Differential effect of knowledge on stakeholders’ willingness to pay green building price premium: Implications for cleaner production

Green buildings (GBs) are designed to reduce the environmental impact of construction while improving human comfort and health. However, green buildings are often more expensive than conventional buildings, because green building price premium tends to cover extra costs, such as import prices, inves...

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Bibliographic Details
Published in:Journal of cleaner production 2020-04, Vol.251, p.119575, Article 119575
Main Authors: Ofek, Shoshi, Portnov, Boris A.
Format: Article
Language:English
Subjects:
GBs
Green buildings
Knowledge
Price premium
Stakeholders
Willingness to add
Willingness to pay
WTA
WTP
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Summary:Green buildings (GBs) are designed to reduce the environmental impact of construction while improving human comfort and health. However, green buildings are often more expensive than conventional buildings, because green building price premium tends to cover extra costs, such as import prices, investment in research and development, and more efficient, but more expensive, construction systems. The present study aims to assess the extent to which knowledge about green building benefits affects the acceptable size of green building price premium across different groups of stakeholders. The survey was carried out in Israel in 2016 and covered 438 potential homebuyers, 50 architects, and 50 building contractors (developers). As the study revealed, consumers more familiar with green building benefits are willing to pay 9.25% of green building price premium, as opposed to 7.74% extra costs acceptable to consumers being less familiar with green building benefits (P 
ISSN:0959-6526
1879-1786
DOI:10.1016/j.jclepro.2019.119575