Measuring Awareness and Preferences of Real Estate Developers for Green Buildings over Conventional Buildings

Consumer Behaviour and Emerging Practices in Marketing, Eds. Jayesh Aagja, Ashiwini K. Awasthi and Sanjay Jain, Institute of Management, Nirma University, Himalaya Publishing House, Mumbai, 2013, pp.332-341 © Nirma University, Ahmedabad

13 Pages Posted: 30 Jan 2013

See all articles by Chitral Patel

Chitral Patel

Kadi Sarva Vishwavidyalaya

Pawan K. Chugan

Nirma University - Institute of Management

Date Written: January 9, 2013

Abstract

The demand of eco-friendly or ‘green’ products and services has experienced considerable growth rates in recent years ranging from agricultural produce, clothing, and consumer electronics to real estate. Various studies for these products have identified that there is increasing willingness of customers to pay a price premium. This trend is supported by increased level of awareness regarding the environmental impact of production and consumption patterns. Real Estate sector consumes higher level of resources, during construction and thereafter hence, contributes in carbon dioxide emissions. Green building construction primarily involves the design, construction, and operation of buildings and other facilities in ways that preserve natural resources and protect the environment for generations to come. The real estate development industry’s rapidly growing interest in green buildings in many parts of the world confirms that market forces are leading more developers to adopt sustainable building techniques. Green buildings not only produce substantial operating savings, but also contribute in creating market value, improve health of building occupants and increase productivity. However, the greatest challenge faced by developers and buyers is lack of awareness about the benefits and opportunities of green buildings. This research paper uses primary research analyses and reveals the awareness and preferences of real estate developers to adopt green building designs. It also investigates the issues and challenges they face regarding factors like premium pricing, lack of awareness, consumer interest, etc.

Keywords: Green Buildings, Carbon Credit, Eco-friendly Buildings

JEL Classification: L74, L85, M3, Q5, R3

Suggested Citation

Patel, Chitral and Chugan, Pawan Kumar, Measuring Awareness and Preferences of Real Estate Developers for Green Buildings over Conventional Buildings (January 9, 2013). Consumer Behaviour and Emerging Practices in Marketing, Eds. Jayesh Aagja, Ashiwini K. Awasthi and Sanjay Jain, Institute of Management, Nirma University, Himalaya Publishing House, Mumbai, 2013, pp.332-341 © Nirma University, Ahmedabad. Available at SSRN: https://ssrn.com/abstract=2208409

Chitral Patel

Kadi Sarva Vishwavidyalaya ( email )

Sector 15, KH-5,
Gandhinagar, 382015
India

Pawan Kumar Chugan (Contact Author)

Nirma University - Institute of Management ( email )

Sarkhej Gandhinagar Highway
Ahmedabad, Gujarat 382481
India
+912717241900 (Phone)
+912717241916 (Fax)

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