eco labeling in commercial office markets do leed and energy star offices obtain multiple premiums this paper investigates the effect of eco labeling on rental rates sale prices and occupancy rates the consensus emerging from previous studies appears to be that investors in and occupiers of eco labeled buildings obtain a bundle of benefits related to lower operating costs reputation benefits and productivity higher in this study a hedonic model is used to test whether the presence of an eco label has a significantly positive effect on rental rates sale prices and occupancy rates of commercial office buildings in the us the results suggest that office buildings with energy star or leed eco labels obtain rental premia of approximately 3 5 dual certification produces an additive effect with rental premia estimated at 9 respective sale price premia for energy star and leed labeled office buildings are 18 and 25 the sale price premium for dual certification is estimated at 28 29 an occupancy premium could not be confirmed for leed labeled office buildings and only a small positive occupancy premium was found for energy star

in search of smoking guns what makes income inequality vary over time in different countries we investigate the forces affecting the distribution of income by analyzing an unbalanced panel of information for 16 industrialized countries for the years 1966 through 1994 income inequality is measured with the gini coefficient of equivalent disposable income individuals are the unit of analysis the statistical analysis uses panel methods the results suggest that many factors affect the development of income inequality some factors are strictly economic a decreased industrial sector generally fosters inequality and some support is found for the view that increased trade of manufactured goods from developing countries is also a factor other forces are outside a strictly defined market sphere low inequality is found when a large proportion of the labor force belongs to a trade union and also when there is a large public sector in addition demographic circumstances are important since the proportion of the population under age 15 has a positive effect on inequality we find however no association between the unemployment rate and inequality

globalization and the great u turn income inequality trends in 16 oecd countries the debate on the resurgence of income inequality in some advanced industrial societies has often focused on the impact of an increasingly integrated world economy typified by growing capital mobility heightened international competition and an increase in migration this study represents one of the first systematic cross national examinations of the role of globalization in the inequality u turn results indicate on the one hand that total inequality variation is principally affected by the percentage of the labor force in agriculture followed by the institutional factors union density and decommodification and only then by globalization on the other hand longitudinal variation in inequality while still dominated by the percentage of the labor force in agriculture is also principally affected by aspects of globalization such as southern import penetration and direct investment outflow and to a lesser extent by migration in other words globalization explains the longitudinal trend of inc

the role of market forces in assuring contractual performance the conditions under which transactors can use the market repeat purchase mechanism of contract enforcement are examined increased price is shown to be a means of assuring contractual performance a necessary and sufficient condition for performance is the existence of price sufficiently above salvageable production costs so that the nonperforming firm loses a discounted steam of rents on future sales which is greater than the wealth increase from nonperformance this will generally imply a market price greater than the perfectly competitive price and rationalize investments in firm specific assets advertising investments thereby become a positive indicator of likely performance

doing good but not that well a dilemma for energy conserving homeowners abstract in this paper the issue of market capitalization of energy efficient buildings is addressed by considering single family housing in sweden and through analyzing as to what extent the market price for a house is influenced by its energy performance are swedish homeowners doing well by doing good we make use of information provided by the swedish energy performance certificates for single family homes matched with data on the corresponding transaction prices household characteristics and attributes of the neighborhood the resulting database covering about 77 000 individual observations is used to analyze the relationship between the price of a house and its energy performance by means of a hedonic model unlike most other studies the energy performance is decomposed into energy consumption and several other variables characterizing the energy system the main question addressed is if there is a price premium for energy efficient housing in sweden our results differ from earlier studies and indicate no price premium related to the energy consumption but substantial premiums for housing attributes that improve the energy efficiency a likely explanation is that prospective buyers of new homes base their expectations about future energy consumption on those attributes rather than on the energy consumption of the previous owner

urban spatial variations in office commercial rents the role of spatial amenities and commercial zoning abstract the paper argues that traditional bid rent modeling is inadequate in providing the framework for empirically analyzing the whole array of location demand and most importantly supply side influences on office commercial rents within multinodal metropolises the analysis then proceeds with an alternative modeling scheme setting the stage for specifying long run reduced form office commercial rent functions differing from traditional hedonic formulations both within competitive and constrained land market settings using recent data on office commercial rents across nodes in greater los angeles the empirical analysis lends considerable support to those alternative model specifications accounting not only for firm amenities but also for worker amenities and local institutional controls

