New evidence on the green building rent and price premium

This paper investigates the effect of voluntary eco-certification on the rental and sale prices of US commercial office properties. Hedonic and logistic regressions are used to test whether there are rental and sale price premiums for LEED and Energy Star certified buildings. The results of the hedonic analysis suggest that there is a rental premium of approximately 6% for LEED and Energy Star certification. A sale price premium of approximately 35% was found for 127 price observations involving LEED rated buildings and 31% for 662 buildings involving Energy Star rated buildings. When compared to samples of similar buildings identified by a binomial logistic regression for LEED-certified buildings, the existence of a rent and sales price premium is confirmed albeit with differences regarding the magnitude of the premium. Overall, the results of this study confirm that LEED and Energy Star buildings exhibit higher rental rates and sales prices per square foot controlling for a large number of location- and property-specific factors.

The long-term price-earnings ratio

price-earnings ratio;value premium;arbitrage trading rule;UK stock returns;contrarian investment Abstract:  The price-earnings effect has been thoroughly documented and is the subject of numerous academic studies. However, in existing research it has almost exclusively been calculated on the basis of the previous year's earnings. We show that the power of the effect has until now been seriously underestimated due to taking too short-term a view of earnings. Looking at all UK companies since 1975, using the traditional P/E ratio we find the difference in average annual returns between the value and glamour deciles to be 6%. This is similar to other authors' findings. We are able to almost double the value premium by calculating the P/E ratio using earnings averaged over the previous eight years.

Correlation between process cheese meltability determined by sensory analysis, computer vision method and Olson and Price test

The meltabilities of 14 process cheese samples were determined at 2 and 4 weeks after manufacture using sensory analysis, a computer vision method, and the Olson and Price test. Sensory analysis meltability correlated with both computer vision meltability (R-2 = 0.71, P < 0.001) and Olson and Price meltability (R-2 = 0.69, P < 0.001). There was a marked lack of correlation between the computer vision method and the Olson and Price test. This study showed that the Olson and Price test gave greater repeatability than the computer vision method. Results showed process cheese meltability decreased with increasing inorganic salt content and with lower moisture/fat ratios. There was very little evidence in this study to show that process cheese meltability changed between 2 and 4 weeks after manufacture..