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Essays in Real Estate Research Band 17
Nico B. Rottke · Jan Mutl Hrsg.
Nicolas J. Seyler
Sustainability and
the Occupant
The Effects of Mindfulness and
Environmental Attitudes on Real
Estate User Behaviors
Essays in Real Estate Research
Volume 17
Series Editors
Nico B. Rottke, Frankfurt, Germany
Jan Mutl, Wiesbaden, Germany
Die Reihe „Essays in Real Estate Research“, herausgegeben von Profes-
sor Dr. Nico B. Rottke FRICS und Professor Jan Mutl, Ph.D. umfasst aktu-
elle Forschungsarbeiten der Promovenden der Lehrstühle und Professuren des
Real Estate Management Institutes der EBS Business School. Forschungs- und
Lehrschwerpunkte des Institutes bilden die interdisziplinären Aspekte der
Immobilientransaktion sowie die nachhaltige Wertschöpfungskette im Immo-
bilienlebenszyklus. Die Kapitalmärkte werden als essenzieller Bestandteil der
Entwicklung der Immobilienmärkte aufgefasst. Die in der Regel empirischen
Studien betrachten transaktions- und kapitalmarktnahe Themenbereiche aus dem
Blickwinkel der institutionellen Immobiliengewerbe- und -wohnungswirtschaft,
wie bspw. Finanzierung, Kapitalmarktstruktur, Investition, Risikomanagement,
Bewertung, Ökonomie oder Portfoliomanagement, aber auch angewandte The-
men wie Corporate Real Estate Management, Projektentwicklung oder Unter-
nehmensführung. Die ersten 11 Bände der Reihe erschienen bis 2014 auch im
Immobilien Manager Verlag, Köln.
The series “Essays in Real Estate Research”, published by Professor Dr. Nico B.
Rottke FRICS and Professor Jan Mutl, Ph.D., includes current research work of
doctoral students at the chairs and professorships of the Real Estate Management
Institute of EBS Business School. The research and teaching focus of the Institute
constitutes the interdisciplinary aspects of real estate transactions as well as the
sustainable value creation chain within the real estate life cycle. The capital mar-
kets are regarded as essential components of the development of the real estate
markets. The mostly empirical studies consider transactional as well as capital
market topicsfrom the point of view of the institutional commercial and residen-
tial real estate industry, such as finance, capital market structure, investment, risk
management, valuation, economics or portfolio management, but also applied
topics such as corporate real estate management, real estate development, or lea-
dership issues in the property industry. The first 11 volumes of the series appeared
up until 2014 in Immobilien Manager Publishing, Cologne, as well.
Sustainability and
the Occupant
The Effects of Mindfulness and
Environmental Attitudes on Real
Estate User Behaviors
With a Foreword by Professor Jan Mutl, PhD
Nicolas J. Seyler
Real Estate Management Institute (REMI)
EBS Universität für Wirtschaft und Recht
Wiesbaden, Germany
Doctoral Thesis, EBS Business School, EBS Universität für Wirtschaft und Recht,
Wiesbaden, Germany, 2019
Springer Gabler
© Springer Fachmedien Wiesbaden GmbH, part of Springer Nature 2020
This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part
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or information storage and retrieval, electronic adaptation, computer software, or by similar or
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The use of general descriptive names, registered names, trademarks, service marks, etc. in this
publication does not imply, even in the absence of a specific statement, that such names are exempt
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The publisher, the authors and the editors are safe to assume that the advice and information in this
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The registered company address is: Abraham-Lincoln-Str. 46, 65189 Wiesbaden, Germany
In loving memory of my father
Foreword
The environmental impact of buildings is without doubt an important aspect of
current academic as well as policy debates. The energy usage of real estate is one
of the main sources of carbon emissions, on par with the transportation sector.
Much of the practical and academic discussion has been focused on improving
the technical characteristics of the build environment and has mostly ignored the
role the occupants play in determining the outcome. By focusing on this over-
looked component, the present work thus fills an important gap in the discus-
sions.
