IDEAS home Printed from https://ideas.repec.org/p/afr/wpaper/2022-032.html
   My bibliography  Save this paper

Willingness To Pay For Green Buildings In Ghana: The Impact Of Benefit Sensitisation

Author

Listed:
  • Yelly Kwesy Lawluvy
  • Albert Agbeko Ahiadu
  • Olivia Kwakyewaa Ntim

Abstract

Global discourse on sustainable construction has aroused great interest in the need for green building proliferation as a strategic means to reduce the environmental harms of conventional buildings. However, green building adoption remains laggard in Ghana as individuals are unwilling to pay extra for green buildings. Researchers have made many recommendations to enhance willingness to pay, recurrent amongst which is benefit sensitisation. However, the impact of benefit sensitisation, especially in the Ghanaian market, remained unproven and unquantified. This study provides clarity to the issue by investigating and quantifying the impact of an undertaken green building benefit sensitisation on the willingness to pay of 630 participants who were unaware of the individual-level benefits of green buildings. The study confirmed a significant impact of benefit sensitisation on willingness to pay for green buildings. After benefit sensitisation, respondents who were initially only willing to pay up to a 5% premium became willing to pay an average of 6 - 10% premium; with only 14.8% of respondents maintaining an unwillingness to pay extra for green buildings.

Suggested Citation

  • Yelly Kwesy Lawluvy & Albert Agbeko Ahiadu & Olivia Kwakyewaa Ntim, 2022. "Willingness To Pay For Green Buildings In Ghana: The Impact Of Benefit Sensitisation," AfRES 2022-032, African Real Estate Society (AfRES).
    • Handle: RePEc:afr:wpaper:2022-032
    as

    Download full text from publisher

    File URL: https://afres.architexturez.net/doc/oai-afres-id-2022-032
    Download Restriction: no
    File URL: https://afres.architexturez.net/system/files/afres-2022-fp-17.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    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. Yelly Kwesy Lawluvy & Olivia Kwakyewaa Ntim & Albert Agbeko Ahiadu, 2022. "Willingness To Pay For Green Buildings In Ghana: What Are The Influencing Factors?," AfRES 2022-052, African Real Estate Society (AfRES).
    3. Vincent Kpamsar Takuh & Fidelis Awa Abang & Saheed Olayinka Akinyemi, 2021. "Effect of Satisfaction with Conventional Housing on Willingness to Pay for Green Buildings in Makurdi," Traektoriâ Nauki = Path of Science, Altezoro, s.r.o. & Dialog, vol. 7(12), pages 2024-2030, December.
    4. Arnold Tukker, 2005. "Leapfrogging into the future: developing for sustainability," International Journal of Innovation and Sustainable Development, Inderscience Enterprises Ltd, vol. 1(1/2), pages 65-84.
    5. 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.
    6. Yotam Rosner & Zohara Amitay & Amotz Perlman, 2022. "Consumer's attitude, socio-demographic variables and willingness to purchase green housing in Israel," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(4), pages 5295-5316, April.
    7. Pleasa Serin Abraham & Haripriya Gundimeda, 2020. "Greening offices: Willingness to pay for green-certified office spaces in Bengaluru, India," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(3), pages 1839-1857, March.
    8. Zhao, Dong-Xue & He, Bao-Jie & Johnson, Christine & Mou, Ben, 2015. "Social problems of green buildings: From the humanistic needs to social acceptance," Renewable and Sustainable Energy Reviews, Elsevier, vol. 51(C), pages 1594-1609.
    9. Khan, Rana Asad Javid & Thaheem, Muhammad Jamaluddin & Ali, Tauha Hussain, 2020. "Are Pakistani homebuyers ready to adopt sustainable housing? An insight into their willingness to pay," Energy Policy, Elsevier, vol. 143(C).
    10. Vincent Kpamsar Takuh & Adegbenga Adeyemi & Muhammad Umar Bello, 2021. "Willingness to Pay for Green Building Features in the Medium-Income Residential Market of Makurdi, Nigeria," Traektoriâ Nauki = Path of Science, Altezoro, s.r.o. & Dialog, vol. 7(11), pages 4036-4045, November.
    11. Nguyen, Hong-Trang & Skitmore, Martin & Gray, Matthew & Zhang, Xiaoling & Olanipekun, Ayokunle Olubunmi, 2017. "Will green building development take off? An exploratory study of barriers to green building in Vietnam," Resources, Conservation & Recycling, Elsevier, vol. 127(C), pages 8-20.
    Full references (including those not matched with items on IDEAS)

