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We study ceremonial adoption of voluntary standards, where participants adopt the standard in principle but do not change their practices. Ceremonial adoption can benefit individual participants, who may be able to reap the benefits of association with the standard at lower cost, but it can be problematic for overall levels of adoption. We conceive of ceremonial adoption as an interaction between strategic incentives of participants and social ties to their audiences, such that not all participants are likely to ceremonially adopt. Our setting is the Leadership in Energy and Environmental Design (LEED) certification for sustainable construction. We study the conditions under which projects register for LEED certification, allowing them to claim affiliation with LEED, but then do not actually finish certification. While our data are correlational in nature, our results suggest that studying the competition for audience members (in our case, occupants) can provide greater understanding of certification behavior as well as overall levels of adoption. Our findings have implications for organizations that design and maintain voluntary standards and for organization theorists who wish to understand field-level change. Thus, we provide more evidence that strategy and organizational theory interact in important and often unexamined ways.

The purpose of this paper is to explore the notion of sustainability and research reporting price premiums for LEED‐certified buildings.

This paper explores the notion of sustainability and research reporting price premiums for LEED‐certified buildings. The durability of certification levels is explored by converting projects developed under the initial NC2‐series system to a new vintage rating adopted in 2009. This conversion is made by applying Lagrangian multipliers to model stochastic impacts.

The study reveals that 18 percent of 591 projects developed under the NC2‐Series were “misclassified” in terms of certification levels when converted to new NCv2009 standards. To the extent the market has pursued LEED certification levels, the unanticipated changes may have led to the adoption short‐term solutions that are inappropriate due to the long‐term nature of real estate assets.

Given the complexity of the LEED rating system, it is unknown how the market will react to the lack of durability and approach pricing over the long‐term.

The results indicate market participants should adopt a proactive approach to LEED certification.

The study identifies significant dynamics in the LEED certification system for new construction and behavioural responses that have not been reported in the literature.

This study aims to examine whether Leadership in Energy and Environmental Design (LEED) certification yields additional premiums for Shanghai’s office rental sector.

The hedonic model is utilized to evaluate the impact of LEED, as well as of other factors, on the rental values of 59 Grade A office buildings in Shanghai, including 23 LEED-certified buildings and 36 non-LEED-certified buildings.

It is found that rental values of buildings with LEED are about 12.8 per cent than those of buildings without the same certification. Other factors, for instance accessibility to facilities such as subway station and 4-star hotels, the availability of catering services in surrounding areas as well as the building’s location (i.e. inside the CBD) also are significantly positively correlated with office rents in the sample commercial buildings.

Besides being one of the earlier contributions to the literature with regard to the study of the impact of green certifications in China’s office market, the findings in this study also provide some empirical evidence for stakeholders, such as developers, investors, property managers and market practitioners, to evaluate the introduction of green features (and/or green certifications such as LEED) as an investment decision.

Leadership of the project team is vital for green building projects in achieving LEED certification. Literature findings confirm the need for managing green building projects differently from ordinary projects. The team leader should be able to work with the project team to manage the general project activities while following the LEED certification procedure to finally achieve LEED certification. The paper aims to discuss these issues.

This paper presents a research project which was aimed to explore the role of team leadership in achieving LEED certification in a green building project through a case study research approach.

The research findings revealed the importance of utilizing the appropriate leadership roles of project team members in addition to the project leader’s role to achieve LEED certification for green building projects successfully. The research proposed four team leadership processes required to meet the LEED challenges; namely, proactive planning and visualization; collective implementation; teamwork for win-win; and, continuous learning and knowledge sharing.

Based on these findings, the research suggests a new project team environment enabled by effective team leadership to meet the LEED challenges. It is argued that the team leadership role of every team member is unique and best suited when used synergistically to achieve LEED certification for the project. The research is original in applying team leadership concepts to green building projects in a real-life setting.

The researchers analyzed factors affecting the adoption of the Leadership in Energy and Environmental Design (LEED) green-building certification system in Jordan, including financial performance of certified projects along with broader barriers that may impact developers’ interest in LEED.

