Diffusion patterns and drivers of higher-rated green buildings in the Mumbai region, India: a developing economy perspective

ABSTRACT

Urban growth and extensive construction in the cities of developing countries raise questions about environmental pollution and resource challenges, along with sustainable techniques to mitigate them. Research in developed economies has concluded that sustainable construction practices and certifications like Leadership in Energy and Environmental Design (LEED) can help to reduce these effects at a regional level. Metropolitan areas in developing countries, such as the Mumbai region, have had LEED-certified buildings for over a decade, but their drivers and diffusion patterns have not been studied. A regression analysis on the Mumbai's dataset of LEED-certified buildings endorsed diffusion pattern different than hierarchical diffusion of developed economies. Green buildings in the peripheral business district of Navi Mumbai are certified at higher levels than those in the central business district (CBD). Higher-level green buildings in planned outer business districts are attracting tenants from the CBD to Navi Mumbai, especially those in sectors with intensive human-capital needs. The driver for tenants demanding higher-level green buildings is the signalling benefits associated with green buildings. The results establish a linkage between occupant priorities and the type of credits emphasised in the LEED certification process. Mumbai’s higher-rated green buildings have primarily pursued credits from LEED’s Energy and Atmosphere category, signalling superior efficiency.

KEYWORDS:

• Mumbai commercial buildings
• green buildings
• hierarchical diffusion theory
• LEED scoresheet
• signalling benefits
• EA category credits
• tenant driver

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No potential conflict of interest was reported by the author(s).

Additional information

Notes on contributors

Saurabh Verma

Saurabh Verma is a faculty in finance, data analytics and sustainability in the School of Real Estate, RICS School of Built Environment, Amity University, Noida. He is also completing his PhD dissertation on Green Commercial Buildings in Indian cities. Earlier, he has worked with the financial services industry and for the last ten years has been actively engaged in the teaching, research and program development in real estate and urban infrastructure.

Satya N. Mandal

Prof. Satya N. Mandal is a professor in School of Construction, RICS School of Built Environment and comes with rich experience in academics and industry. He is a Fellow of the Royal Institution of Chartered Surveyors (FRICS) and a Fellow of the Institution of Engineers India. Prof. Mandal has worked for 34 years in civil construction work for the Indian power industry, and his expertise also lies in systems and quality assurance.

Spenser Robinson

Prof. Spenser Robinson is an associate professor and director of real estate with the College of Business Administration, Central Michigan University, USA. His service roles and publication record demonstrate a track record of thought leadership in sustainable real estate. He regularly contributes research and consulting to academic and industry groups in real estate capital markets, investment, sustainability and valuation.

Deepak Bajaj

Prof. Deepak Bajaj is a Distinguished Adjunct Professor with RICS School of Built Environment and comes with rich experience in the industry as well as academics. He has worked as Director-Projects and Investments within the Indian real estate industry. As an academician he was earlier associated for ten years with University of Technology, Sydney; is a visiting faculty with SKEMA Business School and also associated with Chongqing Jianzhu College, Chongqing, China. His professional and academic expertise is in project management and risk assessment.