Faculty Advisor

Ilaria Ossella-Durbal

Graduation Year

2018

Location

Room E102, Center for Natural Sciences, Illinois Wesleyan University

Start Date

21-4-2018 11:00 AM

End Date

21-4-2018 12:00 PM

Description

In the United States, residential buildings alone account for 33% of energy consumption. Rising concerns about environmental impacts due to human consumption, as well as health concerns related to pollution have caused there to be a higher demand for environmentally conscious houses. Homebuilders have responded by providing green certifications for houses, attesting to a building’s efficiency in various aspects, such as site design and energy and water consumption. Using Multiple Listing Services real estate data on zero- to five-year-old houses sold between 2010 and 2017 in the Chicagoland area, this study examines whether there is a price premium associated with green certification, and whether different types of certification garner different premiums. Based on a hedonic pricing model, ordinary least squares regression reveals that a house that qualifies for green certification has a selling price that is 9.49% higher than a comparable house without certification, which translates to a dollar amount of about $45,000 for this dataset.

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Apr 21st, 11:00 AM Apr 21st, 12:00 PM

The Value of Green Certification on Single-Family Houses in the Chicagoland Area

Room E102, Center for Natural Sciences, Illinois Wesleyan University

In the United States, residential buildings alone account for 33% of energy consumption. Rising concerns about environmental impacts due to human consumption, as well as health concerns related to pollution have caused there to be a higher demand for environmentally conscious houses. Homebuilders have responded by providing green certifications for houses, attesting to a building’s efficiency in various aspects, such as site design and energy and water consumption. Using Multiple Listing Services real estate data on zero- to five-year-old houses sold between 2010 and 2017 in the Chicagoland area, this study examines whether there is a price premium associated with green certification, and whether different types of certification garner different premiums. Based on a hedonic pricing model, ordinary least squares regression reveals that a house that qualifies for green certification has a selling price that is 9.49% higher than a comparable house without certification, which translates to a dollar amount of about $45,000 for this dataset.