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The Economics of Green  Building / Piet Eichholtz, Nils Kok, and John M. Quigley, UC Center for  Energy and Environmental Economics, Jan. 2011, 37 p. (E3 WP-002)http://www.uce3.berkeley.edu/WP_002.pdfResearch on climate  change suggests that small improvements in the "sustainability" of  buildings can have large effects on greenhouse gas emissions and on  energy efficiency in the economy. This paper analyzes the economics of  "green" building. First, we analyze a panel of office buildings  "certified" by independent rating agencies, finding that large recent  increases in the supply of green buildings and the unprecedented  volatility in property markets have not significantly affected  the relative returns to green buildings. Second, we analyze a large  cross section of office buildings, demonstrating that economic premiums  in rent and asset value are substantial. Third, we relate the economic  premiums for green buildings to their sustainability, confirming that  the attributes rated for both thermal efficiency and sustainability contribute to premiums in rents and asset values. Even among green buildings, increased energy efficiency is fully capitalized into rents and asset values. (© UCE3)