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Willingness to Pay for Green Buildings: Empirical Evidence from Switzerland

  • Author(s)/Creator(s):
    Andreas Wiencke
  • Publisher(s)/Producter(s):
    Taylor and Francis Online

The demand for green buildings and to what extent firms will pay a premium price compared to conventional buildings is a lively debate. Policy instruments like the Swiss CO2-enactment and the Swiss Building Program encourage and incentivize investments in energy-efficient properties. Based on a corporate real estate survey, I investigate the premium percentage price firms are willing to pay for green buildings. On average, Swiss corporations are willing to pay a premium price of 3.0% for leasing, 4.75% for purchasing, and 5.0% for retrofitting. Depending on firm characteristics, the premium price ranges from 1.3% to 7.9% compared to conventional properties. Firms from the building and financial service industries, as well as public corporations and authorities signal the highest willingness to pay.

Policy Quality
Personal Finance
Corporate Finance
Public Finance