Economic Efficiency of Green Buildings Essay Example | Topics and Well Written Essays - 1250 words - 1

Economic Efficiency of Green Buildings - Essay ExampleWe can get information about the environmental cognitive operation of CASBEE certified buildings by accessing their certification reports. Also, the cash flow information about some CASBEE buildings, which argon owned by real estate investment trusts, is uncommitted in their respective financial reports.An analysis to segregate conventional and green buildings was first conducted on all properties held by the Japanese Real Estate enthronisation Trusts (J-REITs). The data for properties were collected based on the latest financial reports as of March 2011. It was found that out of total 1822 properties held by 35 REITs, 23 are CASBEE certified buildings (Table 1). For further analysis then, the 1799 in-CASBEE certified building was considered as conventional, the 23 CASBEE certified buildings were considered as green buildings for the purposes of this analysis.To determine economic performance, one can habituate the capitaliza tion rate, calculated by dividing the net operating income by the appraisal value. The capitalization rate is the rate of return on investment, which is commonly used by investors to determine profitability.The first analysis was conducted in order to determine if there is a dissimilarity of capitalization rate amid CASBEE certified buildings (green buildings) and non-certified buildings (conventional buildings). Table 2 represents basic statistical information such as sample size, mean, standard deviations, and standard error mean for both the dataset.The test statistic of the test of the difference between two population means depends on whether or not this hypothesis is rejected. Since this output, the result shows that p-value 0.052 significance level 0.05, this hypothesis cannot be rejected. Therefore, we can conclude that the populations experience equal variances.Hypothesis Ho the population means of the two groups are equal.