    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. Shiwen Zhao & Liwen Chen, 2021. "Exploring Residents’ Purchase Intention of Green Housings in China: An Extended Perspective of Perceived Value," IJERPH, MDPI, vol. 18(8), pages 1-19, April.
    2. 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).
    3. Xiaoyun Zhang & Feng Dong, 2020. "Why Do Consumers Make Green Purchase Decisions? Insights from a Systematic Review," IJERPH, MDPI, vol. 17(18), pages 1-25, September.
    4. 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.
    5. Yunxia Liu & Xunpeng Shi & Ya Ping Wang & Tao Sun, 2019. "Promoting Green Residential Buildings in China: Bridging the Gap between Design and Operation to Improve Occupants’ Residential Satisfaction," Sustainability, MDPI, vol. 11(13), pages 1-18, June.
    6. Wei Ren & Yaxiao Wang, 2023. "Study on the Factors Affecting the Green Housing Purchase Intention in Urban Residents—Taking the Beijing-Tianjin-Hebei Region as an Example," Sustainability, MDPI, vol. 15(4), pages 1-16, February.
    7. Wengang Zhang & Baiqing Sun & Feng Xu, 2020. "Promoting Green Product Development Performance via Leader Green Transformationality and Employee Green Self-Efficacy: The Moderating Role of Environmental Regulation," IJERPH, MDPI, vol. 17(18), pages 1-17, September.
    8. Patrick Schroeder & Manisha Anantharaman, 2017. "“Lifestyle Leapfrogging” in Emerging Economies: Enabling Systemic Shifts to Sustainable Consumption," Journal of Consumer Policy, Springer, vol. 40(1), pages 3-23, March.
    9. Martina Schäfer & Melanie Jaeger-Erben & Aguinaldo Santos, 2011. "Leapfrogging to Sustainable Consumption? An Explorative Survey of Consumption Habits and Orientations in Southern Brazil," Journal of Consumer Policy, Springer, vol. 34(1), pages 175-196, March.
    10. Poustie, Michael S. & Frantzeskaki, Niki & Brown, Rebekah R., 2016. "A transition scenario for leapfrogging to a sustainable urban water future in Port Vila, Vanuatu," Technological Forecasting and Social Change, Elsevier, vol. 105(C), pages 129-139.
    11. Chakravarty, Sujoy & Mishra, Rajan, 2019. "Using social norms to reduce paper waste: Results from a field experiment in the Indian Information Technology sector," Ecological Economics, Elsevier, vol. 164(C), pages 1-1.
    12. Yongsheng Jiang & Dong Zhao & Dedong Wang & Yudong Xing, 2019. "Sustainable Performance of Buildings through Modular Prefabrication in the Construction Phase: A Comparative Study," Sustainability, MDPI, vol. 11(20), pages 1-15, October.
    13. Chenxi Li & Xing Gao & Bao-Jie He & Jingyao Wu & Kening Wu, 2019. "Coupling Coordination Relationships between Urban-industrial Land Use Efficiency and Accessibility of Highway Networks: Evidence from Beijing-Tianjin-Hebei Urban Agglomeration, China," Sustainability, MDPI, vol. 11(5), pages 1-23, March.
    14. Lee, Kyung-Sook & Kim, Ju-Hee & Yoo, Seung-Hoon, 2021. "Would people pay a price premium for electricity from domestic wind power facilities? The case of South Korea," Energy Policy, Elsevier, vol. 156(C).
    15. Felipe Encinas & Carlos Marmolejo-Duarte & Carlos Aguirre-Nuñez & Francisco Vergara-Perucich, 2020. "When Residential Energy Labeling Becomes Irrelevant: Sustainability vs. Profitability in the Liberalized Chilean Property Market," Sustainability, MDPI, vol. 12(22), pages 1-17, November.
    16. Kosorić, Vesna & Huang, Huajing & Tablada, Abel & Lau, Siu-Kit & Tan, Hugh T.W., 2019. "Survey on the social acceptance of the productive façade concept integrating photovoltaic and farming systems in high-rise public housing blocks in Singapore," Renewable and Sustainable Energy Reviews, Elsevier, vol. 111(C), pages 197-214.
    17. Mahesti Okitasari & Ranjeeta Mishra & Masachika Suzuki, 2022. "Socio-Economic Drivers of Community Acceptance of Sustainable Social Housing: Evidence from Mumbai," Sustainability, MDPI, vol. 14(15), pages 1-17, July.
    18. Peng Zhang & Guojin Qin & Yihuan Wang, 2018. "Optimal Maintenance Decision Method for Urban Gas Pipelines Based on as Low as Reasonably Practicable Principle," Sustainability, MDPI, vol. 11(1), pages 1-19, December.
    19. Liu, Zhijian & Liu, Yuanwei & He, Bao-Jie & Xu, Wei & Jin, Guangya & Zhang, Xutao, 2019. "Application and suitability analysis of the key technologies in nearly zero energy buildings in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 101(C), pages 329-345.
    20. David T. Tan & Yi Gong & José Gabriel Siri, 2017. "The Impact of Subsidies on the Prevalence of Climate-Sensitive Residential Buildings in Malaysia," Sustainability, MDPI, vol. 9(12), pages 1-26, December.

    More about this item

    Keywords

    sustainability; Benefit Sensitization; Ghana; Green building; Willingness to Pay;
    All these keywords.

    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:afr:wpaper:2022-032. 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: Architexturez Imprints (email available below). General contact details of provider: https://edirc.repec.org/data/afresea.html .

    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.