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on Environmental Economics |
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Issue of 2014‒08‒02
fifty-six papers chosen by Francisco S. Ramos Universidade Federal de Pernambuco |
| By: | Don Fullerton; Daniel H. Karney |
| Abstract: | In our analytical general equilibrium model where two polluting inputs can be substitutes or complements in production, we study the effects of a tax on one pollutant in two cases: one where both pollutants face taxes and the second where the other pollutant is subject to a permit policy. In each case, we solve for closed-form solutions that highlight important parameters. We demonstrate two important ways that environmental taxes and permits are not equivalent. First, the change in the pollutant facing a tax increase depends on whether the other pollutant is subject to a tax or permit policy. Second, if that other pollutant is subject to a tax, then general equilibrium effects can increase or decrease its quantity (affecting overall welfare). However, when the second pollutant is subject to a permit policy that binds, then welfare is not affected by this spillover effect. Finally, a numerical exercise helps demonstrate these two ways that taxes and permits differ. Using the example of coal-fired power plants, our numerical exercise examines the impacts of increasing a hypothetical carbon tax on the quantity of sulfur dioxide emissions. |
| JEL: | H23 Q48 Q53 |
| Date: | 2014–07 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:20334&r=all |
| By: | Stankiewicz, Christoph Janosch; Linke, Hans Joachim; Pfnür, Andreas |
| Abstract: | By means of urban land use planning and readjustment, land management serves to control the development of settlements in cities. It also provides long-term planning foundations to meet the challenges of climate change. Not least due to these long-term decisions, land management will form the basis for investment in real estate, as real estate has to fulfil climate-relevant demands. Derived from higher-level guidelines, municipalities create individualised approaches towards climate change. These approaches interpret the principles of urban development according to specific starting positions. The article's focus is on to what extent higher-level requirements are met on the binding planning level, which impact these measures have on climate change, and how the underlying decision-making processes work.The cities of Frankfurt, Munich and Stuttgart will be analysed on the basis of their hierarchical planning system according to the most similar case design. Their formal and informal objectives of plannings and guidances will be compared to the binding values for the projects on the operational level. By means of a quantitative analysis of zone development plans, the different strategies of the cities can be revealed. The quantitative analysis also shows how the trends have changed and what guidelines have a real effect on the owners. Embedded in the Institutional Analysis framework by Elinor Ostrom, a qualitative document analysis and interviews with the municipalities uncover the processes that lead to the observed decisions and explain the motivation for the observed action.Despite having the same objectives, the cities pursue different strategies and set their priorities. Our initial studies show a discrepancy between the goals defined at higher levels and what is actually practiced. It appears that in practice, climate concerns are not given the same importance as they are given on less detailed planning levels. Climate change measures are not used as an authoritative basis for justification of projects, but instead, they merely serve as a supplement which can be used strategically to influence developments.The article outlines which measures of climate mitigation and adaptation from higher-level strategies are incorporated in actual projects and clarifies what status climate change has in local communities. In addition, decision-making processes and motivations which lead to commitment in climate change-specific land management will be revealed. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2013_208&r=all |
| By: | Wilkinson, Sara J. |
| Abstract: | Retrofit and adaptation of the existing building stock is an essential factor in man-kinds attempts to mitigate the effects of climate change and global warming. Pointedly most of the global stock was constructed with no consideration of sustainability. In Australia environmental sustainability for commercial buildings was legislated in the Building Code of Australia in 2006, with minimum standards for energy efficiency applied to new build and some retrofit projects. The City of Melbourne launched the 1200 Buildings Program in 2008 as a key strategy to deliver carbon neutrality by 2020 after Arup (2008) concluded that CBD 1200 commercial office retrofits, some two thirds of the total stock, would deliver a 38% reduction in greenhouse gas emissions. This research examined what has been undertaken in respect of the commercial retrofits undertaken as part of the 1200 Buildings Program. This study had two aims which were firstly; to gain a deeper understanding of the improvements made to existing office buildings in the 1200 Buildings Program and secondly, to undertake a comparison of current practice to identify similarities and differences in approach to retrofit within the 1200 Buildings Program. The case studies showed the sustainability measures undertaken were largely focussed on building services and energy efficiency. There was less work undertaken to address water economy measures, to the building fabric and little work, which addressed social sustainability aspects. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2013_2&r=all |
| By: | de Castro, Aliane Vieira; Neila, Javier; Pacheco, Ramirez Gema |
| Abstract: | Shopping centre is a long term investments in which Greenfield development decisions are often taken based on risks analysis regarding construction costs, location, competition, market and an “expectedâ€? DCF. Furthermore, integration among the building design, project planning, operating costs and investment analysis is not entirely considered by the investor at the decision making stage. The absence of such information tends to produce certain negative impacts on the future running costs and annual maintenance of the building, especially on the energy demand and other occupancy expenses paid by the tenants to the landlord. From the investor´s point of view, this blind spot in strategy development will possibly decrease their profit margin as changes in the occupancy expenses have a direct outcome on the profit margin. In order to try to reduce some higher operating cost components such as energy use and other utility savings as well as their CO2 emissions, quite a few income properties worldwide have some type of environmental label such as BREEAM and LEED. The drawback identified in this labelling is that usually the investments required to get an ecolabel are high and the investor finds no direct evidence that it increases Market Values. However there is research on certified commercial properties (especially offices) that shows better performance in terms of occupancy rate and rental cost (see Warren-Myers, 2012 for a detailed discussion). Additionally, Sayce (2011) says that the certification only provides a quick reference point i.e. the lack of a certificate does not indicate that a building is not sustainable or efficient.Based on the issues described above, the research compares important components of the development stages such as investments costs, concept/ strategy development as well as the current investor’s income and property value. The subjects for this analysis are a shopping centre designed with passive cooling/ bioclimatic strategies measured at the decision making stage, a certified and a non-certified standard regional shopping centre. Moreover, the proposal intends to provide decision makers with some tools for linking up green design features to the investment analysis in order to optimize the decision making process when looking into costs savings and design quality. |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2014_91&r=all |
| By: | Elliott, Colin |
| Abstract: | Corporate real estate is now established as a significant component and contributor to major organisations; whether private, public or charity. However real estate also has a vital part to play in the creation of the ‘sustainable organisation’. CSR and sustainability management requires the full acknowledgement of and input from the real estate resource in order for real long term sustainability and resilience to be deliverable.The paper will present a conceptual model of how the three entities of real estate, corporate management and CSR can work in a synchronised manner that will bring about a real estate led sustainable portfolio strategy and support informed decisionsThere is little opportunity for organisations to make integrated property portfolio decisions as much of the sustainability focus is compartmentalised into the CSR unit of the organisation. The metrics of CSR are classically energy and water use, carbon and pollution emissions. It can be challenging for the CSR process to disaggregate real estate from other contributing factors.Business activities, property and types will be mapped against resource inputs and outputs. This will involve understanding the dynamics of property use. Ultimately, energy and resource use is heavily dependent on how people and goods interact with a range of properties. Systems mapping can establish where significant ‘flows’ are likely to occur; both endogenous and exogenous to the organisation.Systems science based and will allow corporate property decisions and scenarios to be modelled for overall environmental and social impacts. Systems modelling is used extensively in sustainable development research and is a useful frame-work to evaluate impact.The modelling would identify resource inputs and outputs. Ultimately, a whole system map will be produced and allow for effective dialogue across CSR, property and corporate management delivering a more sustainable real estate strategy. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2013_266&r=all |
| By: | Mouez Fodha (University Paris 1 and Paris School of Economics. Maison des Sciences Economiques); Thomas Seegmuller (Aix-Marseille University (Aix-Marseille School of Economics), CNRS-GREQAM & EHESS); Hiroaki Yamagami (Seikei University, Tokyo) |
| Abstract: | This article analyzes the consequences of environmental tax policies when the government imposes a constraint on stabilizing public debt. A public sector of pollution abatement is financed by taxation and by issuing public debt. Considering a simple overlapping-generations model, the tax reform stimulates steady-state investment. Then, the environmental quality and the aggregate consumption increase if and only if (i) pollution abatement is large enough and (ii) there is under-accumulation of the per capita capital stock. This arises if environmental taxation allows a decrease of either income taxation or debt-output ratio. |
| Keywords: | environmental tax reform, debt, public emission abatement, double dividend |
| JEL: | Q5 H23 H63 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:aim:wpaimx:1431&r=all |
| By: | Hofmann, Marina; Linke, Hans Joachim; Müller, Nikolas; Pfnür, Andreas |
