A green winner's curse? Investor behavior in the market for eco-certified office buildings
View / Open Files
Authors
Fuerst, F
Gabrieli, T
McAllister, P
Publication Date
2017Journal Title
Economic Modelling
ISSN
0264-9993
Publisher
Elsevier BV
Volume
61
Pages
137-146
Type
Article
Metadata
Show full item recordCitation
Fuerst, F., Gabrieli, T., & McAllister, P. (2017). A green winner's curse? Investor behavior in the market for eco-certified office buildings. Economic Modelling, 61 137-146. https://doi.org/10.1016/j.econmod.2016.11.007
Abstract
© 2016 Elsevier Ltd 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.
Identifiers
External DOI: https://doi.org/10.1016/j.econmod.2016.11.007
This record's URL: https://www.repository.cam.ac.uk/handle/1810/283345
Rights
Licence:
http://www.rioxx.net/licenses/all-rights-reserved
Statistics
Total file downloads (since January 2020). For more information on metrics see the
IRUS guide.