Observing energy rating stars through the Australian Consumer Law lens: How volume home builders’ advertising can fail consumers

Warren‐Myers, Georgia; Bartak, Erika; Cradduck, Lucy

doi:10.1016/j.enpol.2020.111370

Cited by 11 publications

(11 citation statements)

References 31 publications

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“…Consumers (and sometimes professionals) have been found to be unclear about what the many sustainability ratings tools measure and what the results communicate (Collia and March 2012;Green, Tiwari et al 2018;Rauland and Newman 2015;Xia, Chen et al 2015). Poor or inappropriate information from the property development and real estate sector-such as misuse or misinterpretation of sustainability ratings (Martek and Hosseini 2018;Warren-Myers, Bartak et al 2020)-reinforces the status quo and can prevent industry innovation in response to consumer demands.…”

Section: Stage Four: Policy Workhopsmentioning

confidence: 99%

“…Importantly, the array of rating tools lead to confusion among built environment professionals as to their scope and the standards applied (Doan, Ghaffarianhoseini et al 2017;Rauland and Newman 2015;Wilkinson 2013). There is evidence of 'greenwashing' of ratings by residential property developers (Martek and Hosseini 2018;Warren-Myers, Bartak et al 2020).…”

Section: Introduction: Sustainable Housing At a Neighbourhood Scalementioning

confidence: 99%

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Sustainable housing at a neighbourhood scale

Dühr¹,

Berry²,

Moore³

2023

AHURI Final Report

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Related reports and documentsInquiry into housing in a circular economy https://www.ahuri.edu.au/research-in-progress/Inquiry-intohousing-in-a-circular-economy AHURI AHURI is a national independent research network with an expert not-for-profit research management company, AHURI Limited, at its centre. AHURI's mission is to deliver high quality research that influences policy development and practice change to improve the housing and urban environments of all Australians.Using high quality, independent evidence and through active, managed engagement, AHURI works to inform the policies and practices of governments and the housing and urban development industries, and stimulate debate in the broader Australian community. AHURI undertakes evidence-based policy development on a range of priority policy topics that are of interest to our audience groups, including housing and labour markets, urban growth and renewal, planning and infrastructure development, housing supply and affordability, homelessness, economic productivity, and social cohesion and wellbeing. AHURI Limited also gratefully acknowledges the contributions, both financial and in-kind, of its university research partners who have helped make the completion of this material possible.The authors thank the research participants for their time and for sharing their insights, as well as Jack Wilde and Jennifer Bonham who provided research assistance. DisclaimerThe opinions in this report reflect the views of the authors and do not necessarily reflect those of AHURI Limited, its Board, its funding organisations or Inquiry Panel members. No responsibility is accepted by AHURI Limited, its Board or funders for the accuracy or omission of any statement, opinion, advice or information in this publication. AHURI journalAHURI Final Report journal series is a refereed series presenting the results of original research to a diverse readership of policy makers, researchers and practitioners. Peer review statementAn objective assessment of reports published in the AHURI journal series by carefully selected experts in the field ensures that material published is of the highest quality. The AHURI journal series employs a double-blind peer review of the full report, where anonymity is strictly observed between authors and referees.

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Section: Stage Four: Policy Workhopsmentioning

confidence: 99%

Section: Introduction: Sustainable Housing At a Neighbourhood Scalementioning

confidence: 99%

Sustainable housing at a neighbourhood scale

Dühr¹,

Berry²,

Moore³

2023

AHURI Final Report

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“…Despite the limited academic empirical analysis of office markets in Australia, Warren-Myers (2009, 2011, 2013, 2016) has investigated the valuation profession and their understanding and perception of the relationship between sustainability and market value in a longitudinal study. Subsequent work by Thanh Le and Warren-Myers (2019) undertook a focused study of commercial institutional grade property valuers and Warren-Myers et al . (2020a, b) examined residential valuers.…”

Section: The Australian Context Of Sustainability Energy Efficiency A...mentioning

confidence: 99%

Valuing sustainability Part 2: Australian valuers' perception of sustainability in valuation practice

