Does the literature support a high willingness to pay for green label buildings? An answer with treatment of publication bias
Pierre Voyé () and
Catherine Baumont ()
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Pierre Voyé: Univ. Bourgogne Franche Comté, Laboratoire d'Ã‰conomie de Dijon
No 2017.13, Working Papers from FAERE - French Association of Environmental and Resource Economists
Increasing attention is being paid to the building sector due to its importance in the climate change debate. In recent years, a growing literature on the price premium paid by consumers to access more efficient and sustainable buildings has emerged as a common topic in hedonic model estimations. In this paper, we aim to provide a summary of this literature by conducting a meta-analysis of more than 50 studies from around the world. In this way, based on a random effects models and weighted OLS robust clustering estimations, we offer an average estimation of the price premium accepted by economic agents (in terms of sale prices) in order to enjoy energy efficient and sustainable buildings. This supports the argument that investing in building refurbishment is worthwhile and economically relevant. However, our data seem to show a major publication bias. Correcting for this bias leads us to halve the original estimation (from 8% to 4%). In addition, we analyze the sources of result dispersion by performing a meta-regression using different moderators (type of publication, sample analysis period, econometric method, etc.). We also carry out different statistical tests and use alternative selection criteria in order to check whether our estimations are robust. Finally, we make recommendations for future hedonic studies as well as for upcoming meta-analyses of the green building premium..
Keywords: labels; certification; energy efficiency; hedonic model; meta-analysis (search for similar items in EconPapers)
JEL-codes: C19 H54 Q48 Q5 R5 (search for similar items in EconPapers)
Pages: 37 pages
New Economics Papers: this item is included in nep-dcm, nep-ene and nep-env
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http://faere.fr/pub/WorkingPapers/Fizaine_Voye_Baumont_FAERE_WP2017.13.pdf First version, 2017 (application/pdf)
Journal Article: Does the Literature Support a High Willingness to Pay for Green Label Buildings? An Answer with Treatment of Publication Bias (2018)
Working Paper: Does the literature support a high willingness to pay for green label buildings? An answer with treatment of publication bias (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:fae:wpaper:2017.13
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