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From May 2024, Victoria (Australia) will mandatorily raise the minimum house energy rating standards from 6 to 7 stars. However, the latest data shows that only 5.73% of new Victorian houses were designed beyond 7-star. While previous literature indicates the issue’s link to the compliance behaviour of building practitioners in the design phase, the underlying behavioural determinants are rarely explored. This study thus preliminarily examines building practitioners’ compliance behaviour with 7-star Australian house energy ratings and beyond.

Using a widely-applied method to initially examine an under-explored phenomenon, eight expert interviews were conducted with building practitioners, a state-level industry regulator and a leading national building energy policy researcher. The study triangulated the data with government-led research reports.

The experts indicate that most building practitioners involved in mainstream volume projects do not go for 7 stars, mainly due to perceived compliance costs and reliance on standardized designs. In contrast, those who work on custom projects are more willing to go beyond 7-star mostly due to the moral norms for a low-carbon environment. The experts further agree that four behavioural determinants (attitudes towards compliance, subjective norms, perceived behavioural control and personal norms) co-shape building practitioners’ compliance behaviour. Interventions targeting these behavioural determinants are recommended for achieving 7 stars and beyond.

This study demonstrates the behavioural determinants that influence building practitioners’ compliance decisions, and offers insight regarding how far they will go to meet 7 stars. It can facilitate the transition to 7 stars by informing policymakers of customized interventions to trigger behaviour change.

The US Environmental Protection Agency’s (EPA’s) ENERGY STAR Buildings Program was established in the early 1990s as a means for building owners and managers to improve the energy performance of their facilities, while simultaneously reducing the amount of pollution emitted into the atmosphere from power plants. The programme outlines a five‐stage approach to improving the energy efficiency of existing buildings to help control rising energy costs. The five stages include lighting upgrades, building tune‐up, load reductions, air distribution system upgrades and HVAC plant upgrades. Each stage is designed to build on the success of the previous stages. Today, the EPA recognises buildings that perform in the top 25 per cent in terms of energy efficiency through the ENERGY STAR Label for Buildings. This paper describes the five‐stage ENERGY STAR Buildings strategy as well as how a building achieves the status of being ENERGY STAR labelled. Furthermore, this paper demonstrates the potential of the ENERGY STAR Buildings Program through a case study of four office buildings, owned and operated by the Ohio Building Authority. These buildings have each been upgraded, following the EPA’s five‐stage strategy, and each has received the ENERGY STAR Label for Buildings.

Green office buildings have recently taken on increased significance in institutional property portfolios in Australia and globally. The key issue from an institutional investor perspective is the assessment of whether green office buildings add value. Using an extensive portfolio of green office buildings, the purpose of this paper is to empirically assess the level of energy rating premiums in the property performance of green office buildings in Australia.

Using a portfolio of over 200 green office buildings in Australia benchmarked against a comparable portfolio of non-green office buildings, the level of energy rating premiums in the property performance of green office buildings in Australia is empirically evaluated. Hedonic regression analysis is used to account for differences between specific office buildings and to explicitly identify the “pure” green effect in identifying the level of energy rating premiums in several commercial property performance characteristics (e.g. office value, rent).

The empirical results show the added-value premium of the 5-star National Australian Built Environment Rating Scheme (NABERS) energy rating scheme and the Green Star scheme in the property performance of green office buildings in Australia, including office values and rents. Energy rating premiums for green office buildings are evident at the top energy ratings and energy rating discounts at the lower energy ratings. The added-value “top-end” premium of the 5-star vs 4-star NABERS energy rating category is clearly identified for the various property performance parameters, including office values and rents.

This paper empirically determines the presence of energy rating premiums at the top energy ratings in the performance of green office buildings, as well as energy rating discounts at the lower energy ratings. This clearly highlights the added value dimension of energy efficiency in green office buildings and the need for the major office property investors to prioritise the highest energy rating to facilitate additional property performance premiums. This will also see green office buildings become the norm as the market benchmark rather than non-green office buildings.

This paper highlights energy performance premiums for green office buildings. This fits into the context of sustainability in the property industry and the broader aspects of corporate social responsibility in the property industry.

