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Structural Equation Modelling for Detecting Latent “Green” Attributes in Real Estate Pricing Processes

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New Metropolitan Perspectives (NMP 2022)

Part of the book series: Lecture Notes in Networks and Systems ((LNNS,volume 482))

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Abstract

The presence of latent factors in the residential real estate market emerges by measuring and evaluating the effects of energy performance on price changes. The effects of green attributes on the price formation process are particularly interesting to explore, being closely linked to the energy performance of buildings. This last is regulated by increasingly stringent energy and environmental policies both internationally and nationally, translated into a thorough regulatory framework which ranges from the Directive 2002/91/EC - Energy Performance of Buildings Directive (EPBD) up to the recent Communication EU - A Renovation Wave for Europe 2020. Thus, this work aims to propose Structural Equation Models (SEMs) as a suitable approach to the detection and estimation of the effects of “green” attributes on residential property prices. This work, therefore, presents a survey of SEMs methodology, highlighting its theoretical and operational principles and suggesting future insights and applications.

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Author information

Authors and Affiliations

  1. Architecture and Design Department, Politecnico di Torino, Viale Mattioli 39, 10125, Turin, Italy

    Elena Fregonara & Alice Barreca

Authors
  1. Elena Fregonara
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  2. Alice Barreca
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Corresponding author

Correspondence to Alice Barreca .

Editor information

Editors and Affiliations

  1. Dipartimento PAU, Mediterranea University of Reggio Calabria, Reggio Calabria, Reggio Calabria, Italy

    Francesco Calabrò

  2. Mediterranea University of Reggio Calabr, Reggio Calabria, Italy

    Lucia Della Spina

  3. University of Santiago de Compostela, Santiago de Compostela, Spain

    María José Piñeira Mantiñán

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Fregonara, E., Barreca, A. (2022). Structural Equation Modelling for Detecting Latent “Green” Attributes in Real Estate Pricing Processes. In: Calabrò, F., Della Spina, L., Piñeira Mantiñán, M.J. (eds) New Metropolitan Perspectives. NMP 2022. Lecture Notes in Networks and Systems, vol 482. Springer, Cham. https://doi.org/10.1007/978-3-031-06825-6_155

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