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Taking the LEED? Analyzing Spatial Variations in Market Penetration Rates of Eco-Labeled Properties

Author

Listed:
  • Franz Fuerst

    () (School of Real Estate & Planning, Henley Business School, University of Reading)

  • Constantine Kontokosta

    () (New York University)

  • Pat McAllister

    () (School of Real Estate & Planning, Henley Business School, University of Reading)

Abstract

This paper investigates the impact of policies to promote the adoption of LEED-certified buildings across CBSA in the United States. Drawing upon a unique database that combines data from a large number of sources and using a number of regression procedures, the determinants of the proportion LEED-certified space for more than 170 CBSA in the US is modeled. LEED-certified space still accounts for a relatively small proportion of commercial stock in all markets. The average proportion is less than 1%. There is no conclusive evidence of a positive impact of policy intervention on the levels of LEED-certified space. However, after accounting for bias introduced by non-random assignment of policies, we find preliminary evidence of a positive impact of city-level green building incentives. There is a significant positive association between market size and indicators of economic vitality on proportions of LEED-certified space.

Suggested Citation

  • 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, Reading University.
  • Handle: RePEc:rdg:repxwp:rep-wp2011-01
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    File URL: http://www.reading.ac.uk/REP/fulltxt/1011.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    energy efficiency; LEED; real estate; innovation diffusion; eco-labeling;

    JEL classification:

    • R33 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Nonagricultural and Nonresidential Real Estate Markets

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