Economic Analysis of Korea Green Building Certification System in the Capital Area Using House-Values Index

Abstract

Since 1980, there have been widespread efforts by international organizations, governments, and research centers to achieve sustainable development. In Korea, green building certification has been developed and adopted for various types of buildings. However, although research has been conducted regarding the economic benefits of the Korean green building certification system, no research efforts have compared the average house-values between green building certified and non-certified buildings. In addition, there is a lack of research concerning the impact of public transit on the average house-values in certified green buildings. The objective of this study is to investigate the economic benefits of green certified buildings using the average house-values index and to identify how proximity to public transit affects building values. According to the findings, house-values are higher for green certified buildings than for non-certified buildings. Furthermore, house values increase with proximity to bus stops. These results reflect the potential economic gain from a utilization of the Korean green building certification system (K-GBCS). In addition, by illustrating the economic benefits of the system, this study could encourage major stakeholders to use the K-GBCS.

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