The authors first reviewed online data for all LEED registered and certified projects in Jordan, recruited LEED-certified project stakeholders, collected documents related to LEED projects and conducted LEED category credit summaries, financial cost-benefit analyses and spot-checking reported values in local markets. The authors then visited projects sites and interviewed various project stakeholders to understand better stakeholders' decision-making processes concerning LEED and relevant factors (financial, branding, cultural, political, etc.).

Obtaining LEED certification in Jordan was financially feasible as evinced in both the quantitative analysis and interviews. However, the authors found that there was very limited interest in LEED among Jordanian developers. Barriers included widespread cynicism toward green building concepts as well as a lack of local expertise in installing and maintaining green technologies. To overcome these barriers, the authors recommend that green building initiatives place a greater emphasis on education and public-promotion activities.

The research data were limited to projects that had successfully achieved LEED certification. Broader qualitative research conducted across the Jordanian building community could provide additional insights, but such an investigation is beyond the scope of the current study.

The complexity of adapting a Western green building standard (LEED) to a non-Western context is discussed in detail. The findings suggest that understanding regional development challenges, local markets and cultural differences is vital for successfully implementing green building certification systems.

For over 25 years, the United States Green Building Council (USGBC) has significantly influenced the US sustainable construction through its leadership in energy and environmental design (LEED) certification program. This study aims to delve into how Baton Rouge, Louisiana, fares in green building adoption relative to other US capital cities and regions.

The study leverages statistical and geospatial analyses of data sourced from the USGBC, among other databases. It scrutinizes Baton Rouge’s LEED criteria performance using the mean percent weighted criteria to pinpoint the LEED criteria most readily achieved. Moreover, unique metrics, such as the certified green building per capita (CGBC), were formulated to facilitate a comparative analysis of green building adoption across various regions.

Baton Rouge’s CGBC stands at 0.31% (C+), markedly trailing behind the frontrunner, Santa Fe, New Mexico, leading at 3.89% (A+) and in LEED building per capita too. Despite the notable concentration of certified green buildings (CGBs) within Baton Rouge, the city’s green building development appears to be in its infancy. Innovation and design was identified as the most attainable LEED benchmark in Baton Rouge. Additionally, socioeconomic factors, including education and income per capita, were associated with a mild to moderate positive correlation (0.25 = r = 0.36) with the adoption of green building practices across the capitals, while sociocultural infrastructure exhibited a strong positive correlation (r = 0.99).

This study is beneficial to policymakers, urban planners and developers for sustainable urban development and a reference point for subsequent postoccupancy evaluations of CGBs in Baton Rouge and beyond.

This study pioneers the comprehensive analysis of green building adoption rates and probable influencing factors in capital cities in the contiguous US using distinct metrics.

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 purpose of this paper is to address the apparent slow acceptance on the part of developers located in the USA to seek green certifications. If green-certified construction costs more than non-green construction, then is there a financial reason for not seeking a green rating. Do green buildings perform better than non-green buildings financially? The paper develops and presents a discounted present value model for doing a cost-benefit analysis for building green. This model enables an investor to determine the feasibility of constructing a new green-certified building instead of a conventional non-green building. Non-green buildings are not certified by a rating agency such as Leadership in Energy and Environmental Design (LEED), Energy Star or Building Research Establishment Environmental Assessment Method (BREEAM). Real estate permits are granted by local municipalities in the USA. This means that local government mandates requiring green construction that significantly adds to the initial cost of a project could have the unintended result of encouraging new non-green construction just outside their municipal boundaries.

The paper collects publically available research data for office buildings located in the USA, and inputs this information into an income statement. It tests the hypothesis: is green-certified construction a financially feasible choice for an investor? An incremental approach using a 15-year holding period is presented. This time period takes into account equipment wear and tear. Heating/cooling systems and other green-technologically based operating systems have a limited life and do not last for 30 or 40 years. They are likely to need replacement after 15 years have lapsed.