| Abstract: | The German cities Frankfurt, Munich and Stuttgart approach their climate protection initiatives in the real estate sector with different measures although their goals are nearly the same. This paper examines the underlying efficiency understanding and further limitation factors in the municipal decision-making process. The focus is on the requirements and promotion of energy efficiency and greenhouse gas reduction in real estate.As a part of a research group supported by the Deutsche Forschungsgemeinschaft (DFG) we have an interdisciplinary look at these cities and make use of the Institutional Analysis Framework by Elinor Ostrom (1990) to collect and to aggregate decision-making impacts. Therefore, qualitative as well as quantitative data analyses based on a document analysis and interviews with representatives from the municipalities and the real estate sector are used to model the exogenous constraints of a city as well as the local decision-making arena.There seems to be evidence that cities take into account different efficiency approaches to legitimate their climate protection decisions. First results show that the decision-making process is characterized by an owner-, user-, or producer-oriented real estate management perspective. This fact heavily influences the measures taken, first and foremost the financial impact on the respective stakeholder.This paper categorizes urban strategies to reduce greenhouse gas emissions in the real estate business by identifying influencing factors in the municipal decision-making process. These findings will help to make use of the enormous greenhouse gas reduction potential existing in the metropolitan real estate sector. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2013_172&r=all |
| By: | Bernet, Juerg R.; Vermeulen, Maarten |
| Abstract: | The 'Green Arbitrage Pricing Game' is a behavioral approach to the dynamics of property pricing under changing environmental regulation, social responsibility and economic expectations. Investors, asset managers, developers and occupiers of buildings find themselves in a situation, where each has a dominant strategy with the negative side effect to increase greenhouse gas emissions. But the resulting economic outcome for all is worse than using their dominated strategies to incorporate environmental externalities.A real world business case is simulating this dilemma based on the economic and social concepts of game theory. The laboratory setting in the structure of an extensive collective-action game with imperfect information is delivering experimental evidence of practical management solutions. In their roles of property investors and fund managers the players learn to understand the dynamics of the green property dilemma and to make viable strategic choices for resolving it. The game is facilitated by the strategy training toolkit 'RealInvestor' developed at the EURO Institute of Real Estate Management (www.realinvestor.net). The real world business case tackles institutional investments in the Australian office market. The simulation data is based on current input from the Green Building Council of Australia. First sets of the 'Green Arbitrage Pricing Game' were played at University of Reading, Henley Business School, School of Real Estate & Planning (United Kingdom), at Danube University Krems, Department of Building and Environment, Center of Real Estate Economics (Austria), and at Bauhaus University Weimar, Faculty of Civil Engineering (Germany). The outcome of these game sets has delivered workable strategic solutions to responsible real estate investment management. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2013_82&r=all |
| By: | Yeh, Kuang-Yih; Hsia, Hao-Ching |
| Abstract: | The dramatic growing of private vehicles ownership results in heavy traffic congestion and serious environmental pollution in the city, such as air pollution and annoying noise. Professional urban planning experts have attempted to achieve the target mentioned above by adjusting current land use. However, adjusting land use always takes a long time. At the moment, the advanced countries in Europe and the United States have been already paying attention to traffic demand management (TDM) in order to solve these environmental problems and achieve the target of building a sustainable living environment. While road pricing (RP) is generally regarded as one of the most effective measures of TDM, its poor acceptability has been the greatest impediment to its implementation. Japanese scholars proposed the parking deposit system (PDS) as an alternative RP scheme to improve the public acceptance. In view of the above, this study takes a local commercial district of Tainan City as the study area where the data of visitors driving private vehicle are collected by a stated preference questionnaire. Because the acceptances of two policies are considered to be correlated in this study, the choice behavior model of acceptance is established by using bivariate binary probit model. This study also considered that different groups may hold different attitudes, so respondents were separated into two groups according to their consciousness of fairness. Therefore, the choice behavior model of acceptance of fair group and unfair group are built and compared. The result of model estimation has several good implications for the proposal of environmental policy and traffic demand management measures. It indicates that the most important thing that people really care about is cost. That means individual’s behavior can be adjusted by charge schemes. On the other hand, the result of social interaction equilibrium shows that the difference can be obviously distinguished from different groups, so it is recognized that the approval probability of the fair group is higher than the unfair group. The marginal effects of estimated coefficients are also discussed in this study. |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2014_192&r=all |
| By: | Glynn, Peter James; Taplin, Roslyn |
| Abstract: | Climate change will have a considerable impact on the constructed environment. More specifically, policies and regulations made will impact on construction labour and have future implications for the delivery of climate adaptive property. This paper will examine the implications of climate change policy for the constructed environment labour market. It discusses whether policymakers and regulators are sufficiently informed and aware to accommodate the requirements of a low carbon workplace and whether the actors in the workplace can effectively implement the technical, regulatory and social reforms. The paper concludes that the current initiatives are individually suitable but government models are generally incomplete, lack cohesion and so do not deliver to the extent required by industry or the workplace actors. Recent studies find that there are changes occurring in the labour market as a consequence of climate change (GHK Consulting 2007; ETUC, 2007; Worldwatch Institute, 2008). They also find that skills shortages are a binding constraint on the sector, and that it will continue to be difficult to source workers in the number and with the skills required. These changes are a reflection of the industry’s moves to adapt to the new conditions, and the scaling up required to undertake the work that will reduce the energy consumed and the volume of emissions for which the constructed environment is responsible. Employers’ organisations and trade unions play an active role in the provision of sector and labour market information to policy makers, advocating the collective interests of their constituents who otherwise do not have the opportunity for input on policy and regulatory matters. They also serve as the interface between business and labour interests, and policy makers and regulators. Employers’ organisations and trade unions responsibilities include labour relations and social dialogue in respect of climate change. The paper finds these objectives overlap in some areas and therefore create the potential to infringe regulatory jurisdictions. Diligence is necessary to ensure that labour and management can remain focused on the delivery of goods and services, while also undertaking the measures necessary to adapt to the requirements of a low carbon economy. The constructed environment: is a major contributor to economic growth and employment, providing 10% of global gross domestic product and employing 5-10% of total employment. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2013_304&r=all |
| By: | Benjamin Dequiedt; Dominic Moran |
| Abstract: | This paper considers the cost of greenhouse gas mitigation potential of legume crops in French arable systems. We construct marginal abatement cost curves to represent this mitigation or abatement potential for each department of France and provide a spatial representation of its extent. Despite some uncertainty, the measure appears to offer significant low cost mitigation potential. We estimate that the measure could abate half of the emissions reduction sought by a national plan for the reduction of chemical fertilizers emissions by 2020. This would be achieved at a loss of farmlands profit of 1,2%. Considering the geographical heterogeneity of cost, we suggest that a policy implementing carbon pricing in agriculture would be more efficient than a uniform regulatory requirement for including the crop in arable systems. |
| Keywords: | Agriculture, greenhouse gas mitigation, legumes, cost-effectiveness |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:cec:wpaper:1410&r=all |
| By: | Don Fullerton; Li Gan; Miwa Hattori |
| Abstract: | Using three years of data from the 47 prefectures of Japan, we estimate behavior of households who simultaneously make discrete decisions about vehicle ownership and continuous decisions about driving distance. We use the estimated parameters to calculate elasticities and to simulate the effects of alternative pollution control policies such as taxes on gasoline, on distance, or on particular cars. Given choices about cars and distance, we also calculate emissions. Since we model simultaneous choices, both the chosen distance and the chosen car can be affected either by a tax on distance or by a tax on car characteristics. We find expected signs for coefficients on price and income. Car choices are relatively inelastic, however, either to taxes on cars or to taxes on gas or distance. Thus emissions are more affected by taxes on gasoline than by taxes on particular vehicles. Yet taxes on cars have lower costs on consumers and thus lower marginal cost of abatement. Given that the existing gas tax already achieves some abatement, mostly through driving reduction, this analysis suggests that further abatement from the use of distance-reducing taxes is more costly than achieving some marginal abatement from induced changes in car choices. The option with the lowest cost is to tax each car at a rate proportional to its emission rate. |
| JEL: | H23 Q52 |
| Date: | 2014–07 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:20333&r=all |
| By: | Anna Bartczak (Faculty of Economic Sciences, University of Warsaw; Warsaw Ecological Economics Center); Michał Krawczyk (Faculty of Economic Sciences, University of Warsaw; Warsaw Ecological Economics Center); Nick Hanley (Department of Geography and Sustainable Development, University of St Andrews); Anne Stenger (INRA, Laboratoire d'Économie Forestière) |
| Abstract: | Procurement auctions are one of several policy tools available to incentivise the provision of ecosystem services and biodiversity conservation. Successful biodiversity conservation often requires a landscape-scale approach and the spatial coordination of participation, for example in the creation of wildlife corridors. In this paper, we use a laboratory experiment to explore two features of procurement auctions in a forest landscape—the pricing mechanism (uniform vs. discriminatory) and availability of communication (chat) between potential sellers. We modify the experimental design developed by Reeson et al. (2011) by introducing uncertainty (and hence heterogeneity) in the production value of forest sites as well as an automated, endogenous stopping rule. We find that discriminatory pricing yields to greater environmental benefits per government dollar spent, chiefly due to better coordination between owners of adjacent plots. Chat also facilitates such coordination but also seems to encourage collusion in sustaining high prices for the most environmentally attractive plots. These two effects offset each other, making chat neutral from the viewpoint of maximizing environmental effect per dollar spent. |
| Keywords: | conservation auctions, spatial coordination, chat in experiments, discriminatory and uniform auctions, biodiversity conservation, provision of ecosystem services |
