Developer’s willingness to construct green dwellings in China: factors and stimulating policies
Abstract
Green dwelling (GD) is a way to mitigate impacts of the building stock on environment and provide a better living condition for residences. However, the number of GDs is relatively small. Especially in China, GDs only account for less than 0.4% of the total buildings. It is directly due to the shortage of supply, which is influenced by the lack of willingness to develop. To stimulate the GD diffusion, the study applies structural equation model to analyse the factors in developers’ willingness to construct GDs, considering the inter-relationships and relative influences among factors. Further, it calculates the influence of each policy and policy subseries on developers’ willingness. It is showed that developers’ willingness is mostly influenced by their developing ability, followed by market development. Then comes government policy and corporate responsibility. In terms of stimulating policies on developers’ willingness, floor-to-area density award is of the biggest impact, followed by the green building requirement and interest rare. As to the policy subseries, mandatory requirements has larger effects on developers then voluntary incentives. Besides, in China, developers are more sensitive to financial incentives than non-financial ones. Accordingly, suggestions for policy making are proposed to stimulate developers to construct GDs.
Keyword : developer, green dwelling, willingness to construct, factor, stimulating policy, structural equation model
How to Cite
He, C., Wang, X., & Zhao, G. (2018). Developer’s willingness to construct green dwellings in China: factors and stimulating policies. Journal of Civil Engineering and Management, 24(5), 378-389. https://doi.org/10.3846/jcem.2018.5185
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Liu, H.; Li, J.; Sun, Y.; Wang, Y.; Li, W. 2014. Government incentives to promote the development of green building based on games theory, Advanced Materials Research 869–870: 381–384.
Liu, R.; Xu, Y. 2015. Comparison of international incentive policy of green building, in Proceedings of the 5th International Asia Conference on Industrial Engineering and Management Innovation (Iemi2014), 21 July 2015, Xi’an, China, 319–323. https://doi.org/10.2991/978-94-6239-100-0_58
Ma, H.; Wang, J. 2012. Green dwelling’s driving model based on multi-factor analysis, Science and Technology Management Research 6: 226–231.
Matisoff, D. C.; Noonan, D. S.; Flowers, M. E. 2016. Green buildings: Economics and policies, Review of Environmental Economics and Policy 10(2): 329–346. https://doi.org/10.1093/reep/rew009
Olubunmi, O. A.; Xia, P. B.; Skitmore, M. 2016. Green building incentives: A review, Renewable & Sustainable Energy Reviews 59: 1611–1621. https://doi.org/10.1016/j.rser.2016.01.028
Patel, C.; Chugan, P. K. 2013. Measuring awareness and preferences of real estate developers for green buildings over conventional buildings, in J. Aagja, A. K. Awasthi, S. Jain (Eds.). Consumer behaviour and emerging practices in marketing. Mumbai: Institute of Management, Nirma University, Himalaya Publishing House, 332–341.
Porter, M. E.; Kramer, M. R. 2006. The link between competitive advanyage and corporate social responsibility, Harvard Business Review 84(12): 78–92.
Prakash, A. 2000. Greening the firm: The politics of corporate environmentalism. Cambridge: Cambridge University Press. https://doi.org/10.1017/CBO9780511491863
Qian, Q. K.; Chan, E. H. W.; Khalid, A. 2015. Challenges in delivering green building projects: Unearthing the transaction costs (TCs), Sustainability 7(4): 3615–3636. https://doi.org/10.3390/su7043615
Sentman, S. D.; Percio, S. T. D.; Koerner, P. 2008. A climate for change: Green building policies, programs, and incentives, Journal of Green Building 3(2): 46–63. https://doi.org/10.3992/jgb.3.2.46
Sert, N. Y. 2012. Benefit perception about the understanding of corporate social responsibility in private sector in Turkey: Using web sites for announcing of corporate social responsibility activities, AJIT-e: Online Academic Journal of Information Technology 3(9): 23–34.
Shapiro, S. 2011. Code green: Is “greening” the building code the best approach to create a sustainable built environment?, Planning & Environmental Law 63(6): 3–12. https://doi.org/10.1080/15480755.2011.586282
Shazmin, S. A. A.; Sipan, I.; Sapri, M. 2016. Property tax assessment incentives for green building: A review, Renewable & Sustainable Energy Reviews 60: 536–548. https://doi.org/10.1016/j.rser.2016.01.081
Sweeney, J. 2006. How to measure corporate social responsibility, Eureka Street 16(6): 23–24.
Theunissen, R. 2016. Green building strategy, investment and change in the South African real estate industry. