‘Green’ Building as an Urban Branding Tool: The Israeli Example

Over the last two decades, greenhouse gas abatement through energy conservation has become a major goal in developed countries. This challenges the building sector to become more environmentally responsible and resource-efficient, especially since it represents a large potential source of energy savings. In recognition of the benefits of green building, an increasing number of countries are devising green strategies for both public and private sector construction. Studies have examined the construction cost “premium” involved in achieving green certification, suggesting that the additional costs are relatively low, around 2% on average. Evidence indicates, however, that “green premia” in terms of rental and sales prices of properties in certified green buildings are systematically higher than 2%. Thus, making ‘green’ buildings affordable to sectors of the population which “need” it the most, will likely depend on government funding.