going green does it depend on education gender or income sustainable development entails meeting our present needs without compromising the ability of future generations to meet their needs this requires us to treat economic social and environmental aspects in an integrated way but little is known about the nature of individual preferences towards the trade offs involved in this effort for the first time we study individual preferences towards the environment social well being and financial well being by using a survey of over 1400 households in the netherlands using nonparametric parametric and matching methods we find that gender and education are important factors for sustainability rather than income levels moreover results indicate that educated females put the greatest value on going green whilst being socially minded

residential energy use and conservation economics and demographics energy consumption in the residential sector offers an important opportunity for conserving resources however much of the current debate regarding energy efficiency in the housing market focuses on the physical and technical determinants of energy consumption neglecting the role of the economic behavior of resident households in this paper we analyze the extent to which the use of gas and electricity is determined by the technical specifications of the dwelling as compared to the demographic characteristics of the residents our analysis is based on a sample of more than 300 000 dutch homes and their occupants the results indicate that residential gas consumption is determined principally by structural dwelling characteristics such as the vintage building type and characteristics of the dwelling while electricity consumption varies more directly with household composition in particular income and family composition combining these results with projections on future economic and demographic trends we find that even absent price increases for residential energy the aging of the population and their increasing wealth will roughly offset improvements in the energy efficiency of the building stock resulting from policy interventions and natural revitalization

some economics of global warming the greenhouse effect itself is simple enough to understand and is not in any real dispute what is in dispute is its magnitude over the coming century its translation into changes in climates around the globe and the impacts of those climate changes on human welfare and the natural environment these are beyond the professional understanding of any single person the sciences involved are too numerous and diverse demography economics biology and the technology sciences are needed to project emissions atmospheric chemistry oceanography biology and meteorology are needed to translate emissions into climates biology agronomy health sciences economics sociology and glaciology are needed to identify and assess impacts on human societies and natural ecosystems and those are not all there are expert judgments on large pieces of the subject but no single person clothed in this panoply of disciplines has shown up or is likely to this article makes an attempt to forecast the economic and social consequences of global warming due to anthropogenic greenhouse gases and attempting to prevent it

greenwash vs brownwash exaggeration and undue modesty in corporate sustainability disclosure corporate greenwashing has accelerated in recent years bringing in its wake growing skepticism about corporate green claims although a theory of the drivers and deterrents of greenwashing has begun to emerge it is static in nature and does not incorporate the full range of ways in which firms can misrepresent their environmental performance our contribution is threefold first we extend the theory of organizational information disclosure to incorporate the possibility of undue modesty about a firm s environmental social and governance practices second we hypothesize about the drivers of exaggeration and undue modesty based on which of a firm s stakeholders are salient at a given point in time to do so we place the firm within a dynamic context that has largely been missing in the prior literature third we test our hypotheses using a data set that allows us to directly compare corporate green claims against actual performance results reveal that corporate output growth deregulation and low profits under deregulation significantly affect the choice between greenwashing and brownwashing the effects of growth and profits are mitigated by external scrutiny

the nascent market for green real estate in beijing abstract in recent years formal certification programs for rating and evaluating the sustainability and energy efficiency of buildings have proliferated around the world developers recognize that such green labels differentiate products and allow them to charge a price premium china has not formally adopted such rating standards in the absence of such standards developers are competing with each other based on their own self reported indicators of their buildings greenness we create an index using google search to rank housing complexes in beijing with respect to their marketing greenness and document that these green units sell for a price premium at the presale stage but they subsequently resell or rent for a price discount an introduction of a standardized official certification program would help green demanders to acquire units that they desire and would accelerate the advance of china s nascent green real estate market

