Title: How do office buildings take advantage of energy efficiency? A study of the relationship between operating expenses and energy certification

Authors: Nikodem Szumilo

Addresses: Department of Land Economy, University of Cambridge, 19 Silver Street, Cambridge, CB3 9EP, UK

Abstract: This research examines the relationship of operating expenses and energy certification in US offices. Data for four markets over a period from Q1 2007 to Q1 2011 is used. EnergyStar certification scores are used to determine the level of energy efficiency and a hedonic pricing method to model operating expenses. The results indicate a positive but non-linear relationship between costs and efficiency. Out of a number of considered explanations this seems to be best explained by initial technological difficulties in implementing energy efficiency, a self-selection bias influencing the data or a combination of different effects.

Keywords: energy efficiency; operating expenses; corporate sustainability; green real estate; low-energy office buildings; sustainable finance; sustainable strategies; strategy implementation; sustainable consumer behaviour; green buildings; energy certification; sustainable development; USA; United States; hedonic pricing.

DOI: 10.1504/IJETM.2015.068973

International Journal of Environmental Technology and Management, 2015 Vol.18 No.2, pp.116 - 135

Received: 06 Dec 2013
Accepted: 14 Feb 2014

Published online: 23 Apr 2015 *

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