Abstract
‘Green’ building may involve additional construction costs, such as those required for better wall insulation or upgraded window glazing. However, the ‘green’ premium, or the increase in a property’s selling price, may not only include these extra costs but also the extra profit to the developer from ‘green’ construction (Massimo 2012). Fuerst and McAllister (2011) found that rental prices of regular commercial buildings are lower by 4.1% on average compared to those complying with LEED and Star Energy standards.
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Notes
- 1.
We did not include Yavne in the calculation of the average green premium (as no conventional buildings have built near the ‘Green Yavne’ development, which thus lacks a reference sub-sample), and we similarly refrained from including in our sample the seven certified buildings of Ashkelon, as there are no new conventional apartment buildings nearby. We also removed from our sample the one residential building (in Hod Ha’sharon) that received the ‘2 star’ level of green certification.
- 2.
Founded in 1949, the Israel Builders Association is the sole representative-organization of businesses in the residential, non-residential and infrastructure construction sector. The Association strives to promote the building and infrastructure sectors in Israel, the interests of contractors and builders, and to solve professional issues. The Israel Builders Association claims over 2000 members.
- 3.
Based on estimates of the Inter-Ministerial Committee for Reducing Greenhouse Gas Emissions.
- 4.
Per capita water consumption; the average number of persons per household (Central Bureau of Statistics 2014); water price.
- 5.
An affluent beachfront neighborhood in the western part of the city of Herzliya, Israel, in the Tel Aviv District. It has about 10,000 residents.
- 6.
The urban heat island (UHI) effect is a phenomenon whereby a built-up urban area is warmer than its rural surroundings due to the composition of the urbanized terrain and human activities occurring within it.
- 7.
Israeli Standard SI 5282 defines criteria for the rating of both residential and office buildings according to energy consumption, which is related to the construction of the structure, as well as to the ambient climate.
- 8.
An initiative promoted by MK’s Moshe Kahlon and Yoav Galant from the Kulanu party, who have staked their political reputation on increasing housing affordability.
- 9.
The Israel Land Authority (ILA) is the government agency responsible for managing this land which comprises 4,820,500 acres (19,508,000 dunams). If the land is state owned (as is 90% of Israel’s land).
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Machline, E., Pearlmutter, D., Schwartz, M., Pech, P. (2020). The Socio-Economic Impacts of ‘Green’ Building in Israel: Green Building as an Urban Branding Tool. In: Green Neighbourhoods and Eco-gentrification . SpringerBriefs in Environmental Science. Springer, Cham. https://doi.org/10.1007/978-3-030-38036-6_3
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