is energy efficiency capitalized into home prices evidence from three u s cities abstract we test for evidence that energy efficiency features are capitalized into home prices in three u s metropolitan areas using hedonic regressions and multiple matching procedures we find that energy star certification is associated with higher sales prices in two of the markets the research triangle region of north carolina and portland oregon we find that local green certifications in portland and in austin texas are also associated with higher prices and that the estimated price impacts are larger than those from energy star matching on observables proves to be important in some cases reducing the estimated impacts compared with models without matching we calculate the implied energy savings from the estimated premiums and find that in the research triangle market the energy star premiums approximately equal the savings that program is designed to achieve but in portland the premiums are slightly greater than the program s savings due to low energy costs in the region

diverging patterns with endogenous labor migration abstract the standard neoclassical model cannot explain persistent migration flows and lack of cross country convergence when capital and labor are mobile here we present a model where both phenomena may take place assuming increasing returns and perfect capital mobility the driving forces behind labor migration are the size and the composition of the workforce the size of the workforce produces divergence a larger workforce in one country implies higher wages the wage gap induces in migration and this makes the wage gap even larger in this case migration is only beneficial for the labor importing country the evolution in the composition of the workforce due to migration may have opposite effects in one case in migration keeps the wage of skilled workers high enough to induce people to qualify for skilled jobs this improves the composition of labor in the receiving country only and it makes divergence a likely outcome in another case labor migration keeps the relative wage of unskilled workers in the rich country high enough to induce all migrants to take unskilled jobs and reduce the skilled to unskilled ratio in that country then migration is beneficial to the country which was first exporting labor

the economics of corporate social responsibility a firm level perspective survey this paper analyzes the economics of corporate social responsibility csr as a private response to market imperfections in order to satisfy social preferences depending on whether they affect regulation competition or contracts market imperfections driving csr decisions are classified in three categories public goods and bads and altruism imperfect competition and incomplete contracts we successively present these drivers of csr decisions and highlight the nature of incentives external or internal at work and the testable and tested hypotheses in the reviewed studies we finally review the link between csr and financial performance as well as between csr and social and environmental performance a twofold discrepancy appears in the literature opening future research paths a disconnection between our understanding of csr drivers and csr impacts and a knowledge gap between csr financial and social consequences the latter having received little attention

doing well by doing good green office buildings this paper provides the first credible evidence on the economic value of the certification of green buildings in the commercial sector value derived from impersonal market transactions rather than engineering estimates we match publicly available information on the addresses of energy star and leed rated office buildings to a commercial data source detailing the characteristics of u s office buildings and their rental rates we analyze the micro data on 694 certified green buildings and on 7489 other office buildings located within a quarter mile of the certified buildings we find systematic evidence that rents for green offices are about two percent higher than rents for comparable buildings located nearby effective rents i e rents adjusted for the occupancy levels in office buildings are about six percent higher in green buildings than in comparable office buildings nearby at prevailing capitalization rates conversion of the average non green building to an equivalent green building would add more than 5 million in market value these results are robust to the statistical models employed

epa s voluntary 33 50 program impact on toxic releases and economic performance of firms abstract this paper examines the motivations for participation in the voluntary 33 50 program and the program s impact on the toxic releases and economic performance of firms in the u s chemical industry it demonstrates that the benefits due to public recognition and the potentially avoided costs of liabilities and compliance under mandatory environmental regulations provide strong incentives for participation after controlling for sample selection bias and the impact of other firm specific characteristics this paper shows that program participation led to a statistically significant decline in toxic releases over the period 1991 93 the program also had a statistically significant negative impact on the current return on investment of firms but its impact on the expected long run profitability of firms was positive and statistically significant

income sources effects on inequality abstract based on certain desirable properties a subset of entropy decomposition rules is proposed to assign inequality contributions to different components of income in addition a method of assessing the impact on inequality of marginal changes in income components originally applied to gini index by lerman and yitzhaki the review of economics and statistics 67 1985 151 is extended to other measures of inequality an empirical exercise based on australian income distribution data illustrates the usefulness of the proposed analytical framework

entry growth and survival in the green industry abstractentry growth and survival in the green industry regional studies economists are interested in the factors that induce firm entry lead to growth and help firms succeed in various markets such information can be helpful to policy makers but unfortunately such patterns have not been considered for green industries this paper takes advantage of a recent definition of green industries proposed by the us bureau of labor statistics bls to investigate patterns characterizing these industries within the state of texas

