Yau, Y (2012) Eco-labels and willingness-to-pay: A Hong Kong study. Smart and Sustainable Built Environment, 1(3), pp. 277-290. ISSN 2046-6099
Abstract
The purpose of this paper is to investigate whether consumers in Hong Kong's private housing market are willing to pay more for new apartment units with an eco-label. Green or sustainable housing has recently become a new orthodoxy in the field of architecture. Governments commonly use legislation or subsidies to promote green housing. However, eco-friendly housing provision can become autonomous without any state intervention if the consumers are willing to pay more for housing of better environmental performance. In this light, this study explores Hong Kong resident's willingness-to-pay (WTP) for eco-labelled housing based on the findings of a face-to-face questionnaire survey. Besides, the determinants of the WTP are identified using logistic regression modelling. Less than half of the 231 respondents were willing to pay more for a new eco-labelled apartment unit. The number of “willing” respondents dropped significantly with the label grade which signified the level of environmental performance of a property. Moreover, the decision about WTP was contingent mainly on the respondents' household income and environmental attitude. The findings of this study can offer valuable insights for the house-building industry and policy makers into how to promote a more sustainable built environment in Hong Kong. Nearly all previous research on green building consumerism focussed on commercial buildings and houses. As a preliminary study, this research extends the body of knowledge by exploring the WTP for eco-labelled apartments.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | consumer behaviour; eco-label; environmental consumerism; green building; Hong Kong; sustainability; sustainable design; willingness-to-pay |
| Index terms: | built environment, income, consumer behaviour, household, building industry, sustainable housing, eco-label, determinant, modelling, logistic regression, subsidy, environmental performance, Hong Kong, green building, questionnaire, commercial building, housing, housing provision, body of knowledge, sustainable design, legislation, survey, face |
| Subjects: | psychology, economic analysis, analytical methods, knowledge management, legal systems, risk assessment, construction type, data collection methods, consumer economics, housing and residential development, demography, statistical analysis, infrastructure and transport systems, industry analysis, design practice, sustainability assessment, design process, Geography |
| Topics: | Business Strategy, Engineering Principles, Information Management, Geographical Context, Research Practice, Stakeholder Management, Risk Management, Sustainability, Construction Technology, Urban Studies, Legal Issues, Design Practice, Organizational Design |
| Descriptive scope: | 4 PCEA |
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