This essay analyses the environmental value of green buildings. Green buildings not only have a higher net operating income, but also a lower risk premium. It shows how green buildings generate more revenue by reducing various expenses, and how they have a lower capitalization…
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We can get information about the environmental performance of CASBEE certified buildings by accessing their certification reports. Also, the cash flow information about some CASBEE buildings, which are owned by real estate investment trusts, is available in their respective financial reports.
An analysis to segregate conventional and green buildings was first conducted on all properties held by the Japanese Real Estate Investment Trusts (J-REITs). The data for properties were collected based on the latest financial reports as of March 2011. It was found that out of total 1822 properties held by 35 REITs, 23 are CASBEE certified buildings (Table 1). For further analysis then, the 1799 in-CASBEE certified building was considered as conventional, the 23 CASBEE certified buildings were considered as “green buildings “ for the purposes of this analysis.
To determine economic performance, one can use the capitalization rate, calculated by dividing the net operating income by the appraisal value. The capitalization rate is the rate of return on investment, which is commonly used by investors to determine profitability.
The first analysis was conducted in order to determine if there is a dissimilarity of capitalization rate between CASBEE certified buildings (green buildings) and non-certified buildings (conventional buildings). Table 2 represents basic statistical information such as sample size, mean, standard deviations, and standard error mean for both the dataset.
The test statistic of the test of the difference between two population means depends on whether or not this hypothesis is rejected. Since this output, the result shows that p-value 0.052 > significance level 0.05, this hypothesis cannot be rejected. Therefore, we can conclude that the populations have equal variances.
“Hypothesis Ho: the population means of the two groups are equal”.
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This is damaging the environment and increasing the temperature of the world. Oceans are melting and seal levels are increasing. This phenomenon is known as global warming. The dangerous consequences of such climatic change are forcing the world to come up with techniques that are environmental friendly.
The construction and realty sector too is no exception. It can be clearly be stated, on the basis of the observations, that the design and operation of the built environment, presents both – an opportunity as well as an obstacle. According to the growing literature regarding the negative impacts of greenhouse gases, acts as a stimulus for the construction industry to increase their dependability on green and environmentally friendly materials, which can help in substantially reducing the harmful emissions (Eichholtz, Kok,2009).
The biggest benefit of green buildings is that they ensure the well-being of humans. According to the U.S. EPA, three most fundamental objectives of the programs centered on green building are “to increase efficiency in the use of water, energy; to protect the health and increase the productivity of the building’s residents; and to reduce pollution and waste”.
Further small cities which lack technical expertise have trouble in developing their own green building ordinances. Therefore, because of unavailability of manpower or technical expertise, it is prudent to all localities to follow the basic structure e.g.
The construction industry has put indiscriminate pressure on the natural resources alarm in the manner in which resources are as buildings vigorously consume them. Not only is the construction process responsible for materials wastage and capital expenditure, it is also a major contributor to environmental pollution.
The perspective taken will be with regard to economic efficiency which is the topic of discussion of this paper and concepts such as genetic information and biosystems could be examined closely with regard to changing economies and legal issues within environmental and even industrial settings.
Its purpose is to provide veteran leadership for utilization of land commensurate with healthy environment. The book set asides the popular misplaced notion that green buildings are expensive and to reinforce its arguments enlists 15 projects in different locations of the world where green buildings have turned out be beneficial and worth constructing.
The second reading account for the hardship and processes he experienced to receive payment. Precisely, it is a collection of letters written in reference to his work and compensation. Thus, it represents his ideologies much better than the first text.
1 Pages(250 words)Book Report/Review
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