalia, 2020. "Incentives for information provision: Energy efficiency in the Spanish rental market," Energy Economics, Elsevier, vol. 90(C).
    19. Dong Hyun Kim & Amina Irakoze, 2022. "Identifying Market Segment for the Assessment of a Price Premium for Green Certified Housing: A Cluster Analysis Approach," Sustainability, MDPI, vol. 15(1), pages 1-16, December.
    20. Wenxi Zhu & Jing Zhang & Jinfei Dai & Da Wang & Chongsen Ma & Yufang Xu & Yun Chen, 2023. "Study on the Spatiotemporal Evolution Characteristics and Influencing Factors on Green Building Development of City Clusters in the Yangtze River Delta Region in China," Sustainability, MDPI, vol. 15(12), pages 1-20, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:14:y:2021:i:7:p:1971-:d:529390. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.