The author investigates the role that humans play in determining the envi-
ronmental impact of real estate usage and in doing so he makes a new and novel
contribution to the academic research on the sustainability and real estate. First
of all, he brings the concept of mindfulness from psychological research into the
picture. He shows that this characteristic of the occupant is a significant factor in
determining the user behavior and hence plays an important role in environmen-
tal impact of buildings. This aspect has not yet been considered in the literature.
Secondly, he develops measurement items and scales for environmental real
estate user behaviours. This has only partially been developed in the literature
and the present contribution consists of a combining the different approaches in
the literature into a comprehensive one. Finally, structural equation models are
estimated by means of partial least squares showing the concept of mindfulness
to be relevant for occupant behaviors.
As a result, the present work provides a basis required to comprehend the
complex nature of user behaviors. As such, it becomes an interesting starting
point for further research in this nascent field dealing with the occupants instead
of buildings and I am convinced that it will be well received both in the academ-
ia and the industry.
Professor Jan Mutl, PhD
Acknowledgements
First of all, I would like to express my sincere gratitude to my advisor Prof. Jan
Mutl, PhD for his openness to my research ideas as well as his continuous per-
sonal and professional guidance throughout my dissertation project. Further-
more, I am obliged to Prof. Dr. Julia Hartmann, who accepted being my co-
advisor without hesitation and encouraged me with valuable ideas and construc-
tive feedback.
My sincere thanks also go to my fellow doctoral candidates from the Real
Estate Management Institute (REMI), who not only accompanied me throughout
my time at EBS University but also enriched this dissertation through a myriad
of academic discussions. It was a pleasure to work with you over the last years.
Most importantly, I would like to thank my parents for laying the foundation for
my personal and professional growth. Without their dedication and support, I
would not have been able to follow my aspirations and dreams. In particular, I
am to recognize my mother, who encouraged me in all my endeavors and deci-
sions.
Last but by no means least, I would like to thank my loving and patient fu-
ture wife Charlotte for unequivocally supporting me whenever I needed it and
our dog Sam for always cheering me up.
Nicolas J. Seyler
Table of Contents
Foreword ......................................................................................................... VII
Acknowledgements ........................................................................................... IX
List of Figures ................................................................................................ XIII
List of Tables ....................................................................................................XV
List of Abbreviations ..................................................................................... XIX
1 Introduction ................................................................................................. 1
1.1 Problem Description ............................................................................. 1
1.2 Course of Investigation ......................................................................... 3
2 Megatrends and Sustainability .................................................................. 5
2.1 Megatrends and Their Global Impact.................................................... 5
2.2 The Need for Sustainability ................................................................ 12
3 Sustainability and User Behavior ............................................................ 25
3.1 Real Estate User Behavior .................................................................. 25
3.2 Behavior and Change .......................................................................... 42
3.3 Mindfulness and Behavior .................................................................. 61
4 Studies on the Effects of Mindfulness on Real Estate User
Behaviors ................................................................................................... 71
4.1 Objective and Overall Procedure ........................................................ 71
4.2 Conceptual Framework ....................................................................... 72
4.3 Conceptualization, Operationalization, and Hypothesized
Relationship of the Constructs ............................................................ 74
4.4 Research Design and Methodology .................................................... 95
4.5 The Effects of Mindfulness on Curtailment and Efficiency
EREUB at Home ............................................................................... 115
4.6 The Effects of Mindfulness on Curtailment EREUB at Home
and at the Office ................................................................................ 135
4.7 Limitations ........................................................................................ 156
5 Conclusion and Outlook ......................................................................... 159
List of References ............................................................................................ 165
Appendix.......................................................................................................... 197
Appendix 1: Common Method Bias Test Results ..................................... 197
Appendix 2: PLS-CTA Results for EREUB ............................................. 200
Appendix 3: Overview of the Indicator Data Sets .................................... 203
Appendix 4: Demographic Sample Characteristics .................................. 207
Appendix 5: Collinearity Assessment of Formative Models .................... 211
XII Table of Contents
0 Introduction
1 Introduction
presume the saving potentials to be comparable or even higher than that of tech-
nological efficiency measures (e.g. Masoso & Grobler, 2010; Anderson et al.,
2015). Thereby, behavioral change can be applied to both new and existing
buildings and comes largely at no cost.
