Green label signals in an emerging real estate market. A case study of Sao Paulo, Brazil

Resumo

This article investigates how real estate stakeholders price information conveyed by voluntary environmental certification schemes in Sao Paulo, the largest metropolitan area of Latin America. In addition to low incidence of green buildings, the city and many local urban agglomerations in Brazil exhibit weak environmental performance due to limited capacity to enforce existing regulation. Therefore, we exploit the role of internationally accredited third-party environmental audit schemes. In addition to comparing labelled and non-labelled properties in a hedonic framework, we also examine pricing discrepancies related with the intention to certify (registration), but no achievement of actual certification in a timely manner. Our results systematically indicate that labelled office properties in Sao Paulo yield a larger green premium than their peers from developed countries. Findings also suggest that applicants who do not obtain the label upon delivery do not receive any green premiums and may be subject to discounts, depending on specification, beyond that of other non-green office buildings. These findings provide further evidence of the relevance of market diffusion and economic governance linked to the implicit pricing of environmental labels. © 2018 Elsevier Ltd

Ficha do documento

Tipo

Artigo científico

Ano

2018

Instituição

Elsevier Ltd

Fonte

Repositório da FGV

Idioma

Inglês

Acesso

Acesso restrito

DOI

10.1016/j.jclepro.2018.02.281

Identificador

oai:repositorio.fgv.br:10438/25546

Temas

Governança

Palavras-chave

BrazilEco-certificationLeedOffice marketsSao PauloSignaling effectsCommerceCostsEnvironmental designEnvironmental managementOffice buildingsDeveloped countriesEnvironmental certificationEnvironmental performanceGreen office buildingsUrban agglomerationsEnvironmental regulationsMercado imobiliário