The Value of Green Certification in the Singapore Housing Market

16 Pages Posted: 15 Aug 2017 Last revised: 13 Dec 2017

Date Written: December 4, 2017

Abstract

In Singapore, a real estate developer sells new apartments in the same high-rise development before and after obtaining green certification. This allows the use of within-development variation in prices over time to measure the effect of green certification on housing prices, controlling for differences across developments. I find that green certification increases prices by around 3%, suggesting that buyers value certification, possibly because it signals the presence of less-salient green features. Moreover, the effect of certification is biggest for developments that receive the lowest green rating, which likely have fewer green features and are thus less obviously green.

Keywords: Green Building, Green Labels, Sustainability, Housing Prices

JEL Classification: Q51, R11, R21

Suggested Citation

Fesselmeyer, Eric, The Value of Green Certification in the Singapore Housing Market (December 4, 2017). Economics Letters, Volume 163, 2018, Available at SSRN: https://ssrn.com/abstract=3017774 or http://dx.doi.org/10.2139/ssrn.3017774

Eric Fesselmeyer (Contact Author)

Singapore Management University ( email )

Singapore
Singapore

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