The role of public information in increasing homebuyers' willingness-to-pay for green housing: Evidence from Beijing

Zhang, L.; Sun, Cong; Liu, Hongyu; Zheng, Siqi

doi:10.1016/j.ecolecon.2016.05.010

Cited by 63 publications

(43 citation statements)

References 26 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Thus, the present findings can provide useful experiences for policy makers and other institutions in other developing countries. Third, previous studies on the WTP for GH were mentioned previously in Nanjing [14] and Beijing [23], which are First-tier cities. To our knowledge, there was little research in the Second-tier cities, and therefore the findings can be extended to the mass cities in China.…”

Section: Developermentioning

confidence: 99%

Key Factors Affecting Informed Consumers’ Willingness to Pay for Green Housing: A Case Study of Jinan, China

Lin

Chen

et al. 2018

Sustainability

View full text Add to dashboard Cite

Abstract:In recent years, the issues of large energy consumption and degraded living environments have attracted considerable attention in developed and developing countries. Hence, green housing (GH) has become a popular strategy for achieving sustainable urbanization. The demand in the GH market played an important role in promoting GH. In China, whether potential consumers will pay for GH remains unclear. In this circumstance, this study aims to explore the willingness of construction practitioners, who are regarded to have more knowledge concerning GH, to pay for GH in China. Based on the theory of planned behavior (TPB), nine critical factors related to practitioners' willingness to pay (WTP) were examined through face-to-face interviews using a questionnaire survey. A total of 180 construction participants in Jinan were investigated in this study. A binary logistic regression model was used to analyze the collected data. The research finding revealed that only 68 respondents were willing to pay for GH. Four factors showed significant and positive influences in practitioners' WTP, including environmental awareness, GH comfort, government incentive, and neighbors'/friends' assessment. By contrast, GH price displayed a significant and negative influence in practitioners' WTP. The remaining factors, namely, mature GH market, degree of popularity, publicity of GH from developers, and GH affordability, showed insignificant relationships with the practitioners' WTP. The research findings can provide a helpful reference for policy makers to formulate effective incentive policies in the promotion of GH.

show abstract

Section: Developermentioning

confidence: 99%

Key Factors Affecting Informed Consumers’ Willingness to Pay for Green Housing: A Case Study of Jinan, China

Lin

Chen

et al. 2018

Sustainability

View full text Add to dashboard Cite

show abstract

“…Malaysian residential electricity tariffs, are heavily subsidized and lower than other countries in the region [107]; removing subsidies may increase WTP for CSB while encouraging more sustainable electricity usage. Another barrier to WTP is that public knowledge of green buildings and certification programs tends to be vague and abstract, whereas reliable information about and tangible experience of green buildings are effective at changing perceptions and increasing WTP [54]. This is consistent with spatial correlations in green building diffusion [105,106] and the observation that homebuyers are generally unequipped to calculate trade-offs between future cost savings and increased borrowing [108].…”

Section: Subsidies and Wtpmentioning

confidence: 52%

“…This in turn requires homebuyers with "Willingness to Pay for CSB" that matches existing cost premiums. WTP for green buildings is influenced by several factors including income [53] and exposure to green buildings ("Awareness of CSB Benefits") [54]; the latter forms a potentially important feedback loop. Unfortunately, there is a lack of Malaysian data on WTP and motivating factors for residential green buildings.…”

Section: Willingness To Pay For Csbmentioning

confidence: 99%

The Impact of Subsidies on the Prevalence of Climate-Sensitive Residential Buildings in Malaysia

2017

View full text Add to dashboard Cite

Dependence on air-conditioning (AC) for residential cooling and ventilation is a health and sustainability challenge. In hot temperatures, climate-sensitive buildings (CSB) can complement and/or substitute for AC usage in achieving thermal comfort. Many countries facing such conditions-particularly in tropical climates-are developing quickly, with rising populations and income creating demand for new housing and AC. This presents a window for adoption of CSB but could also result in long term lock-in of AC-dependent buildings. Here, a simple system dynamics model is used to explore the potential and limitations of subsidies to affect futures of housing stock and night-time AC usage in Malaysia. The effectiveness of subsidies in achieving high uptake of CSB and resulting health benefits is highly dependent on homebuyer willingness to pay (WTP). A detailed understanding of WTP in the Malaysian context and factors that can shift WTP is necessary to determine if CSB subsidies can be a good policy mechanism for achieving CSB uptake.

show abstract

“…To estimate the effect of green certification, we need to control for factors such as hotel quality level, location, facility, service, hygiene, hotel brand, scale and age. Considering unobserved characteristics, especially in terms of location and market conditions, we follow Eichholtz, Kok and Quigley () and Zhang, Liu and Wu () to take advantage of the inherent homogeneity between hotels in each group (within a 1 km radius) by including group‐fixed effects in the model, as specified in Equations and :

REVIEW_IE Q_{i} = α_{1} + η_{1} GREE N_{i} + {bold-italicβ}_{bold1} {boldL}_{boldi} + {bold-italicγ}_{bold1} {boldS}_{boldi} + {bold-italicδ}_{bold1} {boldX}_{boldi} + {bold-italicθ}_{bold1} {boldG}_{boldi} + ε_{i},

REVIEW_EN V_{i} = α_{1} + η_{2} GREE N_{i} + {bold-italicβ}_{bold2} {boldL}_{boldi} + {bold-italicγ}_{bold2} {boldS}_{boldi} + {bold-italicδ}_{bold2} {boldX}_{boldi} + {bold-italicθ}_{bold2} {boldG}_{boldi} + ε_{i},

where GREEN i indicates whether hotel i is awarded green certification; G i is a vector of dummies representing the group in which each hotel is located; the other variables are the same as in Equation . The results are reported in Table .…”

Section: Empirical Analysismentioning

confidence: 99%

“…, Shen, Zhang and Long ). Although extensive studies about office and housing markets have proved that price premium plays a pivotal role in attracting investment in green offices and residential properties by providing economic returns to offset green incremental costs (Eichholtz, Kok and Quigley , Brounen and Kok , Fuerst and McAllister , b, Freybote, Sun and Yang , Zhang, Liu and Wu , Holtermans and Kok ), evidence on the profitability of green hotels is still tenuous (Butler , Kang et al . ).…”

Section: Introductionmentioning

confidence: 99%

The Value of Going Green in the Hotel Industry: Evidence from Beijing

Zhang

Liu

2017

Real Estate Economics

Self Cite

View full text Add to dashboard Cite

Based on several unique datasets in Beijing, this article investigates the value of going green in the hotel industry by combining the traditional hedonic pricing model with the state‐of‐the‐art content analysis of online reviews. The results indicate that the rate of complaints about the indoor environmental quality of green hotels is roughly 19% lower than that for nongreen hotels. Hedonic regression analysis concludes that green hotels enjoy a significant room rate premium of 6.5% without reducing occupancy rates, mainly due to improved indoor environmental quality. Recognizing the presence of such cobenefits is likely to induce hoteliers to embrace green practices.

show abstract

The role of public information in increasing homebuyers' willingness-to-pay for green housing: Evidence from Beijing

Cited by 63 publications

References 26 publications

Key Factors Affecting Informed Consumers’ Willingness to Pay for Green Housing: A Case Study of Jinan, China

Key Factors Affecting Informed Consumers’ Willingness to Pay for Green Housing: A Case Study of Jinan, China

The Impact of Subsidies on the Prevalence of Climate-Sensitive Residential Buildings in Malaysia

The Value of Going Green in the Hotel Industry: Evidence from Beijing

Contact Info

Product

Resources

About