the production of housing services and the derived demand for residential energy most studies of residential energy usage treat energy as a final consumer good this study explicitly considers the production of housing service flows from stocks of real estate and flows of operating inputs and considers the demand for residential energy as a factor input the empirical results based upon analysis of a sample of newly constructed dwellings and their occupants are used to evaluate the effects of energy price changes on the price of housing services and on the demand for housing and real estate thus indicating the extent of residential energy conservation in response to higher prices finally the results are used to analyze federal and state tax subsidies for residential energy conservation

unobservables in consumer choice residential energy and the demand for comfort a model of consumption of residential energy in dwellings is developed distinguishing between attributes of housing that provide direct benefits to consumers and attributes that serve as inputs in the production of final goods for example the thermal comfort of dwellings empirical estimates are made of the mode based upon the annual housing survey and the results are used to calculate the effects of changes in energy prices on the consumption of housing residential energy and other goods the analysis suggests that the adjustment process within the housing market permits a great deal of substitution in response to energy price changes copyright 1989 by mit press

the price of innovation an analysis of the marginal cost of green buildings abstract energy efficiency plays an important role in reducing the carbon externality from buildings but economic analyses of more efficient green building have thus far ignored input costs this paper finds that the average marginal cost of green labeled construction projects is smaller than the value premiums documented in the literature however design fees representing just a fraction of development costs but paid largely up front are significantly higher for green construction projects these projects also take longer to complete the results provide some insight into the market barriers and market failures that may explain the relatively slow adoption of otherwise economically rational green construction practices

income inequality development and dependence a reconsideration we reconsider the role of foreign investment in income inequality in light of recent critiques that question the results of quantitative cross national research on foreign capital penetration we analyze an unbalanced cross national data set in which countries contribute different numbers of observations with a maximum of 88 countries and 488 observations dated from 1967 to 1994 random effects regression models that control for unmeasured country heterogeneity are used to investigate effects of foreign capital penetration on inequality measured as the gini coefficient against the background of an internal developmental model of inequality we adapt firebaugh s 1992 1996 critique of the literature on the effect of foreign investment on economic growth to the study of income inequality and find that the stock of foreign direct investment has an effect on inequality that is independent of the mechanisms identified by firebaugh we explore tsai s 1995 claim that the effect of foreign capital penetration is spurious and find that foreign stock has a significant positive effect on inequality net of region specific differences an alternative interpretation of the findings of the foreign investment inequality literature is discussed in light of the discovery of an inverted u shaped relationship between income inequality and foreign investment stock per capita we conclude that thinking on the relationship between income inequality and investment dependence should be revised in light of an investment development path relating the inflow and outflow of foreign capital to economic development

the coevolution of industries social movements and institutions wind power in the united states this study of the u s wind energy industry extends theory on the process of industry emergence by developing and testing a coevolutionary model of the relationship between social movement organizations smos institutions and industries building on research that suggests that smos can influence institutions and the path of emerging industries we show that the growth of an industry can also influence the diversity of social movements by motivating the participation of specialist smos these new smos in turn deploy distinct knowledge capabilities goals and strategies to produce institutional changes that are necessary for the continued growth of the industry our study offers a more complete conceptualization of the influence of social movements on industry emergence and growth and it extends understanding of how smo diversity is produced

understanding the solar home price premium electricity generation and green social status this study uses a large sample of homes in the san diego area and sacramento california area to provide some of the first capitalization estimates of the sales value of homes with solar panels relative to comparable homes without solar panels although the residential solar home market continues to grow there is little direct evidence on the market capitalization effect using both hedonics and a repeat sales index approach we find that solar panels are capitalized at roughly a 3 5 premium this premium is larger in communities with a greater share of college graduates and of registered prius hybrid vehicles

