Gabrieli, T;
Fuerst, F;
Macallister, P;
(2017)
A Green Winner's Curse? Investor Behavior in the Market for Eco-Certified Office Buildings.
Economic Modelling
, 61
pp. 137-146.
10.1016/j.econmod.2016.11.007.
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Abstract
This paper contributes to the growing literature on the economics of green buildings: by merging auction theory and hedonic regression analysis we investigate the relationship between market concentration and price premiums in the American market for eco-certified real estate assets. Auction theory is used to model price formation where eco-investors may differ in their valuation of assets. Controlling for a large number of features, the empirical results provide evidence of a significant and positive relationship between investors’ eco-certified market share and prices of eco-certified space. Contributing to the recent debate over the nature of the green premium, we find that eco-investors are creating clientele effects and that they may be subject to a green winner’s curse.
| Type: | Article |
|---|---|
| Title: | A Green Winner's Curse? Investor Behavior in the Market for Eco-Certified Office Buildings |
| Open access status: | An open access version is available from UCL Discovery |
| DOI: | 10.1016/j.econmod.2016.11.007 |
| Publisher version: | https://doi.org/10.1016/j.econmod.2016.11.007 |
| Language: | English |
| Additional information: | © 2016. This manuscript version is published under a Creative Commons Attribution Non-commercial Non-derivative 4.0 International licence (CC BY-NC-ND 4.0). This licence allows you to share, copy, distribute and transmit the work for personal and non-commercial use providing author and publisher attribution is clearly stated. Further details about CC BY licences are available at http://creativecommons.org/licenses/by/4.0. Access may be initially restricted by the publisher. |
| Keywords: | Green Building, Eco-certification premium, Real Estate auctions, Winner’s curse |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices > UCL BEAMS UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment > The Bartlett School of Planning |
| URI: | https://discovery.ucl.ac.uk/id/eprint/1529927 |
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