Academics have been engaged in studying occupant behaviors ever since
the energy crisis in the 1970s. Yet, occupant behaviors and the encouragement of
more environmental behaviors have proven to be a complex subject, which has
been and still is puzzling researchers (Martiskainen, 2007). Individuals are in-
consistent in their environmental behaviors. Extant studies have not come to
consistent and comprehensive findings, since causal factors may vary greatly
across environmental behaviors (Stern, 2000). Moreover, recent anecdotal find-
ings suggest that many occupant behaviors are undertaken unconsciously so that
occupants often fail to adopt more environmental real estate user behaviors
(EREUB) despite being highly effective. Hence, a key question remains how to
make people use less.
Against the background of the research gaps identified, the main objective
of this dissertation is twofold: (1) Examine the influence of real estate user be-
haviors on building performance and quantify behavioral saving potentials; (2)
Analyze the effects of potential antecedents on EREUB. Apart from the notion
that real estate user behaviors matter, only few research efforts have shown what
impact user behaviors actually have on building performance. Furthermore, this
dissertation attempts to answer ongoing calls for research regarding the drivers
of and their effects on EREUB. The following research questions provide guid-
ance to this dissertation:
1) What is the impact of real estate user behaviors on building perfor-
mance?
a. How can the impact be highlighted?
b. Has the impact changed over time?
c. How much behavioral saving potential exists?
d. Which behaviors impact building performance?
2) What are the effects of potential antecedents on EREUB?
a. What are the drivers for EREUB?
b. Does mindfulness affect behaviors?
c. Do the effects differ for curtailment and efficiency behaviors?
d. Do individuals behave differently at home and at the office?
This work contributes to research and practice in several ways. Against the
background of increasingly efficient and better designed buildings, it highlights
whether occupants still have a substantial impact on building performance. By
means of an extensive literature review, it is pointed out that the user still is
among the most critical variables in the efficiency equation. Moreover, this work
1.2 Course of Investigation 3
This dissertation is divided into three main parts, namely section two, three, and
four. The second section establishes a common understanding how megatrends
impact our lives. Thereby, the presented megatrends, namely demographic
change, urbanization, globalization, resource scarcity, and climate change, call
for an urgent need for change, the need for sustainable development. After defin-
ing sustainability, the interconnectedness with the real estate industry is high-
lighted. Subsequently, the principle of sustainability will be elaborated for build-
ings. A short literature review highlights various advantages of sustainable
buildings based on the three dimensions of sustainability.
The third section then turns to the real estate user, the impact of his or her
behaviors on building performance, and how behaviors can be changed. A thor-
ough literature review contrasts the effects of user behaviors over the last 40
years. Three approaches highlight the importance of real estate user behaviors.
First, the effects of user behaviors are compared based on studies for similar or
identical buildings. Second, the impact of user behaviors are shown based on
studies about planned and actual building performance. Third, the relevance of
user behaviors is demonstrated based on studies focusing on determining varia-
bles for building performance. In a next step, the underlying causes for the huge
impact of user behaviors are analyzed. The review points out that the goal of
sustainable development in the building sector cannot be solely reached through
efficiency measures and, thus, calls for EREUB. Following the definition of
EREUB, behavioral saving potentials are then quantified.
4 1 Introduction
0 Year
1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015
2.1.2 Urbanization
The world’s rural-urban balance of population has shifted irreversibly towards
the urban areas. This rural-to-urban migration is widely known under the term
“urbanization” (Crossette et al., 2011, p.77). In 1950, less than 30 percent of the
world population resided in cities as well as urban areas and, ever since, the
number is increasing steadily. At the moment, already more than 50 percent of
the world population lives urban areas and the share will further increase to ap-
proximately two thirds within the next 33 years (Crossette et al., 2011, p.ii; UN
DESA PD, 2015b, p.1-7). Between 2015 and 2050, the world population is ex-
pected to increase by 2.4 billion (UN DESA PD, 2015a, p.18 ff.). At the same
time, the urban population is expected to grow at least by 2.4 billion (UN DESA
PD, 2015b, p.217). Hence, over the next decades, urban areas will absorb most
of the population growth while simultaneously attracting further population from
rural areas (UN DESA PD, 2012, p.1).