| JEL: | C92 D44 Q23 Q57 Q58 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:war:wpaper:2014-19&r=all |
| By: | Ian Gough |
| Abstract: | Since climate change threatens human wellbeing across the globe and into the future, we require a concept of wellbeing that encompasses an equivalent ambit. This paper argues that only a concept of human need can do the work required. It compares need theory with three alternative approaches. Preference satisfaction theory is criticised on the grounds of subjectivity, epistemic irrationality, endogenous and adaptive preferences, the limitlessness of wants, the absence of moral evaluation, and the non-specificity of future preferences. The happiness approach is found equally wanting. The main section shows how these deficiencies can be addressed by a coherent theory of need. Human needs are necessary preconditions to avoid serious harm, are universalisable, objective, empirically grounded, non-substitutable and satiable. They are broader than 'material' needs since a need for personal autonomy figures in all theoretical accounts. While needs are universal, need satisfiers are most often contextual and relative to institutions and cultures. The satiability and non-substitutability of needs is critical for understanding sustainability. The capability approaches of Sen and Nussbaum are compared but argued to be less fundamental. Finally, human needs provide the only concept that can ground moral obligations across global space and intergenerational time and thus operationalise 'sustainable welfare'. |
| Keywords: | Human needs, welfare theory, wellbeing, global justice, intergenerational justice, sustainability, preferences, capabilities |
| JEL: | B5 I00 P46 Z13 |
| Date: | 2014–07 |
| URL: | http://d.repec.org/n?u=RePEc:cep:sticas:/182&r=all |
| By: | Kovacs, Alexandra; Wiegand, Dietmar; Emrich, Stefan |
| Abstract: | The development of corporate buildings and the structure of workplaces changed dramatically during the last number of decades. Studies show that the utilization of e.g. office space lies at 5% over its lifecycle – so we need to rethink the design & the management of corporate facilities. In fact buildings which are heated, cooled and maintained but remain largely unused over time are economically & ecologically inefficient! Our built environment is identified as a crucial area for the realisation of the EU climate goals but the potential to reduce energy-demand and CO2-Emissions remain widely unused. Beside the opportunity to save a lot of (real estate and company/organisational) money through an optimized FM - the mentioned arguments above illustrate, that the improvement of space-utilization is also part of Corporate Social Responsibility. More-Space analyses saving potentials of e.g. flexible workplace management. Know-How from real estate development, facility management and mathematical modelling and simulation are brought together to improve and optimize space-utilisation. On going studies show impressive saving potentials up to 50% of the current workplaces and an optimised utilisation up to 80% within companies. Other studies within school buildings showed that up to 40% of the classrooms could be used for other purposes through improved space-management. These evaluations add up to massive saving potentials of user costs of buildings and tons of CO2-Emissions per year. The More-Space Tool is able to demonstrate each company its maximum benefit, as the model is customizable and supports rapid prototyping – a relevant characteristic for decision makers as managing directors, facility managers and others. The More-Space approach underlines that a successful achievement of the FM-potentials needs interaction between at least four competences: 1.Organisational development – necessary changes of processes and organizational structures; 2.Space Management - potentials e.g. within intelligent distribution of fixed-term rights of utilization but also within spontaneous occupancy; 3.Real Estate Planning/Development – Developers and designers must be able to create built infrastructures, which support dynamic usage of buildings and 4.Simulation – the high potentials for more efficient utilization often remain undetected until dynamic event-based computer-simulations facilitate, as the complexity of dynamic viewing of utilisation is extremely high. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2013_123&r=all |
| By: | Blumberg, George |
| Abstract: | Heat waves can be deadly and are the leading urban environmental risk [Anderson and Bell, 2009;Guha-Sapir et al., 2010]. The most serious health conditions related to extended high temperatures are heat stroke and heat exhaustion. But these ailments tell only part of the story as most of those admitted to hospital during a heat wave arrive suffering from a wide range of indirect problems [Flynn et al., 2005], such as heart attacks [Madrigano et al., 2013], asthma and organ failure brought about by dehydration.Heat extremes occasionally cause large numbers of casualties leading to mortality rates that resemble epidemics [Gover, 1938]. Consider the impending risk of heat extremes on cities, a systematic method for assessing the risk of these extremes is proposed in this paper. The management of risk comes in several forms. For example, an understanding of the epidemiology of heat related illness is essential in developing strategies to reduce vulnerability of populations to temperature extremes. Impacts can be highly variable and depend on time of year, duration and intensity of the event, as well as aspects of demography and physical geography. For example, damaging heat impact often occurs at relatively low temperature or in pockets of the city with poor ventilation or with microclimates brought on by the urban heat island effect.Additionally, experience has shown that heat related mortality and morbidity can be significantly reduced if citizens are warned and that the most vulnerable members of the population are supported [Sampson et al., 2013]. Reduction of casualties to acceptable levels of public health requires additional effort and expense [Lass et al., 2013]. This includes identifying the populations most at risk, developing an effective plan and appropriate equipment to support them and obtaining the correct trigger to instigate an intervention. Plans that have taken these factors into account show evidence of success [Kalkstein et al., 2011]. Elements of the organisation required are the focus of this paper. With a good assessment of risk, civic planning for building resilience to the risk of heat extremes can be prioritised as heat waves are expected to increase. Two major changes drive this: one climatological and the other demographic. Firstly, the intensity and duration of extreme will increase as the climate warms [Coumou and Rahmstorf, 2012; Coumou et al., 2013]. There is even the suggestion that temperature extremes are increasin |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2014_176&r=all |
| By: | Kovacic, Iva; Waltenberger, Linus |
| Abstract: | The minimal investment cost, flexibility and expandability of the built structure were the highest priority planning aims in the development and planning of industrial facilities and production halls. With the sharpening of the building codes and upcoming of European polices on climate protection and energy efficiency – such as the plus-energy buildings, the life cycle optimization is starting to gain importance with industrial investors. Optimized, highly efficient building hull and building services play crucial role in the realization of over-all energy-concept of modern industrial facility.In the case study of energy efficient industrial facility within the research project INFO (Interdisciplinary Research for Energy efficient Production) a tool for calculation of life cycle costs and emissions of the building hull was developed. For the proposed building model of industrial facility three different façade-typologies (metal sheets, metal-sandwich panels, wood panels) were simulated and calculated by the tool. In terms of ecology (CO2 emissions) the wood-based façade features the best performance, however is most costly in the initial costs, which would have been a knock-out criterion when planning an industrial facility in the past. However, the life-cycle cost related findings imply that even though the examined typologies feature large differences in the initial cost, after a period of 50 years of life-time all three façade-types sum up to the same amount of life-cycle costs. We argue that for achievement of sustainability aims therefore a long term view is necessary, as well as further development of planning tools which support decision-making process in the early design phases. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2013_234&r=all |
| By: | Botis, Andrei |
| Abstract: | The interest in green building solutions including materials, products, technology and services has improved significantly all over the world in the past years.A green building can be any project that is built or renovated with due concern for minimizing the full environmental impact of its design, construction/renovation, operations and (possible) de-construction. Key findings for green buildings:• Construction Costs• Building Value• Operational Costs• Health and Productivity• Risk Mitigation Construction CostResearch shows that building green does not necessarily need to cost more, particularly when cost strategies, program management and environmental strategies are integrated into the development process right from the start. Overall trend towards the reduction in design and construction costs associated with green building as building codes around the world become stricter, supply chains for green materials and technologies mature and the industry becomes more skilled at delivering green buildings.Building ValueEvidence from studies carried out over the past decade, primarily based on data gathered from certified office buildings in the United States and UK, has shown that green buildings tend to have higher asset values than their conventional code-compliant counterparts within a range of 9%-13%:•Higher rental/lease rates•Higher occupancy rates•Lower operating expenses•Lower yieldsIn the study of NABERS - rated buildings in Australia, it is important to note that while the higher levels of performance (NABERS 5*) tended to achieve a sales premium of up to 21%. A building in Romania has been sold to an international investment fund at 7.5% yield comparing with the prime office market , which is situated around 8.0 %. Operational CostGreen buildings have been proven to save money through reduced energy and water use and lower long-term operations and lower maintenance costs. High-performing green buildings need to be backed up by robust commissioning, effective management, leadership and communication in order to achieve their predicted performance.HealthGreen design attributes of buildings and indoor and outdoor equipments can improve worker productivity and occupant health and well being and stress reducing.Risk MitigationRisk factors can significantly affect the rental income and the future value of real estate, affecting their return on investment. Investor risk relates to the potential reduction in value. |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2014_237&r=all |
| By: | Hirsch, Jens; Braun, Thomas; Bienert, Sven |