growth and imperfect competition on factor markets increasing returns and distribution abstract although seldom modeled outside the monopolistic competition framework market incompleteness and imperfect competition are central to the new growth theories we propose here a strategic model of imperfect competition with endogenous growth and endogenous market structure where we focus on labor market issues for growth to be possible we assume increasing returns at the firm level due to heterogeneity on the labor market the market structure is not degenerate then because of increasing returns short run efficiency is maximized under monopoly and free entry implies too many firms in the market however in the long run competition can generate growth through a distribution effect whereas a monopoly leads to a zero growth steady state thus there is a trade off between static and dynamic efficiency this trade off implies the existence of a growth maximizing degree of competition in our economy

book reviewinequality poverty and history jeffrey g williamson basil blackwell cambridge ma 1991 isbn 1 55786 118 8 pp vii 151 19 50

the economics of green building we analyze the economics of green building finding that recent increases in the supply of green buildings and the volatility in prop erty markets have not affected the returns to green buildings we then analyze a large cross section of office buildings demonstrating that eco nomic returns to energy efficient buildings are substantial finally we relate the economic premiums for green buildings to their relative effi ciency in energy use the attributes rated for thermal efficiency as well as sustainability contribute to premiums in rents and asset values among green buildings increased energy efficiency is fully capitalized into rents and asset values

social problems of green buildings from the humanistic needs to social acceptance abstract in the past few decades scholars have conducted research and held discussions on green building to highlight their vital significance in addressing environmental economic and social challenges it is recognized that public attitudes and views towards green building may affect its application in daily lives although studies on consumers cognition are rarely carried out the social problems related to green building such as consumers basic understanding purchase intention social and humanistic needs public attitudes and behaviors rebound effects and furthermore social acceptance are therefore studied based on three research methods including literature review questionnaire and inductive analysis through the analysis following results can be obtained i green building s sustainable design has quite important influence over consumers decision making process the general public maintains a high regard for the advantages of green building where better ventilation and lighting is a major benefit saving energy and water are the second rated and then land and construction material saving ii although the general public is not being familiar with the concept of green building the majority of participants would pay more for green buildings over the standard building when they know the environmental impacts of them iii green building should not only be limited to energy performance oriented but also be user oriented the social and humanistic needs model is thus well established based on maslow s hierarchy of needs in the life cycle of green building social and humanistic needs show a trend of dynamics which means social processes with consumer engagement and participation needs to be considered in aspects of conceptual design planning and design operation and maintenance to improve users happiness and productivity iv current user oriented solutions to green building are always based on a hypothesis that consumers are readily motivated or prefer expensive goods for reducing energy use to really reflect preference and influenced actions social acceptance should be analyzed to fully gauge interest and perspective of the people v rebound effects of post occupant building performance including energy performance human comfort indoor environmental quality greenhouse gas emission and workplace productivity can be divided into two stages at present it is necessary to establish appropriate samples methods and parameters for an unbiased and valid post occupant evaluation system in addition the social acceptance of green building framework is established based on wustenhagen et al triangular model for renewable energy innovation all the explorations to social problems of green building in this article are expected to provide a healthy social basis for the development of this green strategy

energy performance certificates informing the informed or the indifferent energy performance certificates epcs are intended to provide tenants and buyers with reliable information about the energy performance of buildings as improved energy performance may increase building sale prices and rents the epcs are supposed to generate incentives for owners to invest in energy efficiency the empirical evidence for a price premium associated with energy labels is however inconclusive and partly contradictory by utilizing data from the norwegian housing market we reproduce the positive price premium effect found in earlier studies however when we check these results by taking advantage of the fact that the introduction of a mandatory energy certification system represents a quasi natural experiment we find no evidence of a price premium on the contrary we present evidence that there is no effect of the energy label itself

is there a price premium for energy efficiency labels evidence from the introduction of a label in korea abstract this study examines the price premium from korea s energy efficiency grade label the korean government recently began energy certification of televisions providing a setting to analyze a possible price effect of the new label hedonic regression results seem to show that a price premium exists for products with the energy efficiency grade label however potential unobserved heterogeneity is a concern difference in difference and fixed effects models are used to capture the net effect of the label by controlling for time and product differences the results suggest that any price premium does not result from the energy efficiency label itself instead energy efficient products already had higher prices before the introduction of the energy efficiency label the finding turns our attention to the importance of careful design of labeling programs

