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Stated WTP and rational WTP: willingness to pay for green apartments in Sweden
KTH, School of Architecture and the Built Environment (ABE), Real Estate and Construction Management, Building and Real Estate Economics.ORCID iD: 0000-0002-8745-7390
2014 (English)In: Sustainable Cities and Society, ISSN 2210-6707, Vol. 13, 46-56 p.Article in journal (Refereed) Published
Abstract [en]

Green buildings are expected to require lower operating costs, provide better indoor environment and have a lower impact on the environment than conventional buildings. Consequently, if renting or buying green property is more beneficial, a customer may be willing to pay extra for green apartment. The aim of this paper is to study stated and rational willingness to pay for green apartments in Sweden. A database consisting of responses from 477 occupants living in green and conventional multi-family buildings was used to investigate the existence of WTP and to test the difference in opinion between respondents living in green or conventional buildings and condominiums or rental apartments.

The responses indicate that people are prepared to pay more for very low-energy buildings but not as willing to pay for a building with an environmental certificate. It was found that interest in and the perceived importance of energy and environmental factors affect the stated WTP. The results indicate that a stated willingness to pay for low-energy buildings of 5% can be considered a rational investment decision.

Place, publisher, year, edition, pages
2014. Vol. 13, 46-56 p.
Keyword [en]
residential buildings; green buildings; willingness to pay (WTP); Sweden
National Category
Other Social Sciences Other Social Sciences not elsewhere specified
Research subject
Real Estate and Construction Management
Identifiers
URN: urn:nbn:se:kth:diva-144865DOI: 10.1016/j.scs.2014.04.007Scopus ID: 2-s2.0-84904366482OAI: oai:DiVA.org:kth-144865DiVA: diva2:714903
Note

Updated from Manuscript to article. QC 20150302

Available from: 2014-04-29 Created: 2014-04-29 Last updated: 2015-03-02Bibliographically approved
In thesis
1. In the Business of Building Green: The value of low-energy residential buildings from customer and developer perspectives
Open this publication in new window or tab >>In the Business of Building Green: The value of low-energy residential buildings from customer and developer perspectives
2013 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

An overarching aim of this research was to investigate the comprehensive value of green residential buildings as seen from two perspectives: that of the developer and that of the occupant (the customer). The dissertation consists of studies presented in seven papers.  The studies conducted to investigate the developer’s perspective focused on construction cost and potential profit (papers I and VII). The customer’s perspective was examined with three approaches: the impact that energy and environment have on the decision to purchase (or rent) an apartment (paper V), willingness to pay for a green apartment (paper VI) and finally, the occupants’ satisfaction with the dwelling and indoor environment (papers II, III and IV). 

The first paper examines whether increased investment costs are profitable, taking into account the reduction in operating costs. The investment viability is approached by comparing investment in conventional and green residential building, particularly passive houses, using real construction and post-occupancy conditions. The increased investment costs in energy-efficient building were also the focus of paper VII. In this paper, the aim was to study how technologies used in energy-efficient residential building construction affect the available saleable floor area and how this impacts on the profitability of the investment. Potential losses and gains of saleable floor area in energy-efficient buildings were assessed using a modelled building and analysed with the help of the average construction cost.

Papers II and IV present results from a study of occupants’ satisfaction and indoor environmental qualities. Both papers aim at comparing and analysing responses from occupants living in green and conventional buildings. Paper III focuses on a similar subject, but investigates occupants’ satisfaction among all adults living in multi-family buildings in Sweden, providing a national context for the results presented in papers II and IV. The results indicate that occupants are generally satisfied with their dwellings, but indoor environment proved to have a statistically significant effect on overall satisfaction.

The results in paper V indicate that energy and environmental factors have a minor impact on customers’ decision to purchase or rent an apartment. However, availability of information on building energy and environmental performance may have an effect on the likelihood of the buyers’ being interested in environmental qualities and consequently an impact on their decision. The study presented in paper VI shows that customer interest in energy and environmental factors has a significant impact on stated willingness to pay for green dwellings. The paper discusses the stated willingness to pay for low-energy buildings and buildings with an environmental certificate and attempts to assess the rationale of the stated willingness to pay for low-energy dwellings given potential energy savings.