| Abstract: | Every year natural hazards and especially hailstorms cause damages to the building stock amounting to millions or even billions of Euros in Germany. The accelerating climate change involves an increasing amount of (convective) energy within the atmosphere with adherent additional damage issues. These events lead to ascending running costs as a result of adjusted insurance costs and insurance companies are already reacting by forcing measures of adaption. Generally the actors of the housing and real estate property industry suffer by a lack of solid information on identification, analysis and assessment of climatic risks. Taking into account this additional information is of immense importance not only for their investment decisions but also for the insurance companies and regional planning authorities. Official building standards do not regard local hail hazard in their guidelines yet and real estate valuation does not take potential damages into consideration.This paper presents the first approach of a regional hail risk assessment for real estate the property market. The model uses empiric radar measurements of the German Weather Survey, which were filtered with lightning data in order to preclude false echoes. These data were analyzed with extreme value statistics to derive local hazard functions. The hazard function's output parameter (radar reflectivity) was transformed to the input parameter of available damage function, which establishes the functional relation between hazard and damage. The assessment of potential risks includes the estimation of a building's vulnerability (building-specific damage functions) in order to identify the monetary damage in terms of an annual expected loss. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2013_249&r=all |
| By: | Braun, Thomas; Cajias, Marcelo; Bienert, Sven |
| Abstract: | In terms of climate change mitigation, the response of the property sector is apparent by the diffusion of green buildings. Hence, it is necessary to analyse its diffusion pattern in order to identify the current stage of adoption. By now, the focus of the green building diffusion literature lies more on the temporal than on the spatial dimension. As one might assume a CSR and image driven demand of international institutional investors for green buildings, this paper contributes to answering the question, if certificates exclusively are a product for prime locations. |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2014_204&r=all |
| By: | Floegl, Helmut; Ipser, Christina; Geissler, Susanne; Mötzl, Hildegund; Radosch, Ulrike |
| Abstract: | The objective of the research project LEKOECOS is to quantify the environmental and economic resources consumed by a building during planning, construction and in the utilisation and operation stage. The complexity of the utilisation process over the long life span requires a calculation model with well-orchestrated normative definitions and idealisations. The presented environmental-economical model is based on the life cycle costs model LEKOS, developed by the Danube University Krems, and the environmental assessment software ECOSOFT by IBO. A new consistent model architecture was built up in order to synchronise the different characters of the environmental and economic resources of the building along its life cycle. This new architecture enabled a holistic consideration of the consumption of the environmental resources from elements as well as from services over the whole life span.Purpose of the system integration is a combined economic and ecological life cycle model for buildings, realised in an easy-to-use tool for the evaluation of life span resource consumptions at different stages of the design process. In addition specific life cycle resource consumption parameters are defined. This allows to compare the environmental and economic impact of different building types of different sizes and of different planning variants. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2013_258&r=all |
| By: | Braun, Thomas; Cajias, Marcelo; Bienert, Sven |
| Abstract: | As the real estate industry is responsible for about 40% of the economy's end energy consumption, its potential to contribute to a sustainable development is accordingly high. In terms of climate change mitigation, the response of the property sector is apparent by the diffusion of green buildings. Considering green buildings as a new product in the real estate market, it is necessary to analyze its diffusion pattern in order to conclude from aggregated data to the actors' behavior behind several stages of adoption. By now, the focus of the green building diffusion literature lies more on the temporal than on the spatial dimension. However, the popular quotation 'labeled properties = prime properties', as one might assume a CSR and image driven demand of international institutional investors, has never been analyzed in detail. The question is what leads the players of the real estate industry to adopt the green innovation in their investment decisions in terms of constructing, renting or investing in certain locations. This paper provides evidence of the factors determining the spatial diffusion of green buildings in the US market by gathering real estate and macroeconomic data. Our contribution to research literature is to identify barriers for a politically intended innovation and delivers a basis for future decisions by policy-makers and investors. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2013_232&r=all |
| By: | Ingaramo, Luisa; Sabatino, Stefania; Bodano, Francesca |
| Abstract: | The paper aims at developing a 'planning grid' to address sustainable social housing interventions. The purpose lies in acquiring integrated competences to support, develop and monitor residential proposals, from the pre-feasibility up to the on-going phase, covering multi-dimensional impacts on housing costs, investment sustainability, energetic performances as well as on the quality-of-life level induced in the neighborhood surroundings.The methodological approach is based on the analysis of 30 tools currently widespread in the international building sector to assess environmental and energetic performances. Among them an in-depth analysis extrapolated 7 main certification protocols (LEED, ITACA, CASAClima, BREEAM, LiderA', Audis, SB100) and selected 132 indicators (out of the total 448), specifically pertaining to social housing.The selected indicators, useful to measure the environmental and energetic performances beyond the minimum mandatory levels requested by the Italian building sector, have been grouped together into new classes and sub-classes. Furthermore, each sub-class has then been analysed according to the macro-categories defined by the CEN TC 350 standard in order to integrate and uniform the check-list of requirements, purposes and goals coming from the different protocols. The synthetic 'planning grid' obtained, covering the whole life-cycle of a social housing intervention, considers, at the same time, the economic, social and environmental impacts on the building and its context, housing costs, life quality and the users' awareness of the housing resources consumption.The study represents a first attempt in the Italian context to organise a grid of fundamental minimum requirements to develop sustainable social housing initiatives. The set of 7 classes of indicators is out of doubt a strategic 'planning grid' useful to guide public and private decision making in defining design and management priorities, also within the field of public announcements. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2013_148&r=all |
| By: | Robert J R Elliott; Joanne K Lindley |
| Abstract: | Green growth is increasingly being seen as a means of simultaneously meeting current and future climate change obligations and reducing unemployment. This paper uses detailed industry-level data from the Bureau of Labor Statistic's Green Goods and Services survey to examine how the provision of green goods and services has affected various aspects of the US economy. Our descriptive results reveal that those states and industries that were relatively green in 2010 became even greener in 2011. To investigate further we include green goods and services in a production function. The results show that between 2010 and 2011 industries that have increased their share of green employment have reduced their productivity although this negative correlation with productivity was only for the production of green goods and not for the supply of green services. In further analysis we investigate skill-technology complementarities in the production of green goods and services and show that industries that increased their provision of green goods and services grew more slowly, reduced their expenditure on technology inputs and increased their demand for medium educated workers, whilst simultaneously reducing their demand for low skilled workers. |
| Keywords: | Green Goods and Services; Productivity; Employment |
| JEL: | Q4 Q3 |
| Date: | 2014–07 |
| URL: | http://d.repec.org/n?u=RePEc:bir:birmec:14-09&r=all |
| By: | Siniak, Nikolai; Saltykou, Kiryl |
| Abstract: | Belarus has preserved its third position in Registering Property in the World Bank’s Doing Business 2014 report. Constant improvement of property registration procedures has allowed Belarus to achieve that. The Registering Property indicator takes into account three factors: the number of procedures required to transfer rights to property, the time spent on completing all the necessary procedures and the cost of procedures. From â€?The Earth Summit“ in Brazil 1992 sustainable development recognized by almost all societies as one of the major global goals. In a broad sense it’s incorporates economic, social and environmental concerns in decision making for development which thereby should meet the needs of the present, without compromising the ability of future generations to meet their own needs. Till nowadays sustainable development continued to be a driving force in land administration, which is about processes of determining, recording, and disseminating information about the ownership, value, and use of land, when implementing land management policies. UN-FIG Bathurst Declaration, 1999 established a strong link between land administration and sustainable development, outlines its significance in poverty reduction, social, environmental and economic development. The article provides basic innovative approaches on land administration in the Republic of Belarus, discusses main sustainability issues and challenges to resolve in a forthcoming period to meet the international trends in cadastral reform. |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2014_214&r=all |
| By: | Bienert, Sven |
| Abstract: | The importance of lowering the ecological footprint of human kind to a sustainable level is meanwhile unquestionable. The number of green products is increasing, but the product itself is not sufficient to reduce the ecological imbalance. Since life-cycle-assessments and life-cycle-cost approaches in real estate investments became common, it is known that not just the construction but the sustainable operation of a building leads to the most ecological benefit. Therefore, consumer behaviour is the key to enable and push a sustainable development. By now, the real estate industry focused mainly on the property side rather than on the user and his behaviour. Addressing this issue, the research idea of the study is to introduce experimental and behavioural economics as well as aspects of game theory within sustainable real estate in order to reveal the triggers of individual user behaviour. The paper combines subsequently three disciplines: Game theory/ experimental economics, real estate and sustainability. Theoretical and practical findings of this study should enable companies to address the 'right' issues and to develop adequate incentive schemes for their employees in order to trigger 'green behaviour' and finally limit resource use to reduce operating expenses. Furthermore, efficient strategies to increase personal involvement for climate protection are developed and detailed insights regarding user behaviour are given. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2013_240&r=all |
| By: | Copiello, Sergio; Bonifaci, Pietro |
