TY - JOUR
T1 - Environmental Performance of Commercial Real Estate
T2 - New Insights into Energy Efficiency Improvements
AU - Eichholtz, Piet
AU - Holtermans, Rogier
AU - Kok, Nils
N1 - Data source: Measurabl (private company data).
PY - 2019
Y1 - 2019
N2 - This article provides new insights into the performance of commercial real estate, focusing on the environmental performance of institutional assets. The authors employ a proprietary dataset of energy consumption data that includes more than 26,000 buildings between 2009 and 2018. They document that, in their sample of commercial real estate, the median energy intensity decreased by more than 40% over the decade. Using a difference-in-difference analysis, the authors find that adoption of environmental building certification (Leadership in Energy and Environmental Design) is associated with significantly lower energy consumption and that there is substantial variation in these effects, depending on certification level and program, and label tenure. Moreover, specific interventions aimed at improving the energy efficiency of buildings considerably reduce ex post energy consumption, with effects varying based on local climatic conditions.
AB - This article provides new insights into the performance of commercial real estate, focusing on the environmental performance of institutional assets. The authors employ a proprietary dataset of energy consumption data that includes more than 26,000 buildings between 2009 and 2018. They document that, in their sample of commercial real estate, the median energy intensity decreased by more than 40% over the decade. Using a difference-in-difference analysis, the authors find that adoption of environmental building certification (Leadership in Energy and Environmental Design) is associated with significantly lower energy consumption and that there is substantial variation in these effects, depending on certification level and program, and label tenure. Moreover, specific interventions aimed at improving the energy efficiency of buildings considerably reduce ex post energy consumption, with effects varying based on local climatic conditions.
KW - ECONOMICS
KW - BEHAVIOR
U2 - 10.3905/jpm.2019.1.099
DO - 10.3905/jpm.2019.1.099
M3 - Article
SN - 0095-4918
VL - 45
SP - 113
EP - 129
JO - Journal of Portfolio Management
JF - Journal of Portfolio Management
IS - 7
ER -