WILLINGNESS TO PAY FOR GREEN BUILDINGS IN GHANA: WHAT ARE THE INFLUENCING FACTORS?

Yelly Kwesy Lawluvy, Olivia Kwakyewaa Ntim and Albert Agbeko Ahiadu

AfRES from African Real Estate Society (AfRES)

Abstract: Although green buildings have been found to be more life-cycle cost-effective than conventional buildings, the capital cost of building green remains greater than that of traditional alternatives, especially in the Ghanaian market. As such, for green buildings to gain proliferation in Ghana, adopters must be willing to bear a cost premium. This study tests Ghana's green building proliferation readiness by investigating Ghanaians' willingness to pay a green building cost premium. An online survey was administered and responded to by 1,227 participants, upon which statistical analysis, including ANOVA and correlation analyses, were conducted. 70.1% of respondents showed a willingness to pay a cost premium for green buildings, with 33.4% of respondents indicating a willingness to pay a premium of up to 5% of the cost of a conventional alternative. Further analyses revealed statistically significant differences in willingness to pay for green buildings across Education levels, Income levels, Environmental Concern levels, and Green Building Awareness levels. However, no significant differences were found between different ages and genders.

Keywords: sustainability; Willingness to pay; Ghana; Green building; Influencing Factors (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2022-01-01
New Economics Papers: this item is included in nep-agr, nep-dcm, nep-ene, nep-env and nep-sea
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Persistent link: https://EconPapers.repec.org/RePEc:afr:wpaper:2022-052

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