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Different grades and different green premiums: a cross sectional analysis of a green certification scheme
Wadu Mesthrige, Jayantha Oladinrin, Olugbenga Timo Javed, AA
Wadu Mesthrige, Jayantha
Oladinrin, Olugbenga Timo
Javed, AA
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2021-07-18
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Abstract
Green certification is often hailed as an effective means of resolving information asymmetry by providing prospective buyers with credible proof of a property’s level of quantitative sustainability performance. These certification schemes are also considered as providing the credible identification labels needed to generate a market premium. This study analysed whether different market premiums (financial implications) exist across different ratings of the HK-BEAM certification scheme. The paper used hedonic price model (HPM) to evaluate the influence of green certification rating levels on residential property prices in Hong Kong. The results indicate, on average, that HK-BEAM certification increases price values by between 5.3% and 6.7%. Most importantly, the results indicate that significant price premium differences exist across the different ratings available for HK-BEAM certified buildings. The findings provide strong proof of the existence of a premium across ratings.
Citation
Jayantha Wadu Mesthrige, O.T. Oladinrin & A.A. Javed (2020) Different grades and different green premiums: a cross sectional analysis of a green certification scheme, Pacific Rim Property Research Journal, 26(3), pp. 207-221.
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Journal article
Language
en
Description
This is an accepted manuscript of an article published by Taylor and Francis in Pacific Rim Property Research Journal on 18/07/2021, available online: https://doi.org/10.1080/14445921.2021.1943626
The accepted version of the publication may differ from the final published version.
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ISSN
1444-5921
EISSN
2201-6716