Thereby, different growth figures for rural-to-urban migration are expected,
since urban trends do not happen uniformly (Crossette et al., 2011, p.78). One
underlying reason for this circumstance is that more developed regions have
already reached high levels of urbanization. A significant diversity for urbaniza-
tion degrees can be observed for different regions. Northern America with 82
percent, Latin America with 80 percent, and Europe with 73 percent of the popu-
lation living in urban areas are among the most urbanized regions, as of 2014.
2.1 Megatrends and Their Global Impact 7
On the contrary, in the same year, Asia and Africa had urbanization levels of 48
percent and 40 percent, respectively (UN DESA PD, 2015b, p.197 ff.).
Therefore, the development of urbanization levels differs significantly be-
tween more developed and less developed countries (see Figure 2). The degree
of urbanization will increase especially in less developed countries. By 2050,
63.4 percent of the population in less developed regions will live in urban areas,
compared to 49.0 percent in 2015. Nevertheless, urbanization will have further
impacts on more developed countries, as well. In these regions the share of urban
dwellers will rise from 78.3 percent in 2015 to 85.4 percent in 2050 (UN DESA
PD, 2015b, p.205). The major challenge as result of urbanization is to grow in-
side the existing area of a city, since cities have neither been built nor planned
for these urbanization levels (Crossette et al., 2011, p.88).
World Population
in Billion
6
More Developed Regions - Urban Population
Less Developed Regions - Urban Population
5
More Developed Regions - Rural Population
4 Less Developed Regions - Rural Population
0 Year
1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050
Figure 2: Urban and Rural Population of More Developed and Less Developed Countries from
1950-2050
Source: Adapted from UN DESA PD (2015b)
2.1.3 Globalization
The concept of globalization is broad and can be seen from various points of
view. Over the past decades, for instance, tourism has increased tremendously. In
addition, the share of persons speaking at least two languages has been increas-
ing steadily. Furthermore, consumers are able to buy exotic or seasonal produce
throughout the year (bnp, 2017). Most commonly, however, globalization is
associated with cross-border trade activities of goods and services, multinational
activity of companies, the reduction of trade barriers, as well as immigration. As
8 2 Megatrends and Sustainability
World GDP in
Billion USD
80.000
70.000
60.000
50.000
40.000
30.000
20.000
10.000
0 Year
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015
23%
140%
19%
130% 14%
11%
120%
8%
110%
100%
90% Year
2010 2015 2020 2025 2030 2035 2040
Figure 4: Comparison of World Population Growth and World Energy Consumption Growth in
Percent (2010=100%)
Source: Adapted from UN DESA PD (2012), EIA (2013, p.9), EIA, (2016, p.7)
10 2 Megatrends and Sustainability
The aforementioned would not represent a major issue, if resources were in-
finitely available. However, resources as well as the earth’s biological capacity
are limited. By turning resources faster into waste than turning them back into
resources, humans deplete the foundation on which biodiversity and mankind
depends. The result of the excessive resource usage is a global ecological over-
shoot.
The earth’s biocapacity had already been reached in 1970. At the moment,
our ecological footprint would need the biological capacity equivalent to 1.6
earths (see Figure 5). The ecological footprint differs from country to country. If
everyone on earth lived the average American lifestyle, the biocapacity of five
earths would be needed currently (Crossette et al., 2011, p.94). Nevertheless, the
ecological footprint is expected to increase in the future. Thus, the issues related
to resource scarcity will further aggravate due to the prospects of ameliorating
living standards, increasing energy and resource consumption, as well as increas-
ing population figures. According to forecasts by the Global Footprint Network
(2014), humanity would need the biological capacity of three earths in 2050 in
order to suffice our consumption patterns if there will not be fundamental chang-
es.
Number of
Planet Earths
1,8 Ecologial Footprint 1961-2013
1,6 Biocapacity
1,4
1,2
0,8
0,6 Year
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015
cally started to influence the earth’s climate. The nowadays observed climate
change is a result of increasing concentrations of GHG. GHG consist primarily
of carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O). Without any
doubt, GHG emissions are a result of human activities. The usage of fossil fuels
and the change of land uses have increased carbon dioxide concentrations. Agri-
cultural activities have resulted in rising methane and nitrous oxide concentra-
tions (IPCC, 2007, p.2; Binkley & Ciochetti, 2010, p.70; IPCC, 2013, p.15).