price and advertising signals of product quality we present a signaling model based on ideas of phillip nelson in which both the introductory price and the level of directly uninformative advertising or other dissipative marketing expenditures are choice variables and may be used as signals for the initially unobservable quality of a newly introduced experience good repeat purchases play a crucial role in our model a second focus of the paper is on illustrating an approach to refining the set of equilibria in signalling games with multiple potential signals

neoliberalism and income distribution in latin america abstract this paper reviews the principal neoliberal policy measures instituted in latin america in the last decade and their impact on equity it first emphasizes the difficulty of separating the impact of liberalization measure from the necessary fiscal adjustments of the 1980s and their transitional vs longrun effects and then places the observed movements in distribution in global and historical context the second part places several innovations of neoliberal regimes in historical perspective and argues that their overall impact is unlikely to be regressive and that previous regimes were probably not especially progressive over the long run developments in factor markets the demand side driven by reoriented industrial growth and the increasing importance of the service sector interacting with the relative supplies of skilled and unskilled labor are likely to be of overriding importance in determining the evolution of the distribution of income

supply demand and the value of green buildings attention to sustainability and energy efficiency rating schemes in the commercial property sector has increased rapidly during the past decade in the uk commercial properties have been certified under the breeam rating scheme since 1999 offering fertile ground to investigate the economic dynamics of green certification in the commercial property market this paper documents that over the 2000 09 period the expanding supply of green buildings within a given london neighbourhood had a positive impact on average rents and prices but reduced rents and prices for environmentally certified real estate the results suggest that there is a gentrification effect from green buildings however each additional green building decreases the marginal effect of certification in the rental and transaction markets by 2 per cent and 5 per cent respectively in addition controlling for lease contract features like contract length and the rent free period modifies the impact of environmental certification on

the impact of energy labels and accessibility on office rents abstract energy consumption in the commercial property sector offers an important opportunity for conserving resources in this study we evaluate the financial implications of two elements of sustainability energy efficiency and accessibility in the market for commercial real estate an empirical analysis of some 1100 leasing transactions in the netherlands over the 2005 2010 period shows that buildings designated as inefficient with an eu energy performance certificate d or worse command rental levels that are some 6 5 percent lower as compared to energy efficient but otherwise similar buildings labeled a b or c furthermore this study shows that office buildings in multi functional areas with access to public transport and facilities achieve rental premiums over mono functional office districts for policymakers the results documented in this paper provide an indication on the effectiveness of the eu energy performance certificate as a market signal in the commercial property sector the findings documented here are also relevant for investors in european office markets as the importance of energy efficiency and locational diversification is bound to increase following stricter environmental regulation and changing tenant preferences

spatial variation in office rents within the atlanta region hedonic office rent models are estimated using data for atlanta that span the years 1990 96 controlling for typical building characteristics and lease terms we find that variables measuring locational differences in wage rates transport rates and proximity to concentrations of support services and office workers play an important role in explaining spatial variation in office rents no evidence is found in support of the hypothesis that technological advances in telecommunications have diminished the role played by face to face agglomeration economies in determining the intra metropolitan location of office firms

income inequality democracy and public sector size this study synthesizes and tests explanations of how public sector size and democracy affect income inequality the results based on unbalanced panel data for 64 developing and developed countries

carbon emissions from the commercial building sector the role of climate quality and incentives commercial buildings play a major role in determining u s greenhouse gas emissions yet surprisingly little is known about the environmental performance of different buildings at a point in time or how the same buildings perform over time by exploiting a unique panel of commercial buildings from a major electric utility we study the association between a building s electricity consumption and the physical attributes of buildings lease incentive terms indicators of human capital and climatic conditions we find that buildings that are newer and of higher quality consume more electricity contrasting evidence for the residential sector however using our panel data set we document that newer buildings are most resilient when exposed to hotter weather those buildings that have a building manager on site and whose tenants face a positive marginal cost for electricity also demonstrate a better environmental performance

the influence of green building certification schemes on real estate investor behaviour evidence from singapore based on an adaptive choice based conjoint analysis the aim of this paper is to ascertain the extent to which various characteristics of a condominium unit and in particular the building and cons

