From Efficiency to Excess: Understanding Energy Usage in Green-Certified Homes

Abstract

Abstract Green building certification is critical for reducing carbon emissions in the real estate sector, which accounts for over one-third of the global carbon output. Analysing nationwide account-level water consumption data in Singapore with staggered difference-in-differences regressions, we find an unexpected 3.3% increase in household water consumption for retrofitted residential buildings post-certification. Similar increase is observed for household electricity consumption using block-level data. The increased consumption is unlikely a rebound effect given the lack of household-level efficiency improvements, instead it is attributable to an increase in post-certification house price. The increase in water consumption for household is five-times the reduction for common areas with mandated efficiency improvements. We highlight the importance of enhancing household-level efficiency and implementing stringent certification criteria in offsetting the increase in utility consumption, which is particularly crucial with the rapid proliferation of green buildings around the world.