Willingness to Pay for Green Building Features in the Medium-Income Residential Market of Makurdi, Nigeria

Abstract

Investigating willingness to pay for green buildings in Nigeria and other developing nations is an urgent need since the world is advocating sustainable development, which the building industry must adopt while attempting to satisfy housing needs that are yet to be met in most developing countries. Recognizing that medium-income earners are victims of housing deficit who can afford housing to a reasonable extent in Nigeria, this paper aimed to investigate medium-income householders' willingness to pay for a green residential building to aid green building investment decisions in Makurdi. Three objectives were put in place to pursue the aim in which the study was approached quantitatively and adopted survey strategy using 300 questionnaires as the instruments for data collection as suitable for contingent valuation technique. Data collected were analyzed using the weighted mean, logistic model and multiple regression. The findings were that Makurdi medium-income earners find green features essential and are willing to pay a 3.3% premium price to purchase residential buildings with green features. Therefore, the paper recommends that the government and private investors strategically consider green residential buildings while creating more awareness of the importance of building green.

Residents’ Awareness of Green Building Features in Ibadan Municipality, Nigeria

“…It can also be inferred that level of education can be attributed to either a high or low level of awareness of green building features. [20,34], found that educational background affects level of awareness and factors with a high degree of influence on users' preference for green features in residential buildings are the educational factor and the income factor. A.…”

“…The finding shows that 23% of residents were aware of green buildings, and 77% of residents in the high-density area were not aware of green building features. The reasons for this can be attributed to the low level of literacy in this zone as established by [20,32] that a low level of awareness of green building features can be attributed to low educational factors and level of exposure. In the medium density, 39.3% were aware, while 60.7% were not.…”

“…The findings revealed that the respondents found green features essential. [20] assessed factors influencing users' preference for green building features in Ibadan, Nigeria and established that factors relating to socio-economic characteristics such as knowledge regarding the benefits of green building education and income affect users' preference for green building features. In view of the foregoing, this study seeks to provide answers to the following questions: Who live in the study area?…”

Willingness to Pay for Green Buildings in Ghana: What Are the Influencing Factors?

“…The upfront cost of building green is amongst the most cited inhibitors of green building adoption (Dwaikat & Ali, 2016;Takuh, Adeyemi, et al, 2021) across the extensively studied area of green building adoption drivers and inhibitors globally (Wuni et al, 2019). In Ghana, previous studies have found barriers such as lack of government support , lack of demand (Djokoto et al, 2014), and low sensitization (Guribie et al, 2021) as the most significant hindrances to green building adoption.…”

“…There is however ample evidence of willingness to pay for green buildings from other countries. In Nigeria, Takuh, Adeyemi, et al (2021) found mediumincome earners willing to pay a 3.3% premium for green homes. In Indonesia, Njo et al (2021) found 39.7% of respondents willing to pay a 6-15% premium, and 38.53% willing to pay a 5% premium.…”