the kuznets curve and the great u turn income inequality in u s counties 1970 to 1990 the authors examine the determinants of inequality in the distribution of family income in approximately 3 100 counties of the united states in 1970 1980 and 1990 such a study provides a window on global trends in social inequality during the period which spans the tail end of the kuznets curve and the more recent upswing in income inequality results from random effects regression models that control for unmeasured heterogeneity among states reveal the continued importance of the kuznetsian pattern of declining inequality with economic development a positive effect of urbanization on inequality a declining positive impact of sector dualism an increasing positive effect of educational heterogeneity and a persistent effect of racial dualism several variables associated with the recent upswing in inequality have significant effects female labor force participation negative female headed households positive percent of the population over age 65 changes from positive to negative over the period manufacturing employment negative and unemployment ambiguous they also discuss methods of estimating the gini coefficient for income inequality at the county level and measures of sector farm nonfarm dualism racial black white dualism and educational heterogeneity

factors influencing commercial buildings to obtain green certificates abstractidentifying the key factors that influence commercial buildings decision to obtain voluntary green certificates is essential to building sustainability enhancement using commercial buildings in the state of new york multinomial logit and nested logit models demonstrate that there is a significant correlation between the characteristics of commercial buildings such as square footage lot size and years built and green certification more interestingly if a commercial building is occupied by its owner likelihood of green certification is actually smaller this finding not only confirms that ongoing energy savings are heavily discounted when deciding whether to incur the upfront cost of green certification but also suggests that the rental premium enjoyed by green buildings is likely greater in terms of present value than the expected operating cost savings another explanation could be that investor owners must operate in a competitive market for tenants while owner occupiers do not operate

producer and consumer responses to green housing labels we find green labels increase residential property values by an average of 5 this premium varies by label stringency and across market segments builders respond to the stringency of labels by strategically incorporating green features to achieve higher ratings this strategy seems reasonable as there is no market premium for green features that lead to scores between label rating cutoff values these results raise important questions as to how green label policies should be designed in order to foster the supply of green features gradations of green attributes are influential particularly for highly rated homes the most stringent labels have the greatest role at the high price end of the market jel q20 q40 r31

does energy efficiency matter to home buyers an investigation of epc ratings and transaction prices in england abstract this paper investigates whether energy performance ratings as measured by mandatory energy performance certificates epcs are reflected in the sale prices of residential properties this is the first large scale empirical study of this topic in england involving 333 095 dwellings sold at least twice in the period from 1995 to 2012 applying hedonic regression and an augmented repeat sales regression we find a positive relationship between the energy efficiency rating of a dwelling and the transaction price per square metre the price effects of superior energy performance tend to be higher for terraced dwellings and flats compared to detached and semi detached dwellings the evidence is less clear cut for rates of house price growth but remains supportive of a positive association overall the results of this study suggest that energy efficiency labels have a measurable and significant impact on house prices in england

individual firm and market dynamics of csr activities this paper investigates how firms should plan corporate social responsibility short csr this dynamic analysis starts with a firm s intertemporal optimization problem and proceeds to analyze interactions with other firms which are crucial if csr is profitable for firm a then it is most likely also profitable for competitors b and c and these simultaneous decisions affect the gain each would achieve from trying to advance its own position we find that multiple equilibria exist irrespective of whether interactions with other firms are taken into account interactions can eliminate or create additional steady states and can lead to a situation in which history is insufficient to determine the long run outcome among multiple steady states so that coordination is beneficial

the corporate social performance financial performance link strategic managers are consistently faced with the decision of how to allocate scarce corporate resources in an environment that is placing more and more pressures on them recent scholarship in strategic management suggests that many of these pressures come directly from sources associated with social issues in management rather than traditional arenas of strategic management using a greatly improved source of data on corporate social performance this paper reports the results of a rigorous study of the empirical linkages between financial and social performance corporate social performance csp is found to be positively associated with prior financial performance supporting the theory that slack resource availability and csp are positively related csp is also found to be positively associated with future financial performance supporting the theory that good management and csp are positively related 1997 by john wiley sons ltd