Z E M C H 2 0 1 2 I n t e r n a t i o n a l C o n f e r e n c e
124
First, there is a limit to the number of companies such as those in the energy
industry that are sensitive to the environment as in c). In the case of d) and f) as well, it
is difficult to believe, based on Japan's industrial structure, that many such companies
necessarily exist. With regard to government-related institutions and public organizations
in e), there is an underlying contraction due to the effect of public servant system
reforms, regulatory reforms, etc.
Therefore, when it comes to advancing environmental policy via green building
policies, it is vital to maximize the effect on companies corresponding to b). This is
because the effect is not limited to specific industries/companies but relates to all
industries/companies. The demand for green buildings and amounts paid for them will
likely change in future based on how companies expand their CSR activities, including
environmental policies.
Moreover, since the lifespan of property is long, it is necessary to make decisions
from a long-term perspective. Just because green buildings do not currently have a
premium does not mean that one will not exist in future.
Expense Reduction Effect (
t
v
O
)
In comparison to other buildings, green buildings are designed so that they have
greater energy efficiency. Specifically, energy costs will decrease by increasing
insulation and the like. This kind of effect is greater in cold regions (i.e., it changes based
on climate). Furthermore, technologies have been introduced that reduce the various
kinds of energy generated by activities in buildings, by means of facilities that increase
energy efficiency such as lighting. There is also a movement toward attempting to
control carbon emission amounts by using alternative energy such as solar power and
geothermal power. The economic value accompanying these kinds of increases in
energy efficiency is linked to the increased value of green buildings through the
reduction of
(
)
1
1
1
1
,.....,
,
−−+
−
+
+
vmt
m
t
v
t
v
O OO
. This effect is the added economic value indicated
by Dian and Miranowski (1989) and Banfi et al. (2005).
Uncertainty remains, however. This is because it is extremely difficult to estimate
the future cost reduction effect that will occur over a building's lifespan of
m
years.
There is no guarantee current energy costs will be maintained in future, and price
differentials between energy sources such as electricity, gas, etc. also change. In
particular, the effect will change considerably depending on how one perceives the
structural changes in energy costs accompanying the transformation of electric power
policy due to the Great East Japan Earthquake. To put it another way, the more energy
costs increase, the greater the expense reduction effect will become.
Even assuming that costs are reduced from an operating perspective, the possibility
remains that if facilities become more sophisticated and have higher added value, the
initial investment will become greater and higher costs will be incurred for investment in
maintenance and repairs.
Discount Rate/Liquidity Risk Change Effect
The discount rate is one of the most important factors in determining property
values. In the matter of price sensitivity, the effect due to changes in discount rate is
relatively large compared to the extent of fluctuations in expenses and income.
With regard to the issue of determining the discount rate for green buildings,
research focusing on socially responsible investment funds is a useful reference.
Socially responsible investment funds are composed of investment funds focusing only
on companies with externalities that have satisfied certain standards relating to social
contributions. Studies have been published indicating it is possible to obtain relatively