| Abstract: | The theme of buildings' energy efficiency occupies a prominent place on the agenda. This study aims to assess the convenience of improving the energy performance of residential buildings: higher costs to be incurred during construction or renovation are offset by lower operating costs? The point of view is purely financial, externalities are not considered. The evaluation model is set on the discounted cash flow analysis, and partly based on life cycle assessment methodology. Variables are simplified by comparing the incremental costs of investment with the savings achieved on energy supply cost.The model is applied to three case studies located in the Northern Italy. The first is related to the design of a new single-family house. The second and third cases concern the renovation of two different public housing estates. For all cases several improvement alternatives are analyzed.The estimate of the investments constitutes a critical element; the literature has shown that many thermo-economic studies may underestimate them, due to the lack of consideration of hidden costs. The discount rate is estimated as the opportunity cost of capital, and thus in a range representative for an household interested in investing in energy efficiency.Most of the alternatives analyzed are not feasible: the discounted amount of savings is not enough to fairly compensate or fully reimburse the investment. Additional simulations were performed, considering several trends of the future growth in energy prices. If the energy prices grow considerably, each of the project alternatives analyzed will exhibit a higher convenience, and some of them will become feasible within the time frame considered.The results of the research can be summarized as follows: investment in upgrading the energy efficiency of residential buildings currently lacks viability, in purely financial terms. Nevertheless, it can be interpreted, as a hedge against the risk that the prices of energy supply will grow significantly in the coming years. As original contribution, this research allows to highlight a new kind of energy efficiency paradox: improving buildings performance should allow to reduce both climate-altering emissions and, in an efficient market, the prices of energy supplies, but decreasing energy prices disincentive to invest in buildings improvement. |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2014_37&r=all |
| By: | Kamelgarn, Yona |
| Abstract: | Literature on 'green value' shows that certified office buildings have higher rents than conventional buildings. However, more recent works indicate that this rental premium diminishes with the expanding supply of certified buildings. Some authors suggest that this premium for certified buildings could evolve into a depreciation of buildings with poor environmental performance. As certified buildings become the rule for new office developments, buildings with poor environmental performance would no longer meet tenants' functional requirements and would become obsolete. This paper analyses sustainability features as a new factor of obsolescence. First part proposes a theoretical model to account for sustainability in refurbishment decision-making. In particular, we assume that refurbishment cycles are planned over a building's life to counter obsolescence and physical deterioration. Second part consists in an empirical study based on the French market. It analyses which are the sustainability characteristics sought after by real estate managers beyond the brand of the environmental labels. This paper contributes to research on 'green value'Â? through a focus on obsolescence. The results could be used by investors to better evaluate sustainability in their investment decisions. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2013_236&r=all |
| By: | Frederic Gonand |
| Abstract: | Redistributing the income of a carbon tax impacts the economic activity and the intergenerational inequality, which both influence the intertemporal social welfare. Thus the way a social planner recycles a carbon tax is influenced by its degree of aversion to intergenerational inequality. This article analyses the effect of social aversion to intergenerational inequality on the social choice as concerns implementing and redistributing a carbon tax. It relies on a detailed computable general equilibrium model with overlapping generations and an energy module, with a parameterisation on empirical data. We use two types of social welfare functionals which both incorporate a variable parameter measuring the degree of aversion of the social planner to intergenerational inequality. Results suggest that the social planner recycles a carbon tax through higher public expenditures if its aversion to intergenerational inequity is relatively high. This holds even if recycling through lower income taxes increases activity. |
| Keywords: | Energy transition, intergenerational redistribution, social choice, overlapping generations, carbon tax, general equilibrium. |
| JEL: | D58 D63 E62 L7 Q28 Q43 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:cec:wpaper:1412&r=all |
| By: | Bravi, Marina; Rossi, Stefano; Talarico, Antonio |
| Abstract: | The recovery of brownfield sites has been in the past and still is today at the center of urban policies that have started, set up and, in some cases, completed the main projects of urban transformation. In this regard it should be noted that large transformation areas often require a preliminary remediation before that the urban functions are established. The recovery of these areas has, among other things, the character of public interest in relation to the environmental protection and public health goals. Basically, the investment decision, concerning the development of brownfields is affected by two critical variables: the remediation costs and the market value of the area after completion of the environmental recovery. This last is in fact a complex process, which cannot be estimated with certainty, influenced by many variables, such as, for example, the cost of the single operations, the timing, the technology and the uncertainty of achieving the remediation goals (Weber et al., 2008). In the past and in many countries, the public resources were preferred to encourage the development of urban transformation projects of contaminated lands. On the contrary, the current economic scenario requires a new insight that includes the possibility of involving the private developers from the early stages of the transformation. In this regard, given the uncertainty surrounding the remediation costs, some authors (Espinoza & Luccioni, 2007) have aimed to the definition of the optimal size of the investments, able to make feasible the land transformation from the financial and economic point of view, through the Real Options Theory (ROT). In this light, the work attempts to argue and support the application of the ROT, considering a contaminated area where the plan allows the change from industrial to residential and commercial use, but where the remediation costs are unavoidable. The numerical example, that is solved using the Black & Scholes formula, shows that, the higher is the volatility – the uncertainty – of the transformation value of the land, more the deferral option value is increasing . After a year, the landlord will proceed with the remediation, only if the market value of the land is greater than the cost of its recovery; otherwise it will not. As a result, the payoff for the landlord is obtained from the maximization of the value added and from the sales price of the land, that, in turn, will result from the transformation value. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2013_185&r=all |
| By: | Lyons, Ronan |
| Abstract: | Residential buildings account for a significant proportion of all emissions of greenhouse gases. It is the aim of EU policy to reduce emissions by up to 95% by 2050. This means that the energy efficiency of the stock of residential property will need to improve dramatically. But will such improvements be rewarded in the property market?Using a dataset of Belgian property listings from 2012, this research explores the extent to which energy efficiency is rewarded in the various sales and lettings segments of the Belgian property market. The study further investigates whether the premium to energy efficiency varies across Flanders, Wallonia and Brussels. Lastly, the detailed natured of the CPEB energy efficiency rating and large dataset allow an investigation of non-linearities in the energy efficiency premium, a heretofore unexplored aspect of the relationship between energy efficiency and accommodation costs. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2013_261&r=all |
| By: | Noël Bonneuil (Institut national d’études démographiques, and École des hautes études en sciences sociales); Raouf Boucekkine (Aix-Marseille University (Aix-Marseille School of Economics), CNRS & EHESS) |
| Abstract: | When cheap fossil energy is polluting and pollutant no longer absorbed beyond a certain concentration, there is a moment when the introduction of a cleaner renewable energy, although onerous, is optimal with respect to inter-temporal utility. The cleaner technology is adopted either instantaneously or gradually at a controlled rate. The problem of optimum under viability constraints is 6-dimensional under a continuous-discrete dynamic controlled by energy consumption and investment into production of renewable energy. Viable optima are obtained either with gradual or with instantaneous adoption. A longer time horizon increases the probability of adoption of renewable energy and the time for starting this adoption. It also increases maximal utility and the probability to cross the threshold of irreversible pollution. Exploiting a renewable energy starts sooner when adoption is gradual rather than instantaneous. The shorter the period remaining after adoption until the time horizon, the higher the investment into renewable energy. |
| Keywords: | multi-stage optimal control, threshold e?ects, irreversibility, non-renewable resources, viability |
| JEL: | Q30 Q53 C61 O33 |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:aim:wpaimx:1434&r=all |
| By: | Geissler, Susanne |
| Abstract: | Sustainability assessments of buildings are well known to result in certificates, which are mainly used for marketing purposes. This conference contribution does not tackle the marketing perspective but focuses on the sustainability assessment of buildings as a risk management tool for corporate real estate management. Buildings have a long life span, and it is important to ensure a stable performance of the property during several decades. Regarding market demand, the building location is undoubtedly a very high ranked criterion when it comes to making the decision to buy or rent a building or building unit or not. Nevertheless, building specific quality characteristics such as energy efficiency characteristics related with the building envelope and the HVAC system, characteristics related with the indoor air quality, and quality characteristics from the facility management perspective to reduce running cost have been gaining in importance, due to the following exemplary reasons: (1) Energy: Even if clients seldom demand for energy efficiency, this topic is definitely on the rise due the legal framework conditions such as the EPBD (Energy Performance of Buildings Directive) and the EED (Energy Efficiency Directive); if a building is not fit to be able to comply with the requirements to come, upgrading might be more expensive than taking energy efficiency into account from the beginning. (2) Indoor climate: Productivity depends on social aspects, but also on building related aspects such as air quality, summer and winter comfort, quality of light, and noise level; this area is more a subject of competition on the market than energy, because of the impact on people's health and productivity. (3) Materials: The type of façade and choice of materials in general has a strong influence on running costs; a wise choice results in a reduction of cleaning costs. All these aspects are finally cost-related factors, which might affect the saleability of a property. Building assessment schemes provide a full range of decision-making criteria to consider all building related aspects, which are already on the rise or might become important in the near future. However, it is the responsibility of the informed expert to decide between options. This conference contribution uses the Austrian sustainable building assessment scheme (ÖGNB – ASBC) to demonstrate the relation between building assessment criteria and risk factors. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2013_229&r=all |