Warren‐Myers

2022

JPIF

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PurposeThe research investigates valuers' understanding of the value of sustainability in property and its' consideration in valuation practice in Australia. This paper explores valuers' perceptions of the relationships between sustainability and market values, sustainability and valuation variables, and the value influence of industry sustainability certification schemes. Further, this paper tracks prevalence of certified buildings in Australian commercial markets and the evolution of valuers' knowledge of sustainability certifications used in Australia.Design/methodology/approachThis paper reports on the next rendition of a longitudinal study examining valuers’ practice in Australia. This research explores the evolution of Australian valuers' perception and knowledge of sustainability in valuation practice. The survey data has been periodically collected from practising valuers from 2007 to 2021. The survey questions investigate valuers' knowledge development, understanding, reporting and consideration of the relationship between sustainability and market value.FindingsThe results have identified the evolution of the influence of normative research on valuers' perceptions of the relationship between sustainability and value; with a clearer understanding emerging over time of where the value relationships are identified in valuation variables. Greater alignment between empirical Australian studies and valuers' perceptions of the influence of sustainability ratings on value, demonstrate the value connection for higher rated buildings under NABERS (energy rating) and Green Star. Whilst only 41% of the study's participants are including sustainability in their valuation reports, they include a higher level of commentary on building descriptions and initiatives, building ratings, and reporting of owner and tenant objectives, than in previous studies. Knowledge development relating to sustainability certification tool, NABERS was identified. This is likely linked to the introduction of mandatory disclosure legislation. This has also led to increased awareness and valuers' knowledge of the differences between the two key rating tools used in Australia.Research limitations/implicationsThe research has several limitations: firstly, recruitment of valuers and the number of valuers' responses has varied over time; secondly, due to collection methods respondents have a greater likelihood of having an interest in and knowledge of sustainability creating potential for positive bias; thirdly, respondents may have responded to the survey in different years, but due to anonymity there has been no ability to track this. The results provide insights into the Australian valuation profession but may not be fully representative of the profession overall in Australia.Practical implicationsThe broader agenda of net zero, climate change, mitigation and carbon requirements, whether driven by market forces or government legislation, are generating changes in property markets as investors' reconsider their positions and model the implications of carbon emissions on their bottom lines. Introductions of policy and legislation over time in the Australian context have led to changes in valuation practice and increasing consideration of energy efficiency and ratings in the valuation of assets. However, further guidance and research still is required in Australia to assist in the knowledge development of valuers, and their ability to consider the emerging effects of sustainability, net zero and other market driven objectives including legislation, and how these may affect or influence their evaluation of market evidence and thus property values.Originality/valueThe research has tracked valuers' understanding, knowledge, and consideration of sustainability and energy efficiency in valuation practice since 2007. In that time the research has found that, as the market has evolved and more rated buildings are built (or retrofitted), so too has valuers' knowledge and consideration in valuation practices evolved. Valuers are more engaged with industry rating tools such as NABERS. This suggests that the Australian mandatory disclosure policies have contributed to changes in the market, which are then interpreted by valuers and reflected in their perceptions and consideration of energy ratings in valuation practice.

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“…The purpose of energy codes and standards is to raise the minimum performance to a socially acceptable level, essentially lifting the bottom of the market (Warren-Myers et al, 2020). The Australian experience for housing is similar, albeit later, when compared to many developed nations.…”

Section: Literature Reviewmentioning

confidence: 99%

Australia's Experience of Combining Building Energy Standards and Disclosure Regulation

Berry

Moore

Ambrose

2022

Front. Sustain. Cities

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Multiple market failures have historically delivered housing that is environmentally and economically sub-optimal. Minimum energy standards are a popular policy tool for lowering energy use and anthropogenic carbon emissions in the built environment, but evidence shows they fail to drive performance beyond that minimum. Mandating the disclosure of energy performance on sale or lease of property has been introduced in some jurisdictions to transform the building stock and encourage energy and carbon saving improvements. These policy instruments address different market failures and have the potential to act as complementary regulation, but to date there has been little evidence that the combination may deliver greater benefits than each individual policy measure. The analysis of 342,674 housing energy assessments in Australia from May 2016–June 2021 highlights the impact of complementary vs. single policy instruments. We find that the building regulatory process alone delivers certainty regarding minimum performance, but when matched with disclosure regulation, the market is pulled slightly toward higher performance outcomes than for where building regulations alone are used. While only a small improvement in performance, the data supports the power of complementary regulation for long-life housing assets, similar to the benefits found for shorter-life assets such as household appliances; in essence creating both a carrot and a stick for consumers and the wider market. The data from Australia presented in this paper suggests that the use of complementary regulation may deliver improved environmental and economic outcomes and could help jurisdictions governing a transition to more sustainable housing as part of the wider transition to sustainable cities.

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Observing energy rating stars through the Australian Consumer Law lens: How volume home builders’ advertising can fail consumers

Cited by 11 publications

References 31 publications

Sustainable housing at a neighbourhood scale

Sustainable housing at a neighbourhood scale

Valuing sustainability Part 2: Australian valuers' perception of sustainability in valuation practice

Australia's Experience of Combining Building Energy Standards and Disclosure Regulation

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