Green Buildings for Post Carbon City: Determining Market Premium Using Spline Smoothing Semiparametric Method

In this paper a hedonic price function built through a semiparametric additive model was applied for the real estate market analysis of the central area of Reggio Calabria. Based on Penalized Spline functions, the semiparametric model aimed to detect and identified the existence of a market premium arising from the choice of sustainable interventions, in terms of higher real estate values. The objective of the research is to demonstrate how choosing sustainability, i.e. policies oriented to Green Buildings practices, besides mitigating energy consumption respecting the historical instance of buildings, are also able to generate economic impacts in terms of increased market value of the properties.