| By: | Callanan, Judith |
| Abstract: | Purpose - The purpose of this paper is to determine the accuracy of Contingent Valuation when assessing the value attached to the presence of a negative environmental impact, such as High Voltage Transmission Lines (HVOTLs)Design/methodology/approach - A case study was undertaken to:i.Carry out a quantitative analysis to determine the effect of the HVOTL on property values.ii.Determine the perceptions of property owners to the presence of the HVOTLs, andiii.Determine the property owners' 'willingness to pay' to have the HVOTLs removed, Findings - The results show a negative effect of 20% to those properties that are adjacent to the HVOTLs. This effect drops to a negligible amount at 100 metres. Owners believe there is a 10% effect whether they are adjacent or up to 400m from the HVOTLs. The majority of owners opposed any contribution towards removing the HVOTLs. A better understanding is required by Property Valuers, regarding how to appropriately measure the effect of HVOTLs on property values. Research Implications - The implication of this research is that Property Valuers need to change the way they take into account the presence of HVOTLs when valuing property, with more attention being taken to proximity. Three different approaches were taken to determine impact on property values, with each providing a different result. Originality/value - Results expand on current knowledge by demonstrating a disparity between what people say the value effect is, and what the actual effect is on their property value. Property owners showed a resistance against contributing towards removing the HVOTLs, although expressed their belief that their presence created a negative effect. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2013_75&r=all |
| By: | Vlachostergiou, Vassiliki |
| Abstract: | Multiple regression analysis is widely used as a research tool for modeling several aspects of both commercial and residential property. Such statistical analysis is mainly implemented for the assessment of the effect of property characteristics on values and rental prices. The aim of this paper is to estimate, through the implementation of multiple regression analysis, the impact of different environmental and sustainability characteristics on the apartment values within the wider Athens area. The relevant available literature has been thoroughly examined in order for the environmental factors which affect residential prices to be identified. The final selection of the variables of the model was determined by restrictions and limitations imposed by the nature of the factors and the availability of the data. The sample used for the statistical analysis derived from the database of Bank of Greece, which compiles all residential property valuations carried out by the Greek credit institutions. The independent variables introduced to the model are population density, infrastructure quality, building factor,compatibility of uses and built and natural environment quality. The overall explanatory power of the selected linear regression model was substantial, with the most significant independent variable being quality of built environment. Alternative models have also been attempted, though with inferior results. A number of factors with a potentially significant explanatory power have been omitted, due to the increased complexity involved in the data collection. This fact has dictated the need for further research on potential alternatives and additions to the model, which could provide with improved results. |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2014_224&r=all |
| By: | Geiger, Peter; Cajias, Marcelo; Fuerst, Franz |
| Abstract: | Current research on sustainable property investment focuses mainly on property-level profitability of green buildings along with the development and implementation of eco-certifications. A second strand of studies investigates the company-level financial implications of corporate social responsibility agendas. This paper seeks to expand the current literature by analysing the effect of responsible investments within a multi-asset portfolio optimisation model. It also attempts to bridge the existing gap in the real estate literature between sustainability principles and investment analysis. To this aim, listed real estate companies with an active sustainability agenda are identified as the sustainable real estate asset class. Applying a number of robust optimisation techniques, we establish empirically whether diversification benefits can be achieved by investing in companies with a proven track record in sustainability. The results of the study highlight the potential contribution of listed real estate companies with high sustainability ratings to an institutional investor´s portfolio taking into account differences in investment style and risk aversion. ESG = Environmental, Social and Governance |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2013_256&r=all |
| By: | Janssen, Ingrid; Dijkman, Wouter; Heij, Tim Op; Willems, Rick; Borgers, Aloys |
| Abstract: | Dutch inner-city shopping areas face a decreasing number of visitors and declining sales volumes. Internet shopping, economic decline and an ageing population are considered to be the main causes. Improving the atmospherics of inner-city shopping areas may be a solution to improve the competitiveness relative to other recreational destinations and attract more visitors to shopping centres. The aim of this research is to empirically determine which atmospheric characteristics contribute to the shopper's appreciation of inner-city shopping areas. A list of 25 environmental characteristics formed the basis of a survey that was conducted in the historic inner-city shopping areas of two Dutch medium sized cities: Maastricht and 's-Hertogenbosch. Within each of these inner-city areas, four locations were selected; two historical and two non-historical. At each location, the 25 characteristics were firstly assessed by the researchers. Secondly, in total 918 consumers were invited to rate each characteristic. In addition, each respondent rated the overall appreciation and the sphere of the location under consideration. Furthermore, each respondent was asked to rank order the four locations of the particular inner-city considering the most favorite shop location and the most atmospheric shop location. Decision tree analysis was used to find out if and which physical characteristics of the locations cause the largest impact on the consumers' appreciations. Furthermore, multinomial logit (MNL) choice models were estimated to predict the most favorite and most atmospheric locations from the rank orderings provided by each respondent. This analysis showed which combination of observed characteristics contributed most to the respondent's first choice of favorite location and the respondent's first choice of most atmospheric location. Although the explanatory power of the models is limited, some observed characteristics appeared to significantly influence the shoppers' preferences. The results showed that the most favorite shopping area does not need to be the most atmospheric shopping area. Nonetheless, adjusting shopping areas to the atmospheric characteristics that contribute significantly to consumer's appreciation will help shopping center managers and developers to improve the competing power of their shopping areas. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2013_96&r=all |
| By: | Bartekova E. (UNU-MERIT) |
| Abstract: | The aim of this paper is to examine the supply risk of rare earths and its impact on low carbon technologies deployment. Bringing together seemingly disconnected strands of scientific literature, this multidisciplinary approach allows to provide an overarching overview of the economics of rare earths. In terms of supply risk, as opposed to the common belief, it is not Chinas dominant position per se, but its industrial policies which distort the rare earths market. On the demand side, the results of this paper disprove the widespread allegation that availability risk impedes deployment of offshore wind. Contrary to this, a potential supply shortage of rare earths would disrupt the further development of the automotive industry and its electrification. Ultimately, uncertainty about volatile prices and threat of supply shortages induce manufacturers to shift away from technologies containing rare earths, and thus render innovation in these economically nonviable. |
| Keywords: | Production, Pricing, and Market Structure; Size Distribution of Firms; Mining, Extraction, and Refining: Other Nonrenewable Resources; Innovation and Invention: Processes and Incentives; Nonrenewable Resources and Conservation: Demand and Supply; Nonrenewable Resources and Conservation: Issues in International Trade; Alternative Energy Sources; Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling; |
| JEL: | L11 L72 O31 Q31 Q37 Q42 Q53 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:unm:unumer:2014043&r=all |
| By: | Anica-Popa, Adrian; Cretu, Raluca Florentina |
| Abstract: | Green featured buildings have recently penetrated the real estate market. The pervasion of these buildings on the real estate market in Romania is a challenge for real estate assessors. Recently carried out surveys in the real estate field show that the sustainability is not a cost but an investment, due to the fact that the occupancy rate of the building can significantly increase, the management costs might tend to go lower due to innovative technologies, the capitalization and updating rates could be lower due to the fact that these green buildings can be associated with lower risk premiums; also, taxes on such properties can have a decreasing trend due to the fact that these buildings are much more friendly with the environment compared to the traditional ones, etc. The way sustainability transpires into the valuation of real estate, what are the decisions that the assessor will explain and justify in the valuation report are only a few questions that we aim to answer in the hereby survey by presenting a few relevant scenarios. |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2014_240&r=all |
| By: | Sliczna, Malgorzata G. |
| Abstract: | The policy of European Union is focused mostly on green growth, therefore there is an increasing number of regulations concerning sustainable development. The situation is the same in the matter of life cycle of buildings, where pressure is put on eco-friendly solutions. The purpose of the paper is to describe the green residential real estate market in Wroclaw's county and to characterize its main attributes.The paper closely examines put to use, 'green' residential properties. The research studies statistical and real estate data from government agencies, such as District Inspector of Building Control for Wroclaw's county and Cadastre office of Wroclaw's county. The information gathered allows marking out energy efficient residential buildings and determining their value. The research shows that 'green' residential buildings have just a small share in the real estate market of new buildings. The result of the study indicates that just a few of those buildings were sold by the end of the year 2012. Furthermore almost all of 'green' houses were constructed by their owners. An interest in energy efficiency can be the result of the increased willingness to reduce the operating costs of the property. By analyzing the information gathered, the most popular eco-friendly solutions used in buildings (such as: solar panels, heat pumps, biomass boilers) were identified. The research estimates the actual value of 'green' buildings. One of the research limitations was the quality of Energy Performance Certificates (EPC). Even if the EPC was done according to the national approach it may give misleading information about energy efficiency of the building. In the future a further research on the effectiveness and correctness of EPC is necessary. The paper is unique in the field of real estate in Poland as it concentrates on the residential real estate in regards to sustainable development. The results of the research can be useful to valuers and investors since it gives genuine data on the green residential buildings market in Wroclaw's county. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2013_86&r=all |
