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Energy Efficiency and the Future of Real Estate pp 139–159Cite as

Palgrave Macmillan

Energy Efficiency and Green Building Markets in Japan

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Abstract

This study presents a review of the extant studies on Japanese green buildings and a new empirical analysis of the relation between office rent, green building labels, and actual energy use. We provide evidence as to what causes the positive association between green building labels and office rents. We first show that sustainability-related features of the building are effective in reducing the actual consumption of electricity and water. After controlling for the effect of these observed sustainability features, we find that green labels have separate effects on the reduction of the consumption of electricity and water. Thus, various green features required by green building labels are effective in saving energy and water usage. However, green labels do not have a direct effect on office rents once we control for the effect of electricity and water usage. Thus, tenants pay a rent premium to green buildings not for a brand associated with green building labels but for material benefits of green buildings regarding lower costs of energy and water.

The original version of this chapter was revised: For detailed information please see Erratum. The erratum to this chapter is available at

https://doi.org/10.1057/978-1-137-57446-6_11

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Author information

Authors and Affiliations

  1. The Pennsylvania State University, University Park, State College, PA, USA

    Jiro Yoshida

  2. Xymax Real Estate Institute Corporation, Chiyoda-ku, Tokyo, Japan

    Junichiro Onishi

  3. Nihon University, Chiyoda-ku, Tokyo, Japan

    Chihiro Shimizu

Authors
  1. Jiro Yoshida
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  2. Junichiro Onishi
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  3. Chihiro Shimizu
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Corresponding author

Correspondence to Jiro Yoshida .

Editor information

Editors and Affiliations

  1. Merage School of Business, University of California, Irvine, Irvine, California, USA

    N. Edward Coulson

  2. Washington and Jefferson College, Washington, Pennsylvania, USA

    Yongsheng Wang

  3. Greenfield Advisors, Cartersville, Georgia, USA

    Clifford A. Lipscomb

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Yoshida, J., Onishi, J., Shimizu, C. (2017). Energy Efficiency and Green Building Markets in Japan. In: Coulson, N., Wang, Y., Lipscomb, C. (eds) Energy Efficiency and the Future of Real Estate. Palgrave Macmillan, New York. https://doi.org/10.1057/978-1-137-57446-6_7

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  • DOI: https://doi.org/10.1057/978-1-137-57446-6_7

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  • Publisher Name: Palgrave Macmillan, New York

  • Print ISBN: 978-1-137-57445-9

  • Online ISBN: 978-1-137-57446-6

  • eBook Packages: Economics and FinanceEconomics and Finance (R0)

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