The Value of Green Labels in the California Housing Market
|Authored by||Nils Kok , Matthew E. Kahn|
|Published on||1 Jul 2012|
The Value of Green Labels in the California Housing Market is the first study to provide statistical evidence that, holding other factors constant, a green label on a single-family home in California provides a market premium compared to a comparable home without the label. The research also indicates that the price premium is influenced by local climate and environmental ideology. To reach these conclusions, researchers conducted an economic analysis of 1.6 million homes sold in California between 2007 and 2012, controlling for other variables known to influence home prices in order to isolate the added value of green home labels.
Key Finding: Green Home Labels Add 9 Percent Price Premium