{"id":657,"date":"2010-02-21T23:54:25","date_gmt":"2010-02-22T04:54:25","guid":{"rendered":"https:\/\/itstheenvironmentstupid.com\/?p=657"},"modified":"2010-03-24T01:30:52","modified_gmt":"2010-03-24T05:30:52","slug":"building-green-buildings-has-an-118-roi","status":"publish","type":"post","link":"https:\/\/itstheenvironmentstupid.com\/?p=657","title":{"rendered":"Building Green Buildings Provides a 16% ROI"},"content":{"rendered":"<p><em>by Piet Eichholtz, Nils Kok and John M. Quigley, UC ENERGY INSTITUTE\u00a0 at BERKELEY, August 2009<br \/>\n<\/em><\/p>\n<p><a href=\"https:\/\/itstheenvironmentstupid.com\/wp-content\/uploads\/2010\/02\/dreamstime_2492870.jpg\"><img loading=\"lazy\" style=\"border-right-width: 0px; margin: 0px 10px 0px 0px; display: inline; border-top-width: 0px; border-bottom-width: 0px; border-left-width: 0px\" title=\"dreamstime_2492870\" src=\"https:\/\/itstheenvironmentstupid.com\/wp-content\/uploads\/2010\/02\/dreamstime_2492870_thumb.jpg\" border=\"0\" alt=\"dreamstime_2492870\" width=\"218\" height=\"145\" align=\"left\" \/><\/a> \u201c<a href=\"http:\/\/www.ucei.berkeley.edu\/PDF\/csemwp192.pdf\" target=\"_blank\">Doing Well by Doing Good? Green Office Buildings<\/a>\u201d by Piet Eichholtz, Nils Kok and John M. Quigley is a research paper produced by the <a href=\"http:\/\/www.ucei.berkeley.edu\/csem.html\" target=\"_blank\">Center for the Study of Energy Markets<\/a> at UC Energy Institute in Berkeley. This very interesting paper:<\/p>\n<p>(<em>Abstract<\/em>) This paper provides the first credible evidence on the economic value of the certification of \u201cgreen buildings\u201d \u2013 value derived from impersonal market transactions rather than engineering estimates. For some 10,000 subject and control buildings, we match publicly available information on the addresses of Energy Star and LEED-rated office buildings to the characteristics of these buildings, their rental rates and selling prices. We find that buildings with a \u201cgreen rating\u201d command rental rates that are roughly three percent higher per square foot than otherwise identical buildings \u2013 controlling for the quality and the specific location of office buildings. Ceteris paribus, premiums in effective rents are even higher \u2013 above six percent. Selling prices of green buildings are higher by about 16 percent.<\/p>\n<p>For the Energy-Star-certified buildings in this sample, we subsequently obtained detailed estimates of site and source energy usage from the U.S. Environmental Protection Agency. Our analysis establishes that variations in the premium for green office buildings are systematically related to their energy-saving characteristics. For example, calculations show that a one dollar saving in energy costs from increased thermal efficiency yields roughly 18 dollars in the increased valuation of an Energy-Star certified building. Beyond the direct effects of energy savings, further evidence suggests that the intangible effects of the label itself also play a role in determining the value of green buildings in the marketplace.<\/p>\n<p>A link to the paper can be found <a href=\"http:\/\/www.ucei.berkeley.edu\/PDF\/csemwp192.pdf\" target=\"_blank\">here<\/a>.<\/p>\n<blockquote>\n<p align=\"left\">\n<\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>This authoritative study concludes that if you build a certified LEED or Energy Star office building, every extra dollar will return you an extra 16 per cent on the sale price, and three to six per cent on your rental income than otherwise identical buildings.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_s2mail":""},"categories":[332,17],"tags":[273,272,274],"_links":{"self":[{"href":"https:\/\/itstheenvironmentstupid.com\/index.php?rest_route=\/wp\/v2\/posts\/657"}],"collection":[{"href":"https:\/\/itstheenvironmentstupid.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itstheenvironmentstupid.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itstheenvironmentstupid.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/itstheenvironmentstupid.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=657"}],"version-history":[{"count":7,"href":"https:\/\/itstheenvironmentstupid.com\/index.php?rest_route=\/wp\/v2\/posts\/657\/revisions"}],"predecessor-version":[{"id":745,"href":"https:\/\/itstheenvironmentstupid.com\/index.php?rest_route=\/wp\/v2\/posts\/657\/revisions\/745"}],"wp:attachment":[{"href":"https:\/\/itstheenvironmentstupid.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=657"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itstheenvironmentstupid.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=657"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itstheenvironmentstupid.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=657"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}