The negative net present value (NPV) results and high payback periods indicate that increased rents for green construction, a tax credit for the present value loss and/or property-tax reduction covering the shortfall is needed as an incentive to commercially build green. The implication of a negative NPV is that green office buildings will be built by government agencies where green is mandated, corporations that want a green image and benefit from this image, where local ordinances mandate green construction features and where local and federal tax incentives are available increasing a construction project's feasibility.

The limitation of any cost-benefit study is that analytical models and/or data used to forecast energy and water consumption savings in green-certified buildings compared to conventional buildings can be inaccurate. Forecasting models can understate or overstate the actual savings realized from green construction especially in the long-term given the difficulty of predicting equipment wear and tear, net rents and energy costs. The modeled percentage cost associated with green new construction features could remain constant or grow through time. Tables I and II results assume energy and water expenses remain a constant percentage over the 15-year period. The agency costs associated with obtaining a LEED or BREEAM certification was not calculated as an upfront cost. Certification by LEED or BREEAM increases the upfront cost associated with building a green building.

The length of the payback period estimates coupled with negative NPV for green certified compared to non-green construction suggests that developers do not have an incentive to build green. Higher WACC rates would result in green-certified projects being less feasible to build.

The LEED certification point system may need to be reviewed. Points are assigned for features that improve occupant satisfaction, but may have little impact on reducing energy usage.

A model is presented for determining whether green-certified construction is financially feasible. The model enables the investor to determine the size of a tax incentive that is needed to enable new green construction to be economically feasible to build. The higher the negative NPV the larger the income or property tax incentive or other financial incentives needed. Prior research studies compared green and non-green buildings, but did not compare the energy savings generated to the additional construction and upfront costs incurred using a discount rate. They assumed the energy savings justified the additional initial cost associated with building a new green certified.

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.

It is becoming increasingly clear that as the pressures of climate change increase around the world, all nations must strive to lower their carbon footprint through conservation. If the growth trend of green building and infrastructure construction is to be continued and improved upon, then evidence must be collected as to the benefits they bring about, and the level of support they enjoy in the market. The purpose of this paper is to shed light on the economic performance of green buildings by evaluating whether LEED for Homes and BOMA-BEST properties capture higher market valuations and lower vacancy rates. These types of research questions have not been investigated to a great deal in the Canadian context. The primary analysis concerning municipal market valuation of green buildings was conducted using robust ordinary least squares and logistic regression models. Commercial vacancy rates were compared through the use of χ² tests. Our analysis did not lead to conclusive evidence that there exists a “green” premium in the real estate market with respect to municipal market valuations. The authors argue that this may largely be due to municipal appraisal methods that currently do not incorporate sustainability factors. As such, they may not adequately reflect market tastes and trends. Furthermore, while the vacancy rates of green commercial buildings were, on the whole, lower than their non-green counterparts, the differences were not statistically significant. Given these results, the authors propose a set of research activities that the academic community should pursue.

Statistical techniques are utilized test whether green certification (LEED/BOMA-BEST) leads to higher municipal valuation for both commercial and residential green properties, using regression analysis. Furthermore, χ² tests are conducted to evaluate whether certification leads to lower vacancy rates for commercial properties.

In terms of valuation, certification does not exert (on average) a positive role in terms of higher valuations for both commercial and residential properties. However, with respect to vacancy rates, there is a tendency towards lower vacancy rates for green properties, but the relationship is not statistically significant.

The next set of research needs to gather greater amount of data with respect to how municipal evaluations are performed since the results are counter-intuitive. Greater tracking of the financial performance of green buildings should be conducted and made available for both public and private bodies. Particularly, rental and sale prices of green buildings need to be tracked in an organized manner.

The valuation techniques utilized by the municipal authorities need revision as green properties are being assessed without appropriate guidance from educational institutions. Furthermore, the limited amount of “green” valuation techniques in existence may not be applied.

This is the first Canadian-based research looking into the valuation of green certification using rigorous quantitative statistical techniques and original and publicly available data. Furthermore, it holds important lessons for municipal authorities with respect to green building valuation beyond Canada as the limitations of current practice go mostly likely beyond the North American context.