This paper is the first published property research analysis on the detailed determination of energy rating premiums across the energy rating spectrum for green office buildings in Australia. Given the increased focus on energy efficiency and green office buildings, this research enables empirically validated and practical property investment decisions by office property investors regarding the importance of energy efficiency and green office buildings, and the priority to achieve the highest energy rating to maximise property performance premiums in office values and rents.

This paper aims to primarily analyzing the state and pattern of current energy benchmarking progress on commercial buildings since the New York City’s energy disclosure law, Local Law 84: Benchmarking has been implemented. It then compares the yearly benchmarking progress of Leadership in Energy and Environmental Design (LEED)-certified and non-LEED-certified buildings as well as ENERGY STAR-certified and non-ENERGY STAR-certified.

For thorough analytics, the authors combined and examined four sources of data: New York City Local Law 84: Benchmarking, Primary Land Use Tax Lot Output, US Green Building Council and US Environmental Protection Agency. The data sets were combined using two primary keys: the Borough, Block, Lot (BBL) number and the building address. Four years of energy use intensity values were obtained and normalized by shrinking the range of deviance in weather.

The findings indicate a significant improvement in the benchmarking progress when controlling building size, building type, year of construction or the most recent renovation and the presence of renovation. Interestingly, there is no significant difference in the energy benchmarking progress between LEED- and non-LEED-certified buildings. Possible reasons are explored and discussed.

From a methodological perspective, the study benefited from data disclosure as well as open data sources and used secondary data with a relatively large sample size. Many studies in the construction industry are based on the case-study approach, which may affect generalizability and causality of research findings. This unique approach illustrates the potential of secondary data analysis in the industry.

The purpose of this paper is to analyze a successful sustainability program run by an owner that has invested $23 million, received rebates of $10 million, accrued over $9 million of savings and has won top scores in LEED and Energy Star. Other owners planning to invest in energy conservation and sustainability can apply the lessons learnt to overcome common barriers.

This case study is based on project information supplied by the owner and structured interviews with the operational team. The projects are analyzed based on drivers and payback characteristics. Finally, the case study puts Adobe Systems' results within the context of the industry by matching it to the challenges identified in other reports.

The results show that 40 percent of projects are initiated by operation management personnel. The projects with the biggest savings are supported by third-party incentives. Only 10 percent of projects are evaluated by simulation and account for 12 percent of annual savings. Energy Star plays a crucial role for benchmarking performance and should be run annually. LEED EB is valuable when expending conservation efforts beyond energy aspects to sustainability. Performance benchmarking is a crucial step to determine the potential and priority of energy improvements.

The findings are based on the three towers in San Jose, California.

Building owners can incorporate the methodologies applied to evaluate these successful projects into their buildings. Facility managers can leverage the findings to present the advantages of recertification and commissioning.

A detailed project analysis, from a leader in practice, shows the importance of the local building operations team in sustainability and energy conservation.

This study aims to develop a web-based tool – LEED Energy Performance Online Submission Tool (LEPOST) to reduce the submission cost of the leadership in energy and environmental design (LEED) application process and facilitate green building design. Lifecycle cost reduction is a major driver for designing green buildings. LEED rating system has been well recognised and widely used in the green building industry. However, certification cost incurred in time and money is often a deterrent for some projects.

LEPOST automatically maps EnergyPlus and eQUEST energy simulation results to the LEED energy performance requirement submission templates using an extensible markup language (XML) data structure. It incorporates the Energy Star Target Finder online engine and current utility data to calculate points required to assess LEED Energy and Atmosphere Prerequisite 2 and Credit 1 automatically.

A comparative case study is conducted using an office building project. The study results show that the tool can reduce the amount of time for the LEED energy performance evaluation and submission process from more than 6 hours to 2 minutes. The total number of manual data entries is reduced from 442 to 20.

Future work includes the update to support LEED V4, the development of a parametric design function that can help design teams perform design alternatives to evaluate energy performance with minimum effort, and the integration with the LEED Online system.

The use of the tool by the building industry may decrease the cost of LEED certification for building owners, developers and design teams by simplifying the submission process.

The overall development framework of LEPOST contributes to the knowledge of the data interoperability in the building sector by demonstrating a viable solution to extract and map digital model information for achieving code and standard compliance purposes.