| By: | Natacha Raffin (Université Paris Ouest Nanterre la Défense EconomiX); Thomas Seegmuller (Aix-Marseille University (Aix-Marseille School of Economics), CNRS-GREQAM & EHESS) |
| Abstract: | This paper presents an overlapping generations model where pollution, private and public healths are all determinants of longevity. Public expenditure, financed through labour taxation, provide both public health and abatement. We study the complementarity between the three components of longevity on welfare and economic stability. At the steady state, we show that an appropriate fiscal policy may enhance welfare. However, when pollution is heavily harmful for longevity, the economy might experience aggregate instability or endogenous cycles. Nonetheless, a fiscal policy, which raises the share of public spending devoted to health, may display stabilizing virtues and rule out cycles. This allows us to recommend the design of the public policy that may comply with the dynamic and welfare objectives. |
| Keywords: | longevity, Pollution, welfare, complex dynamics |
| JEL: | J10 O40 Q56 C62 |
| Date: | 2014–07–16 |
| URL: | http://d.repec.org/n?u=RePEc:aim:wpaimx:1433&r=all |
| By: | Clive L. Spash |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwsre:sre-disc-2014_03&r=all |
| By: | Booij, Gerard |
| Abstract: | As for sustainability, the focus should not only be on new building realization but foremost on existing houses. Renovating houses is more environmentally friendly (e.g. concerning materials and energy usage) and cheaper in the end. In the Netherlands up to about 50% of the existing houses have some kind of sustainable quality like insulation, double glazing or energy reducing installations. The first step in any renovation building project should be to measure and document the quality of the houses in detail. Air quality, ventilation, moisture and condensation in the construction, thermal bridges, heat leakage, energy usage etc. should be measured by e.g. blower door tests, smoke detection tests, infrared imaging, monitoring occupants' behavior and modeling (calculations) in order to investigate each problem in relation to the others. Based upon these measurements causes and solutions of the detected problems should be considered. Solving one isolated aspect, however, will frequently result in increasing other problems. Moreover, from the beginning of the project all building partners should operate as a team in order to be able to realize integrated renovation design. Building Information Management tools are recommended to share information and knowledge during realization by the contractors. All partners should be responsible for the quality of the end result, also after delivery of the project. In renovation projects, detecting and solving current problems should precede the application of new advanced sustainable technology, although it can be done simultaneously. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2013_218&r=all |
| By: | Gomes, Sandra Vieira |
| Abstract: | The objective of this paper is to provide an empirical analysis of the influence of traffic noise has on the housing market. Traffic noise can be considered as an environmental externality from road transport system. As so, it affects the value that people are willing to pay for their houses. The value of this effect has already been studied by some authors, with Stated Preference-choice (SP-choice) methods, the hedonic pricing model, or others. The approach used in this study combines traditional methods, namely linear modelling techniques used for quantifying the effect on housing prices fluctuation, with newer methods as the spatial analysis associate d to Geographical Information Systems. There are obvious advantages to a GIS in adding spatial analytical capabilities in terms of increasing its functionality and meeting a demand for systems that do something beyond storing, retrieving and displaying large amounts of information. This study was developed for the city of Lisbon, Portugal. A geographical database was created combining information from the Census, on the housing characteristics, with renting and sales activities. This study applies spatial auto-correlation techniques to analyze the relation between traffic noise and the variation on the housing value in Lisbon, and aims to contribute to the scientific knowledge of housing market in Lisbon, with detailed and accurate information on the factors affecting its variation. |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2014_92&r=all |
| By: | Chen, Fong-Yao; Peng, I-Wei; Liang, Jen-Hsu |
| Abstract: | Purpose - Global environment has worsened since the 20th century, hence the development and research of green building has become a global concern. The literatures have found that green building will increase its property value. Green building has been developed over a period of time in Taiwan. However, the relationship between green building and property price is not significant. This study aims to test the actual 'green' premium on property price and explore the reasons why it was slowly promoted in Taiwan.Design/methodology/approach - This study is based on the Hedonic price model to estimate the price premium of green building in Taiwan by adopting a least squares regression model. Firstly, we get the variables of green building characteristics by literatures reviewing, questionnaire and interview. We then analyze the effects of 'green building'.Findings - We found that the number of green building, EEWH (Ecology, Energy Saving, Waste Reduction, Health) in Taiwan, increased slowly. Consumers recognize green is helpful to health and the earth. However, it is less price premium. The developers have less incentive to build EEWH building beside renewal project and luxury house. The 'Floor Area Ratio Incentive Policy' should be expanded to general housing. Originality/value - The achievements help to analyze the effect of green building on property value much more, and improves the green knowledge to community. It will also make the developers realize which indicator of 'green' affects property value more. As for the government, it can support the improvement on green policy, and promote more prosperous green building in Taiwan. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2013_101&r=all |
| By: | Gabe, Jeremy; Rehm, Michael |
| Abstract: | Preliminary studies on green multi-tenanted office buildings in the United States, Europe and Australia have widely reported the presence of price premiums for certified green or energy-efficient buildings. When researchers look at sales and rental premiums, it is generally concluded that both are present relative to uncertified office buildings. The scale employed in the vast majority of these studies is the building scale, not individual tenancies. Because of this, an alternative explanation for energy efficiency rental premiums is that they originate in the methodology used to calculate a single rental rate that represents the heterogeneous mix of rents within a single building. To test the robustness of rent premiums in Australia, we self-construct a dataset of lease transaction data covering all NABERS Energy-certified buildings in central Sydney directly from lease contracts. The characteristics of each transaction are placed in a hedonic regression model to explain annual base rent per square metre. We find neither significant premiums for highly rated buildings nor significant discounts for poorly rated buildings, implying that the alternative explanation of green rental premiums arising from the process of calculating a single rent for an entire building has merit. Incentives and net effective rent are also considered, to test if Sydney rents are shadow prices. We conclude that green building price premiums in Sydney are paid by owners, not tenants. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2013_189&r=all |
| By: | Vimpari, Jussi; Junnila, Seppo |
| Abstract: | It seems that there is not a clear consensus among industry professionals on how green certificates should be valued, even though, there seems to be a consensus that certified properties are potentially valued higher than non-certified properties. This study aims to find out whether the potential extra value of a green certificate could be measured with real option valuation (ROV). Data was gathered from industry professionals using a standard discounted cash flow valuation method constructed in a spreadsheet. ROV was applied in the data using Collan's pay-off method. The results show that an average real option value of 985,000 Euro (or 8.8% premium to the average property value) was found for the green certificate. The main finding is that by examining the certificate as a real option, the potential extra value of a green certificate could be added into min and max case scenarios, thus, making it not necessary to alter the normal cash-flow scenario that should be based on the comparable data available from the market which is scarcely available for certified buildings. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2013_198&r=all |
| By: | Koppels, Philip W.; van der Erve, Fleur |
| Abstract: | Over the last couple of years, there has been a growing interest in the financial performance of green buildings. Past research results indicate that green buildings are able to realise higher rents and sustain higher occupancy rates compared to other (non-green) buildings. It is argued that these findings are explained by the (supposed) additional occupier benefits of green buildings, such as lower operating costs, improved employee productivity and image benefits. However, in many studies it remains unclear which motive primary drives office users to prefer green buildings. Furthermore, the reported results -- the percentage rent increase and occupancy rates -- deviate to a large extent, while comparable methods and data sets are used.The aim of this research is two-folded. First, it strives to formulate a model of corporate real estate ecological responsiveness. What are the main motives of firms to lease or buy green buildings? Second, different hedonic model specifications and estimation techniques are compared to achieve insight in which hedonic model technique provides the most credible results regarding the price effects of green buildings. The relative large deviations, and sometimes implausible signs, in the reported results of the various hedonic price studies, might indicate that in some cases the models suffer from misspecification. Possibly resulting in an over- or underestimation of the rent price and occupancy effects related to green buildings.This research combines various research methods to achieve both research aims. First, a meta-analysis of published green hedonic office price is performed. Whereby special attention is given to the model specification and estimation methods. Second, an hedonic office price study is performed for the Randstad agglomeration -- Amsterdam, Rotterdam, Utrecht and The Hague -- that compares different plausible model specifications. Finally, the hedonic study is followed up by interviewing office tenants to derive their motivation for choosing green buildings. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2013_175&r=all |
| By: | Oyedokun, Tunbosun B.; Dunse, Neil; Jones, Colin |
| Abstract: | Commercial property markets in major cities of the world have experienced significant transformation by the global clamour for incorporation of sustainability in commercial buildings through the introduction of various local and international rating tools. The effect of this trend is the potential emergence of green office property sub-market with a seemingly competitive edge over the non-green office market. This in turn could bring implications for the demand and depreciation of non-green offices. This paper presents a framework for analysing these processes, assesses the evidence so far on these developments and sets out a research agenda. |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2014_87&r=all |
