This is the author accepted manuscript. The final version is available from Elsevier via http://dx.doi.org/10.1016/j.jjie.2016.01.003Using a unique transaction database of condominiums in the Tokyo metropolitan area and a hedonic analytical framework, we find that eco-labelled buildings command a small but significant premium on both the asking and transaction prices. This finding is consistent with results from other countries but in contrast to these studies, the present analysis also incorporates buyer characteristics which provide further information on the sources of demand for eco-labelled real estate. A separate estimation by subgroups reveals that the price premium is primarily driven by wealthier households that exhibit a higher willingness-to-pay for eco-labelled condominiums, both as a total amount and as a fraction of the total sales price. Less affluent households are also shown to pay higher prices for the eco label but the effect is less pronounced. The results indicate that capitalised utility bill savings are likely to account for a large proportion of the observed premium but the higher premium paid by affluent households suggests that more intangible benefits of living in a green building may also play a role

Purpose – An economic indicator faces two requirements. It should be reported in a timely manner and should not be significantly altered afterward to avoid erroneous messages. At the same time, it should reflect changing market conditions constantly and appropriately. These requirements are particularly challenging for housing price indices, since housing markets are subject to large temporal/seasonal changes and occasional structural changes. The purpose of this paper is to estimate a hedonic price index of condominiums of Tokyo, taking account of seasonal sample selection biases and structural changes in a way it enables us to report the index in a manner which is timely and not subject to change after reporting. Design/methodology/approach – The paper proposes an overlapping-period hedonic model (OPHM), in which a hedonic price index is calculated every month based on data in the “window” of a year ending this month (this month and previous 11 months). It also estimates standard hedonic housing price indexes under alternative assumptions: no structural change (“structurally restricted”: restricted hedonic model) and different structure for every month (“structurally unrestricted”: unrestricted hedonic model). Findings – Results suggest that the structure of the housing market, including seasonality, changes over time, and these changes occur continuously over time. It is also demonstrated that structurally restricted indices that do not account for structural changes involve a large time lag compared with indices that do account for structural changes during periods with significant price fluctuations. Social implications – Following the financial crisis triggered by the US housing market, housing price index guidelines are currently being developed, with the United Nations, International Monetary Fund, and Organization for Economic Co-operation and Development leading the way. These guidelines recommend that indices be estimated based on the hedonic method. We believe that the hedonic method proposed here will serve as a reference for countries that develop hedonic method-based housing price indices in future. Originality/value – In the many studies involving conventional housing price indices, whether those using the repeat-sales method or hedonic method, there are few that have analyzed the problem of market structural changes. This paper is the first to construct a large database and systematically estimate the effect that changes in market structure have on housing price indices.

Despite an increasing interest in issues surrounding environmental equity, much research evidence to date is based on studies adopting cross-sectional approaches which do not adequately capture the processes and mechanisms generating inequities. Longitudinal studies may better inform policy measures to remedy inequity between populations, but the few that have been undertaken have mostly been focused solely on environmental risks—ignoring access to amenities. As a case study, we adopt a longitudinal approach in this work to investigate the association between sociodemographic indicators and public park provision over an eighteen-year period in the city of Yokohama, Japan. We show that inequities in park provision are present over the whole time period. Hedonic modelling shows that park accessibility is positively associated with house and land prices in the city. Our results suggested some, relatively weak, evidence of two causal processes: New parks are located in more affluent communities; yet new parks also appear to encourage further move-in of affluent populations. We suggest that park provision by administrative authorities in less-affluent neighbourhoods may be required to maintain equity in access to these valuable community resources. Economic incentives, such as subsidy provision, may have a role to play to encourage park provision by developers.

In the formulation of hedonic models, in addition to locational factors and building structures which affect the house prices, the generation of the omitted variable bias is thought to occur in cases when local environmental variables and the individual characteristics of house buyers are not taken into consideration. However, since it is difficult to obtain local environmental information in a small neighborhood unit and to observe individual characteristics of house buyers, these variables have not been sufficiently considered in previous studies. We demonstrated that non-negligible levels of omitted variable bias are generated if these variables are not considered.