Abstract [sv]

Fokus i detta forskningsprojekt har legat på att undersöka värdet av gröna bostäder ur ett brett perspektiv, dvs både genom att studera byggherrens och de boendes (kundens) synpunkter. I avhandlingen ingår sju uppsatser. Undersökningen av byggherrens synpunkter fokuserades på kostnader och potentiella inkomster (uppsats I och VII). Kundernas åsikter undersöktes på tre olika sätt: vilken effekt energi och miljö faktorer hade på beslut att köpa eller hyra en lägenhet (uppsats V), betalningsvilja för gröna bostäder (uppsats VI) och slutligen de boendes trivsel samt nöjdhet med inomhusmiljön (uppsats II,III och IV).

Den första uppsatsen syftar till att undersöka om ökningen av investeringskostnader vid byggande av gröna byggnader kan täckas av framtida energibesparingar och minskning av driftkostnad. Investeringens lönsamhet undersöktes genom att jämföra skillnader i byggkostnader mellan konventionella och gröna bostäder med skillnader i driftskostnader givet olika antaganden om energipriser och räntekrav. Huvudfokus i uppsats VII var också byggkostnader, men denna gång undersöktes hur nya tekniska lösningar påverkar boarea och lönsamhet av energieffektiva bostäder.  Genom att konstruera en modell av ett typhus analyserades potentiella ökningar i boarea med nya lösningar och hur detta påverkade lönsamheten i olika geografiska lägen (prisnivåer).

Uppsatserna II och IV presenterar resultat från boendeundersökningar. Båda uppsatserna syftar till att undersöka boendes trivsel och nöjdhet med inomhusmiljö samt att testa skillnaden i svar från boende i gröna och konventionella bostäder.  Uppsats III fokuserar också på inomhusmiljön, men analysen gjordes på svaren som samlades in under Boverkets projekt BETSI och resultaten är därmed representativa för alla vuxna som bor i flerfamiljshus i Sverige. Uppsats III ger därmed en national kontext för uppsatserna II och IV. Resultaten visar att boende trivs i sina bostäder, men inomhusmiljön har en statistiks signifikanta effekt på allmän nöjdhet faktor..

Resultaten i uppsats V tyder på att energi- och miljöaspekter spelar mindre roll i beslutet att köpa eller hyra en lägenhet. Den synliga informationens tillgänglighet angående byggnadens energi- och miljöprestanda, påverkar kundens intresse för dessa faktorer och därmed indirekt hushållets beslut. Resultaten i uppsats VI pekar på att kunderna, som är intresserade av byggnaders energi och miljö prestanda, är villiga att betala mer för gröna bostäder. I uppsats 6 diskuteras betalningsvilja för låg-energi byggnader och för byggnader med miljöcertifikat samt utvärderas om den angivna betalningsviljan är rationell beslut när man tar hänsyn till nuvärdet av framtida energibesparingar.

Place, publisher, year, edition, pages
Stockholm: KTH Royal Institute of Technology, 2013. 28 p.
Series
Trita-FOB-PHD, 2013:1
Keyword
sustainability, green buildings, residential buildings, low-energy, energy-efficiency, construction cost, profitability, occupant satisfaction, indoor environment quality (IEQ), hållbarhet, gröna byggnader, bostäder, låg-energi, energieffektivitet, byggkostnad, lönsamhet, boende nöjdhet, inomhusmiljö
National Category
Other Civil Engineering
Identifiers
urn:nbn:se:kth:diva-131375 (URN)978-91-85783-32-8 (ISBN)
Public defence
2013-10-30, F3, Lindstedtsvägen 26, KTH, Stockholm, 13:00 (English)
Opponent
Supervisors
Note

QC 20131014

Available from: 2013-10-14 Created: 2013-10-14 Last updated: 2015-03-02Bibliographically approved

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Zalejska-Jonsson, Agnieszka

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