Certification Matters: Is Green Talk Cheap Talk?

30 Pages Posted: 22 Sep 2014

See all articles by Shaun A. Bond

Shaun A. Bond

UQ Business School

Avis Devine

York University - Schulich School of Business

Multiple version iconThere are 2 versions of this paper

Date Written: August 1, 2014


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

UQ Business School ( email )

The University of Queensland
Brisbane, QLD 4072

Avis Devine (Contact Author)

York University - Schulich School of Business ( email )

4700 Keele Street
Toronto, Ontario M3J 1P3

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

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