Factors Affecting the Willingness of Arab Residents in Israel to Pay for Green Buildings: Results of a Survey among Potential Homebuyers in Acre and Nazareth

Sonia Abed-Elgani (), Tamar Trop, Saher Ali and Boris A. Portnov
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Sonia Abed-Elgani: Department of Natural Resources and Environmental Management, School of Environmental Sciences, University of Haifa, 99 Aba Khoushy Ave, Haifa 3103301, Israel
Tamar Trop: Department of Natural Resources and Environmental Management, School of Environmental Sciences, University of Haifa, 99 Aba Khoushy Ave, Haifa 3103301, Israel
Saher Ali: Department of Natural Resources and Environmental Management, School of Environmental Sciences, University of Haifa, 99 Aba Khoushy Ave, Haifa 3103301, Israel
Boris A. Portnov: Department of Natural Resources and Environmental Management, School of Environmental Sciences, University of Haifa, 99 Aba Khoushy Ave, Haifa 3103301, Israel

Sustainability, 2024, vol. 16, issue 2, 1-22

Abstract: Green buildings (GBs) enable the efficient use of resources while minimizing environmental impacts. Yet, GBs’ worldwide uptake is still hindered by various barriers, including the perception of being significantly more expensive than conventional ones. In Israel, several studies have investigated the willingness of prospective homebuyers to pay price premium (PP) for GBs and the associated affecting factors. However, these studies focused solely on the Jewish population and no similar study was carried out in the Arab sector. The present study attempts to bridge this knowledge gap by conducting a face-to-face survey among 215 potential Arab homebuyers in two cities in Israel characterized by a high percentage of Arab residents. Study results were compared to those found in a previous study in the Israeli Jewish sector. Findings indicate that despite their lower familiarity with the GB concept and attributes, prospective Arab homebuyers are willing to pay a much higher PP (10.56% compared to 6.58%) for purchasing a green apartment. This unexpected finding may be attributed to the higher motivation that Israeli Arabs have to improve their housing conditions and social status, which can be related to their larger households, higher household crowding, and stronger perception of housing as a long-term investment.

Keywords: green building; willingness to pay; price premium; Arab sector (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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