Carbon dioxide is the most influential GHG as it contributes a share of over 75
percent to GHG (IPCC, 2014, p.123).
One of the underlying reasons for the ever increasing GHG emissions has
been and continues to be economic growth. Both, emissions per capita and GDP
per capita have shown a strong correlation (Stern, 2007, p.xi). Therefore, it is not
surprising that GHG concentrations are rising while economies have been grow-
ing worldwide since the industrial revolution. These concentrations by far exceed
pre-industrial levels, which have been determined from ice cores (IPCC, 2007,
p.2). Particularly over the last 50 years, GHG emissions have increased signifi-
cantly. Between 1960 and 2015, carbon dioxide levels have been rising substan-
tially (see Figure 6). Within this time frame, the world’s carbon dioxide emis-
sions have more than tripled. Whereas in 1960 approximately 9.4 million
Kilotons (kt) of carbon dioxide were emitted, the figure grew to over 36.2 mil-
lion kt in 2016 (Olivier et al., 2015, p.12; World Bank, 2017).
CO2 Emissions in
Million kt
40
35
30
25
20
15
10
0 Year
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015
The resulting climate change represents the most dangerous megatrend for
humanity, since it “threatens the basic elements of life for people around the
world” (Stern, 2007, p.vi) and the effects are irreversible (IPCC, 2013, p.28).
Large-scale disruptions in climate are an effect of the heat-trapping GHG over-
load in the atmosphere – and these effects are already noticeable today. An in-
crease of the global atmosphere and ocean temperature has been observed since
1950 and particularly strong in the last two decades (IPCC, 2013, p.5 ff.). Be-
tween 1996 and 2016, 18 of the 20 hottest years have been recorded. According
to data provided by the National Aeronautics and Space Administration (NASA),
2016 set a new global average surface temperature record for the third year in a
row. With 0.99 degrees Celsius global average surface temperature, the year
2016 was the warmest year ever since the beginning of recordkeeping in 1880
(GISTEMP Team, 2017). Similarly, the ocean temperature has increased. The
upper 75m of the ocean have warmed by 0.11 degrees Celsius per year over last
four decades. Furthermore, as result of the overall temperature increases, Green-
land and Antarctic ice sheets as well as glaciers worldwide have been shrinking
or losing mass, snow amounts have been decreasing, and the sea level has been
rising (IPCC, 2013, p.8 ff.).
The consequences of the aforementioned may lead to far-reaching environ-
mental and humanitarian crisis, as the effects of climate change jeopardize ac-
cess to food and water, public health, land usage, flora, and fauna. The melting
glaciers and ice will increase flood risk, particularly in coastal regions, and then
result in decreasing water supply. Due to increasing temperatures, crop yields
will decline, thereby seriously affecting global food production. Furthermore,
ecosystems will be harmed, as approximately 15 to 20 percent of species face
extinction if temperatures increase by two degrees Celsius. The chances of ex-
treme weather events as well as their intensity will increase considerably, which
could lead to more and more intense hurricanes and droughts, for instance. Addi-
tionally, expanding tropical weather conditions will promote the reach of infec-
tious diseases like malaria. Hot summers will lead to more heat strokes and
deaths, potentially (IPCC, 2007, p.89 ff.; Stern, 2007, p.v ff.; Riesbeck, 2010,
p.11 ff.; IPCC, 2013, p. 140 ff.).
The aforementioned megatrends have led to the rise of another megatrend, name-
ly sustainability. Although being a rather recent topic with worldwide public
coverage, the movement around sustainability has started decades ago with an
infamous book called “The Limits to Growth”. Thereby, Meadows et al. (1972)
pointed out an urgent need for change. The earth cannot support present rates of
2.2 The Need for Sustainability 13
population and economic growth. If status quo continues prospectively, the plan-
etary limits will be reached. Inevitably, this would lead to an ecological collapse
and a global economic breakdown. Their book popularized the whole debate
about sustainability by making society aware of environmental and societal is-
sues. Indeed, in years to come, the publication has given rise to a myriad of pub-
lic reports, conferences, debates, as well as organizations dealing with sustaina-
bility (Turner, 2008, p.397). The following section will briefly define the term
“sustainability”, highlight important implications for mankind, and establish the
connection to the real estate industry.
