Willingness to pay for sustainable housing

Svante Mandell and Mats Wilhelmsson

No 2010:6, Working Papers from Swedish National Road & Transport Research Institute (VTI)

Abstract: Over the last decades there has been an increasing focus on how to build a sustainable society and in particular on how to design policies that pushes the society into a more sustainable direction. The present paper aims at analysing differences between house buyers when valuing environmental characteristics associated with the house as such. The theoretical framework used is based on the hedonic modelling, but we are also estimating the second stage by assuming a translog utility function. In doing that we are able to estimate the non-marginal willingness to pay for environmental housing attributes and whether environmental aware household have a higher willingness to pay or not. The conclusion to be drawn from the analysis is that there is a positive willingness to pay for environmental attributes. Hence, there may be room for policy measures such as information campaigns. However, it seems to be more effective concerning environmental housing attribute that do not require large investment.

Keywords: Sustainability; housing; willingness to pay (search for similar items in EconPapers)
JEL-codes: Q58 R21 (search for similar items in EconPapers)
Pages: 19 pages
Date: 2010-07-05
New Economics Papers: this item is included in nep-env
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Citations: View citations in EconPapers (8)

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http://www.transportportal.se/SWoPEc/WTP_sustainable_attrib_WP.pdf (application/pdf)

Related works:
Journal Article: Willingness to Pay for Sustainable Housing (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:vtiwps:2010_006

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