The key purpose of this paper is to quantify the size of the energy-efficiency gap (EEG) for air conditioners at the household level in Delhi. Most of the studies in the EEG tradition broadly define EEG as the difference between the actual and optimal level of energy efficiency. The optimal level of energy efficiency is defined at the societal level (that weigh social costs against social benefits) and the private level (that weigh private costs against private benefits).

The authors base the empirical results in this study on the basis of the primary data collected through in-person interviews of the high-income urban households in Delhi in 2014-2015. The sample of 101 households was collected through purposive random sampling. The survey data include information on type and number of AC possessed, hours of operations, socioeconomic characteristics and awareness and habits of households.

Using primary data of 101 high-income urban household, the paper finds that average EEG is about 10 per cent of total electricity demand of ACs at the household level. The maximum current saving potential measured as a difference between hypothetical energy consumption, if everyone adopts five star ACs, and actual energy consumption is estimated about 14 per cent of the total electricity demand of ACs. Results from the ordinary least squares regressions demonstrate that individual’s habits, attitude, awareness of energy-efficiency measures and perceptions significantly determine the size of the EEG. Among other things, authors’ empirical analysis shows that information can play a central role in guiding investment in energy-efficient technologies. From the analysis of improving access to understandable information about cost savings, payback period and emission reduction, it is found that full information leads to the significant reduction in the size of the expected private energy-efficiency gap from 10 to 2.98 per cent at the household level.

This paper tests the significance of non-economic and non-social factors in determining the size of the EEG. Apart from socioeconomic factors such as income, occupation and education, individual’s energy-conserving habits and attitudes, awareness of energy-efficiency measures and perceptions are other important factors found to have a significant negative impact on the size of the EEG. This is particularly important for the designing of information programs by policymakers for promoting energy-efficiency choices in view of the change that is required in the behavior and attitudes of the households.

In this study, authors try to estimate the size of the EEG of ACs for the high-income urban households in Delhi. The private energy-efficiency gap estimated at 10 per cent of the household demand for ACs indicates existing saving opportunity for the private households. It is found that provision of comprehensive information about cost savings, payback period and emission reduction reduces the size of the EEG significantly from 10 to 2.72 per cent at the private level. This highlights the existence of limited and incomplete information in the market about the possible costs and benefits of energy-efficiency investments. This paper tests the significance of non-economic and non-social factors in determining the size of the energy-efficiency gap. Apart from socioeconomic factors such as income, occupation and education, individual’s energy-conserving habits and attitudes, awareness of energy-efficiency measures and perceptions are other important factors found to have a significant negative impact on the size of the EEG. This is particularly important for the designing of information programs by policymakers for promoting energy-efficiency choices in view of the change that is required in the behavior and attitudes of the households.

Buildings/infrastructure are recognised to have a significant impact on the environment and the community, and hence there is pressure on industry practitioners to incorporate environmental and social considerations in addition to the traditional cost, time and quality. The development of sustainability reporting tools (SRTs) to assist in the management of “green” building/infrastructure projects is pivotal in informing on progress in sustainability practices. However, the rapid growth of SRTs in the last decade, with different criteria and methodology, has created complications for stakeholders.

The paper provides a comprehensive review of tools to guide practitioners, property investors, policy makers and developers towards making informed choices in “green” building/infrastructure projects. Comparative analyses, benefits and limitations of these tools are discussed in the paper.

Some of the findings from the analysis of SRTs include: an emphasis on environmental issues; scoring which does not account for uncertainty or variability in assessors’ perceptions; lack of published reasoning behind the allocation of scores; inadequate definition of scales to permit differentiation among projects; and the existence of non-scientific benchmarks.

The paper departs from earlier reviews to include a discussion on infrastructure SRTs, life cycle tools, and issues broader than the environment. Changes and additions, subsequent to earlier reviews, have been made to SRTs, making the updated review provided here useful.

The research investigates valuers' understanding of the value of sustainability in property and its' consideration in valuation practice in Australia. This paper explores valuers' perceptions of the relationships between sustainability and market values, sustainability and valuation variables, and the value influence of industry sustainability certification schemes. Further, this paper tracks prevalence of certified buildings in Australian commercial markets and the evolution of valuers' knowledge of sustainability certifications used in Australia.