198. Writing
Related to calendar and mathematics in its origin was writing,
which passed out of the stage of pictographs and simple ideograms
only in the Mexican area. The Aztecs used the rebus method (§
130), but chiefly for proper names, as in tribute lists and the like. The
Mayas had gone farther. Their glyphs are highly worn down or
conventionalized pictures, true symbols; often indeed combinations
of symbols. They mostly remain illegible to us, and while they appear
to contain phonetic elements, these do not seem to be the dominant
constituents. The Maya writing thus also did not go beyond the
mixed or transitional stage. The Chibcha may have had a less
advanced system of similar type, though the fact that no remains of it
have survived argues against its having been of any considerable
development. The Peruvians did not write at all. They scarcely even
used simple pictography. Their records were wholly oral, fortified by
mnemonic devices known as quipus, series of knotted strings. These
were useful in keeping account of numbers, but could of course not
be read by any one but the knotter of the strings: a given knot might
stand equally for ten llamas, ten men, ten war clubs, or ten jars of
maize. The remainder of South America used no quipus, and while
occasional pictographs have been found on rocks, they seem to
have been less developed, as something customary, than among the
North American tribes. All such primitive carvings or paintings were
rather expressions of emotion over some event, concrete or spiritual,
intelligible to the maker of the carving and perhaps to his friends,
than records intended to be understood by strangers or future
generations.
Connected with the fact that the highest development of American
writing took place in southern Mexico, is another: it was only there
that books were produced. These were mostly ritualistic or
astrological, and were painted on long folded strips of maguey fiber
paper or deerskin. They were probably never numerous, and
intelligible chiefly to certain priests or officials.
201. Colombia
The Chibchas of Colombia, the intermediate member of the three-
linked Middle American chain, fell somewhat, but not very far, below
the Mexicans and Peruvians in their cultural accomplishments. Their
deficiency lay in their lack of specific developments. They do not
show a single cultural element of importance peculiar to themselves.
They chewed coca, slept in hammocks, sat on low chairs or stools;
but these are traits common to a large part of South America.
Consequently the absence or weak development of these traits in
Mexico is no indication of any superiority of the Chibchas as such.
The great bulk of Colombian culture was a substratum which
underlay the higher local developments of Mexico and Peru; and this
substratum—varied agriculture, temples, priesthood, political
organization—the Chibchas possessed without notable gaps.
Whatever elements flowed from Mexico to Peru or from Peru to
Mexico at either an early or a late period, therefore probably passed
through them. In isolated matters they may have added their
contribution. On the whole, though, their rôle must have been that of
sharers, recipients, and transmitters in the general Middle American
civilization.
203. Patagonia
Patagonia is par excellence the peripheral region of South
America, culturally as well as geographically. As regards civilization,
this is true in the highest degree at the extreme tip of the continent
about Tierra del Fuego. Many of the most widely spread South
American culture traits being lacking here, there is a curious
resemblance to the northerly tribes of North America.
Yet even this culturally disinherited area is not without a few local
developments of relatively high order. The most striking is the plank-
built canoe of the south Chilean archipelago. The skill to carpenter
such boats was exercised in only one other region in the
hemisphere; the Santa Barbara Islands of California. Curiously
enough the latter is also a district of comparatively backward culture.
In any event this built-up canoe of the rude people of the extreme
south contrasts strikingly with the lack of any real boats among the
advanced nations in the Andean area. The moral would seem to be
that it is speculative to base much theory or explanation on any
single culture trait.
Of other elements specific to the Patagonian region, there might
be mentioned coiled basketry (§ 104) and the bolas. This is a
hunting weapon of three stones attached to ropes swung so as to
wind around the neck or legs of game. Except at the extreme south,
Patagonian culture was profoundly modified by the introduction of
the horse, which soon after the arrival of the Spaniards multiplied on
the open plains. The horse enlarged the ability of the Patagonian
tribes to take game, especially in the Pampas in the north, increased
their wealth, and strengthened their warlike interests. The same
change occurred in the Chaco.