| By: | Nurick, Saul; Le Jeune, Karen; Dawber, Emma; Flowers, Ryan; Wilkinson, Jennifer |
| Abstract: | The widespread international acceptance of green buildings has led to rapid awareness of green building features and initiatives (GBFIs) in the South African property and construction industry, however among valuers it seems the awareness is still in its infancy. It is essential to be able to establish the effects of these GBFIs on the market value of commercial property.Three research methods were implemented in order to gather data; semi-structured interviews were conducted with valuers of varying degrees of experience in Cape Town, on-line surveys were completed by a sample of South African valuers, and a valuation simulation was conducted to determine the quantitative impact of GBFIs.The findings present evidence that even though South African valuers have limited knowledge of green buildings, they recognise the importance of incorporating the GBFIs in the valuation process. Energy efficiency was highlighted as the most important GBFI to take into account in South Africa, due to the volatility associated with increasing energy costs. The inclusion of GBFIs in valuations in practice was seen to be hindered by the lack of sufficient transactional data in the market. Furthermore, valuers experienced difficulty in quantifying and justifying the impact of GBFIs on the value of commercial green property. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2013_130&r=all |
| By: | van de Wetering, Jorn |
| Abstract: | Many studies have sought to establish the direct financial impacts of ecolabels on properties, however, it has also been proposed that the impacts of sustainability issues are more likely to manifest themselves through property risk adjustments over time, depending on the sustainability performance of buildings. Accelerated depreciation of buildings with inferior sustainability attributes may lead to new forms of sustainability-related obsolescence.Under the European Energy Performance of Buildings Directive (EPBD), buildings in the UK are assessed using energy labels (EPCs and DECs), thus providing the property market with signals regarding the energy performance of buildings. The Energy Act 2011 will make it unlawful for private landlords to rent out residential or business premises that do not achieve minimum energy efficiency standards and these will most likely include those that achieve EPC F and G ratings. This legislation is likely to impact on a significant number of buildings.Building on existing theories that investigate the impacts of ecolabels on property values, this study investigates sustainability-related risks that properties in the UK are exposed to. The study will provide a theoretical basis for the impacts that key sustainability drivers are likely to have on the property industry. It will then assess various types of building sustainability risks. Finally, the study will explore which types of properties will be most strongly affected by these risks.The results of this study provide further insights into the scope of sustainability risk-related challenges that properties may face in the future and how such risks can be identified and managed. |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2014_209&r=all |
| By: | Huston, Simon; Mateo-Babiano, Derlie |
| Abstract: | Purpose - We explore the growth patterns and development trends of vertical mixed use (VMU) developments in a variety of cities. VMUs are defined as structures with two or more revenue producing uses or land use activities on a single site. One view is that sustainable city development requires densification via VMU construction on brown field sites (within the existing inner city footprint). Design/methodology/approach - After a systematic review of the notion of VMU buildings, we conduct a macro- analytical review of across an, albeit limited, selection of European and Asian cities (Helsinki and Manila). In the micro-urban phase, we investigate VMUs within the main study location (Brisbane CBD). Specifically, we audit VMUs number, location and relative financial and non-financial performance. To evaluate VMU planning merits in the light of local codes and regulations, we adapt and apply Hoppenbrouwer and Louw's model.Findings - We found urban sustainability a complex notion without simplistic solutions. Certainly, VMU is not a 'silver bullet'. The mixed-use notion though has gained ground in some urban regeneration circles. Developers concurred that VMU communities now appeal to an emerging demographic who values accessibility and entertainment. However, developers articulated some concerns about escalating VMU construction cost caused by - Design, staging and funding complexity, and;- Unfavourable regulatory and development controls Research limitations/implications - Further operation research needed on VMU buildings in range of cities.Practical implications - Need for collaboration between developers and planners to facilitate elegant and inexpensive VMU design for streamlined planning.Social implications - If poorly conceptualised and regulated, VMU rollout will detract from not enhance sustainability and reduce not increase housing affordability.Originality/value - The project is the first systematic study of VMU in a growing Sunbelt metropolis. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2013_54&r=all |
| By: | Fuerst, Franz; Shimizu, Chihiro; Yoshida, Jiro |
| Abstract: | This paper aims to extend the existing evidence on the investment value of green buildings to international markets, specifically the residential real estate market in Japan. Using a unique transaction database of condominiums in the Tokyo metropolitan area and a hedonic analytical framework, we find that green buildings command a small but significant premium on both asking and transaction prices. The magnitude of this premium is found to fluctuate depending on market conditions. This finding is consistent with findings from other countries. As far as we are aware, this is also the first hedonic study of green value that incorporates detailed buyer characteristics. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2013_265&r=all |
| By: | Rountree, Tanya; Elsmore, Ian |
| Abstract: | The relationship between buildings and the people that inhabit and utilise them is complex and multifaceted. This complexity is dependent on a number of interconnected factors such as; the nature of the building, the building’s status and its use, all of which affect the perception of the building and its contribution to the local environment. The purpose of this paper is to consider what happens when a particular set of these factors combine. Hospitality and the built environment are interdependent upon one another and have been so ever since the inception of civilisation (O’Gorman 2010). The commercialisation of hospitality has been accompanied over the centuries by a combination of the development of specific buildings and the adaptation of existing buildings for hospitality purposes. This has led to the adaptation, revitalisation and rejuvenation of post-industrial buildings for commercial hospitality purposes as a key means to achieve the continued and sustainable us of the historic built environment (Mc Neill, 2008, Bell, 2005). This creation of hospitality outlets in character buildings can be seen as a ‘lightest touch’ option allowing the implementation of conservation and planning legislation, an option that also provides the possibility of income generation and employment creation with continued public access and therefore fulfils their obligation not only to preserve such buildings but also to achieve sustainable development (PCPAct, 2004). While adaption can result in operational and financial challenges (Ransley and Ingram, 2004) these can be countered by opportunities for brand management. Current UK Government advice is that developers and policy makers should see the historic built environment as an asset, with economically viable reuse being encouraged as a means of achieving sustainable development (DCLG 2012). But in order to achieve successful adaptation an understanding of the relationship between buildings, people, operations and legislation is necessary. The alternative ontological perspective offered by Actor-Network Theory (Law, 1999, Latour, 2005), bridges the traditional social-physical divide and provides a tool for allowing the relationship between hospitality and the built environment to be understood. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2013_339&r=all |
| By: | Herath, Shanaka; Choumert, Johanna; Maier, Gunther |
| Abstract: | The continuous expansion of urban areas at the expense of rural and natural areas should understandably increase the desire for green amenities among urban populations. In this context, greenbelts become an important component in the modern city landscape. We apply the hedonic price method in order to determine whether the implicit value of greenbelts is capitalized into real estate prices in the city of Vienna (Austria). We improve the traditional model using spatial econometric techniques and test different spatial models, namely the spatial lag model, the spatial error model and the spatial Durbin model. Evidence suggests strong support for the spatial Durbin model in the context of our data. We find, in particular, that distance to the greenbelt is an important factor that explains residential choices of households: while the CBD exerts a centripetal force, the greenbelt, on the contrary, exerts a centrifugal force. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2013_337&r=all |
| By: | Glumac, Brano; Kant, Gijs; Hof, Alfred van 't; Schaefer, Wim |
| Abstract: | Purpose - Dutch municipalities have an important role in the land market. They may act as an active stakeholder in land developments. At the same time, municipalities are entitled to set the land use policies. As a result, Dutch municipalities are the largest land owners present at the Dutch land market. The impact of the economic crisis badly damaged the financial situation of the municipalities due to their large land portfolio. Therefore, it is important to quantify those risks and test new land use policy solutions for the most risky cases.Design/methodology/approach – First, to indicate which municipalities have the highest financial risk, this paper applies a multi criteria analysis with publicly available financial data from each of 67 municipalities in Noord-Brabant region, the Netherlands. Second, 3 relevant cases within the most vulnerable municipalities were selected in order to derive 2 sustainable land use policy and relevant criteria to estimate their application potential. To estimate the importance of the success criteria and rate the potential policies a fuzzy Delphi method is used. Additionally, we distinguish two groups of experts, municipality (13 participants) and independent consultants (15 participants). Fuzzy Delphi technique is considered as an excellent method to gather such diverse panel data since it supports expert diversity in its procedure and calculation.Findings - This paper benchmarks the municipalities with the greatest financial risks and investigates the applicability of sustainable land use intervention policies.Originality/value – First, this paper reveals the severity of the financial situation of municipalities that took the active role in land market. In addition, this paper contributes to the larger pool of possible sustainable land use policies by identifying, structuring and rating the most relevant criteria to test the best applicable policy. For this purpose, we introduced the method that highlights the importance of rigorous procedure for the panel data collection and advances the weighting of the criteria and rating of potential new land use policies. This is of particular importance for the policy makers since the future land use influences the future marketability and cost of a development. |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2014_70&r=all |