Certification Matters: Is Green Talk Cheap Talk?

30 Pages Posted: 22 Sep 2014

See all articles by Shaun A. Bond

Shaun A. Bond

University of Cincinnati

Avis Devine

York University - Schulich School of Business

Multiple version iconThere are 2 versions of this paper

Date Written: August 1, 2014

Abstract

There is an active and growing literature examining the rental rate, sales price, and occupancy premiums associated with sustainable or energy efficient certified real estate. To date, the focus has rested largely on office properties and for sale single family residential properties. We examine the rental rates achieved by green multifamily properties, providing the first look at the population of LEED market-rate apartments in the United States. We find an approximate 8.9 percent rental rate premium associated with LEED apartments. Moreover, this research provides the first indication that LEED certification garners an additional premium over non-certified space that identifies as green, indicating the strength of the certification signal and contributing to the longstanding discussion on the merits of certification.

Keywords: Energy Efficiency, Sustainability, Rent Premium, Occupancy Rates, Residential

JEL Classification: R11, R52, R58

Suggested Citation

Bond, Shaun Alexander and Devine, Avis, Certification Matters: Is Green Talk Cheap Talk? (August 1, 2014). Available at SSRN: https://ssrn.com/abstract=2499222 or http://dx.doi.org/10.2139/ssrn.2499222

Shaun Alexander Bond

University of Cincinnati ( email )

College of Business Administration
Cincinnati, OH 45221-0195
United States

Avis Devine (Contact Author)

York University - Schulich School of Business ( email )

4700 Keele Street
Toronto, Ontario M3J 1P3
Canada

HOME PAGE: http://schulich.yorku.ca/faculty/avis-devine/

Register to save articles to
your library

Register

Paper statistics

Downloads
189
Abstract Views
851
rank
157,835
PlumX Metrics