Value of environmental factors and willingness to pay for green apartments in Sweden

This paper examines the importance of environmental factors in the residential property market and investigates avowed willingness to pay for green apartments. The paper presents results from a quasi-experimental study and survey responses from 733 occupants of green and conventional buildings. The analysis indicates that people are prepared to pay approximately five per cent more for very low-energy buildings; however, they are not equally willing to pay for a building with an environmental certificate. The paper demonstrates that energy and environmental building performance may effect customers’ purchasing decisions and avowed willingness to pay if consumers perceive that these factors have an impact on property value.