Green Premium in the Tokyo Office Rent Market

More than 10 years have passed since studies on green buildings gained attention in the academic and industrial literature. Many studies report the economic value of green buildings, mainly in the U.S. and European markets. An empirical clarification of the dynamics of green premiums has significant...

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Autores principales:	Junichiro Onishi, Yongheng Deng, Chihiro Shimizu
Formato:	article
Lenguaje:	EN
Publicado:	MDPI AG 2021
Materias:	green building green label hedonic approach propensity score matching clustering Environmental effects of industries and plants TD194-195 Renewable energy sources TJ807-830 Environmental sciences GE1-350
Acceso en línea:	https://doaj.org/article/2f3567899e824de3b855cf39eeb60fa9
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id	oai:doaj.org-article:2f3567899e824de3b855cf39eeb60fa9
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spelling	oai:doaj.org-article:2f3567899e824de3b855cf39eeb60fa92021-11-11T19:48:15ZGreen Premium in the Tokyo Office Rent Market10.3390/su1321122272071-1050https://doaj.org/article/2f3567899e824de3b855cf39eeb60fa92021-11-01T00:00:00Zhttps://www.mdpi.com/2071-1050/13/21/12227https://doaj.org/toc/2071-1050More than 10 years have passed since studies on green buildings gained attention in the academic and industrial literature. Many studies report the economic value of green buildings, mainly in the U.S. and European markets. An empirical clarification of the dynamics of green premiums has significant implications for future urban sustainability. This study constructed a dataset of Tokyo office rents from 2009 to 2019. We estimated the green office rental premium using a hedonic approach. Our results show that, on average, an office property with a green label gains a premium of approximately 6.5% on contract rents. The Tokyo office market is heterogeneous, and endogeneity is an issue when identifying the green premium. We addressed the endogeneity issue with propensity score clustering. As a result of our estimation, the premium was approximately +5.4% for medium-sized old buildings and +2.6% for large-sized new buildings.Junichiro OnishiYongheng DengChihiro ShimizuMDPI AGarticlegreen buildinggreen labelhedonic approachpropensity score matchingclusteringEnvironmental effects of industries and plantsTD194-195Renewable energy sourcesTJ807-830Environmental sciencesGE1-350ENSustainability, Vol 13, Iss 12227, p 12227 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	green building green label hedonic approach propensity score matching clustering Environmental effects of industries and plants TD194-195 Renewable energy sources TJ807-830 Environmental sciences GE1-350
spellingShingle	green building green label hedonic approach propensity score matching clustering Environmental effects of industries and plants TD194-195 Renewable energy sources TJ807-830 Environmental sciences GE1-350 Junichiro Onishi Yongheng Deng Chihiro Shimizu Green Premium in the Tokyo Office Rent Market
description	More than 10 years have passed since studies on green buildings gained attention in the academic and industrial literature. Many studies report the economic value of green buildings, mainly in the U.S. and European markets. An empirical clarification of the dynamics of green premiums has significant implications for future urban sustainability. This study constructed a dataset of Tokyo office rents from 2009 to 2019. We estimated the green office rental premium using a hedonic approach. Our results show that, on average, an office property with a green label gains a premium of approximately 6.5% on contract rents. The Tokyo office market is heterogeneous, and endogeneity is an issue when identifying the green premium. We addressed the endogeneity issue with propensity score clustering. As a result of our estimation, the premium was approximately +5.4% for medium-sized old buildings and +2.6% for large-sized new buildings.
format	article
author	Junichiro Onishi Yongheng Deng Chihiro Shimizu
author_facet	Junichiro Onishi Yongheng Deng Chihiro Shimizu
author_sort	Junichiro Onishi
title	Green Premium in the Tokyo Office Rent Market
title_short	Green Premium in the Tokyo Office Rent Market
title_full	Green Premium in the Tokyo Office Rent Market
title_fullStr	Green Premium in the Tokyo Office Rent Market
title_full_unstemmed	Green Premium in the Tokyo Office Rent Market
title_sort	green premium in the tokyo office rent market
publisher	MDPI AG
publishDate	2021
url	https://doaj.org/article/2f3567899e824de3b855cf39eeb60fa9
work_keys_str_mv	AT junichiroonishi greenpremiuminthetokyoofficerentmarket AT yonghengdeng greenpremiuminthetokyoofficerentmarket AT chihiroshimizu greenpremiuminthetokyoofficerentmarket
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Green Premium in the Tokyo Office Rent Market

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