Factors affecting homebuyers' willingness to pay green building price premium: Evidence from a nationwide survey in Israel

Portnov, Boris A.; Trop, Tamar; Svechkina, Alina; Ofek, Shoshi; Akron, Sagi; Ghermandi, Andrea

doi:10.1016/j.buildenv.2018.04.014

Cited by 89 publications

(85 citation statements)

References 67 publications

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“…Study showed that financial incentives, such as tax breaks and subsidized loans have negative impact on WTP of price premium for renovation. This shows that stronger economic incentives have negative impact on WTP of PP Therefore, this study [145] extends the state of the art on the subject by showing, rather counterintuitively, that once off, short-term financial incentives are likely to affect negatively the size of the acceptable PP that potential homebuyers are willing to pay for green buildings and this is in line with behavioral economics observations of crowding effect [118].…”

Section: Wtp For Energy Efficiency Improvements In Householdssupporting

confidence: 84%

“…It is important to note, that financial incentives and grants and their impact on WTP for energy efficiency improvement measures in households were examined in details by most studies dealing with WTP for energy renovation [61,138,140,143,145], however these studies revealed contradictory results especially in terms of the impacts of subsidies and loans on WTP for energy efficiency improvements in households. The size of the acceptable price premium, that potential homebuyers are willing to pay for green buildings, is likely to be affected negatively by short-term financial incentives proposed by the government.…”

Section: Discussion Of Resultsmentioning

confidence: 99%

“…Portnov et al [145] conducted an online households survey in Israel. The study showed that potential homebuyers having lower familiarity with green buildings' (GB) advantages, were willing to pay a lower price premium (PP) then those having higher familiarity about green buildings concept and their advantages and comfort.…”

Section: Wtp For Energy Efficiency Improvements In Householdsmentioning

confidence: 99%

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A Review of Willingness to Pay Studies for Climate Change Mitigation in the Energy Sector

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A wide range of climate change mitigation policies have been developed around the world and these policies have become one of the major concerns, however there is still debate among scientists about what are the main external benefits and how to account for them and prepare effective climate change mitigation policies that might be widely accepted by society in general. One of the main ways to assess external benefit of climate change mitigation in energy sector is to conduct Willingness to Pay (WTP) assessments for climate change mitigation options by households. There are many studies on WTP assessment for climate stability conducted in recent years. The paper surveys the existing literature on WTP for climate change mitigation policy in the energy sector. The aim of the paper is to identify the common variables across a varied set of WTP studies in order to establish a basis for comparison. The key variables selected for analysis of WTP studies for climate change mitigation in energy sector addressed in the paper are: the WTP assessment methods; the main attributes used for comparing alternatives in WTP studies, targeted climate change mitigation policies in energy sector, mathematical model used to estimate WTP, the main socio-demographic factors having impact on WTP for climate change mitigation policies. The analysis of WTP studies for climate change mitigation is grouped in two areas: renewables and energy efficiency measures in households. The paper provides analytical structure for future studies to evaluate the effects of variation in key comparative elements upon WTP.

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Section: Wtp For Energy Efficiency Improvements In Householdssupporting

confidence: 84%

Section: Discussion Of Resultsmentioning

confidence: 99%

Section: Wtp For Energy Efficiency Improvements In Householdsmentioning

confidence: 99%

See 1 more Smart Citation

A Review of Willingness to Pay Studies for Climate Change Mitigation in the Energy Sector

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show abstract

“…The features of green products (e.g., low pollution, recycled materials) may also arouse consumers' feeling of doing something good for the environment [25]. Additionally, the overall environment for the development of GBs, such as the economy and social attitudes, also plays an important role in affecting consumers' green purchasing behavior [26]. Nevertheless, the above studies have neither considered all the aspects of the influencing factors comprehensively nor analyzed how these factors work together to affect consumers' green purchasing behavior.…”

Section: Green Purchasing Behaviormentioning

confidence: 99%

Proposing a Value Field Model for Predicting Homebuyers’ Purchasing Behavior of Green Residential Buildings: A Case Study in China

Yuan

2019

Sustainability

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Understanding the motivations that stimulate homebuyers’ green purchasing behavior can increase market demand for green products, especially considering the comparably low market share of green products worldwide. In this context, various studies have been conducted examining consumers’ intentions to pay for green products. Nevertheless, there is still limited research on evaluating homebuyers’ purchasing behavior toward green residential buildings. This study argues that the value of green residential buildings (GRBs) affects their adoption, and thus exerts an invisible force on homebuyers’ purchasing behavior. It also finds that field theory provides a scientific perspective on this phenomenon. Thus, this paper proposes a value field model for evaluating homebuyers’ GRB purchasing behavior based on physical field theory and psychology field theory. In particular, physical field theory provides the measurement formula, while psychological field theory explains the effect of the force stimulating homebuyers’ purchasing intention, and ultimately influencing their purchasing behavior. The initial model consisted of a field source (green perceived value), target charge (GRB demand), distance (psychological distance), and value field factor. As the value field factor was calculated to be approximately equal to 1, the final model is a composite of a field source (green perceived value), target charge (GRB demand), and distance (psychological distance). The results validate the construction of the value field model on the basis of field theory. This research contributes to the body of knowledge by analyzing GRB value and provides a clearer understanding of how GRBs and the environment combine to fulfill homebuyers’ requirements and influence their GRB purchasing behavior.

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“…They found that potential energy and maintenance savings and increases in real estate values are the main forces driving consumers' decisions [58]. Maintenance savings are one of the vital factors positively related to GB premium size [59]. By contrast, energy price increases and striving for innovation are the main factors influencing developers' decisions [58].…”

Section: Economic Benefitsmentioning

confidence: 99%

A Survey of the Status and Challenges of Green Building Development in Various Countries

et al. 2019

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Since the energy crisis in the 1960s, crucial research and activities were spurred to improve energy efficiency and decrease environmental pollution. To deal with the various problems the construction industry are facing, the concept of green buildings (GBs) has been gradually shaped and put forward all over the world, and green building rating systems (GBRSs) have been developed. The concept of GBs covers a wide range of elements, and its definition is constantly updated as the construction industry develops. This paper compares the development of backgrounds and statuses of green building development in various countries. It also presents an overview of the green building development situation within these countries, summarizing two influences for GB development: one external and the other internal. External factors include GB development policy support, economic benefits, and certification schemes. Internal factors are the development and application of GB technology, the level of building management, and how users interact with the GB technology. Currently, 49 worldwide green building standards and application have been sorted out, including 18 standard expert appraisal systems. Moreover, it discusses the research results and lessons learned from green building projects in different countries and summarizes their achievements and challenges. To correctly understand and use green building technology, it is essential to improve the policy and incentive system, improve the professional quality and technical ability of employees and accredited consultants, constantly develop and update the evaluation system, strengthen technological innovation, and integrate design and management. This paper aims to draw a clear roadmap for national standard development, policy formulation, and construction design companies, provide solutions to remove the obstacles, and suggest research direction for future studies.

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Factors affecting homebuyers' willingness to pay green building price premium: Evidence from a nationwide survey in Israel

Cited by 89 publications

References 67 publications

A Review of Willingness to Pay Studies for Climate Change Mitigation in the Energy Sector

A Review of Willingness to Pay Studies for Climate Change Mitigation in the Energy Sector

Proposing a Value Field Model for Predicting Homebuyers’ Purchasing Behavior of Green Residential Buildings: A Case Study in China

A Survey of the Status and Challenges of Green Building Development in Various Countries

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