This paper reports on the next rendition of a longitudinal study examining valuers’ practice in Australia. This research explores the evolution of Australian valuers' perception and knowledge of sustainability in valuation practice. The survey data has been periodically collected from practising valuers from 2007 to 2021. The survey questions investigate valuers' knowledge development, understanding, reporting and consideration of the relationship between sustainability and market value.

The results have identified the evolution of the influence of normative research on valuers' perceptions of the relationship between sustainability and value; with a clearer understanding emerging over time of where the value relationships are identified in valuation variables. Greater alignment between empirical Australian studies and valuers' perceptions of the influence of sustainability ratings on value, demonstrate the value connection for higher rated buildings under NABERS (energy rating) and Green Star. Whilst only 41% of the study's participants are including sustainability in their valuation reports, they include a higher level of commentary on building descriptions and initiatives, building ratings, and reporting of owner and tenant objectives, than in previous studies. Knowledge development relating to sustainability certification tool, NABERS was identified. This is likely linked to the introduction of mandatory disclosure legislation. This has also led to increased awareness and valuers' knowledge of the differences between the two key rating tools used in Australia.

The research has several limitations: firstly, recruitment of valuers and the number of valuers' responses has varied over time; secondly, due to collection methods respondents have a greater likelihood of having an interest in and knowledge of sustainability creating potential for positive bias; thirdly, respondents may have responded to the survey in different years, but due to anonymity there has been no ability to track this. The results provide insights into the Australian valuation profession but may not be fully representative of the profession overall in Australia.

The broader agenda of net zero, climate change, mitigation and carbon requirements, whether driven by market forces or government legislation, are generating changes in property markets as investors' reconsider their positions and model the implications of carbon emissions on their bottom lines. Introductions of policy and legislation over time in the Australian context have led to changes in valuation practice and increasing consideration of energy efficiency and ratings in the valuation of assets. However, further guidance and research still is required in Australia to assist in the knowledge development of valuers, and their ability to consider the emerging effects of sustainability, net zero and other market driven objectives including legislation, and how these may affect or influence their evaluation of market evidence and thus property values.

The research has tracked valuers' understanding, knowledge, and consideration of sustainability and energy efficiency in valuation practice since 2007. In that time the research has found that, as the market has evolved and more rated buildings are built (or retrofitted), so too has valuers' knowledge and consideration in valuation practices evolved. Valuers are more engaged with industry rating tools such as NABERS. This suggests that the Australian mandatory disclosure policies have contributed to changes in the market, which are then interpreted by valuers and reflected in their perceptions and consideration of energy ratings in valuation practice.

The dearth of green standards (GS) in sub-Saharan Africa is alarming and the green cost premiums (GCP) in seeking certification in emerging markets are scanty. This paper studied the Building Energy-Efficiency Code of Nigeria (BEEC) and estimated the potential GCPs associated with the various energy-efficiency ratings.

The study retrofitted 150 conventional residential bungalow and maisonette buildings using BEEC's energy-efficiency interventions and performed analytical estimating of the retrofitted designs. The mean cost premium associated with each energy-efficiency intervention is presented as well as their financial benefits and payback periods. The benefits are achievable financial-savings due to a reduction in energy consumption and savings in electricity payment estimated from the average energy demands of each building. An independent t-test was further conducted to determine the cost differential between energy-efficient design (ED) and conventional design over a five-year period.

The potential GCPs and their payback periods are actually less than feared. The study showed that less than 5% and 21% extra funding would be required to achieve 1 to 4-Star and 5-Star energy-efficiency ratings involving passive design interventions and photovoltaic systems. Passive and active design interventions produced a financial savings of $8.08/m² in electricity payment and $2.84/m² per annum in energy consumption reduction. The financial-savings ($10.92/m²) was objective to pay-off the GCPs in less than four years. The independent t-test analysis showed the cost of ED is more economical after four years into the project lifecycle.

The research provides cost benchmarks for navigating cost planning and budgetary decisions during ED implementation and births a departure point for advancing energy-efficient construction in developing markets from the rational economic decision perspective.