Working Papers, Swedish National Road & Transport Research Institute (VTI)
Willingness to pay for sustainable housing
() and Mats Wilhelmsson
Abstract: Over the last decades there has been an increasing focus
on how to build a sustainable society and in particular on how to design
policies that pushes the society into a more sustainable direction. The
present paper aims at analysing differences between house buyers when
valuing environmental characteristics associated with the house as such.
The theoretical framework used is based on the hedonic modelling, but we
are also estimating the second stage by assuming a translog utility
function. In doing that we are able to estimate the non-marginal
willingness to pay for environmental housing attributes and whether
environmental aware household have a higher willingness to pay or not. The
conclusion to be drawn from the analysis is that there is a positive
willingness to pay for environmental attributes. Hence, there may be room
for policy measures such as information campaigns. However, it seems to be
more effective concerning environmental housing attribute that do not
require large investment.
Keywords: Sustainability; housing; willingness to pay; (follow links to similar papers)
JEL-Codes: Q58; R21; (follow links to similar papers)
19 pages, July 5, 2010
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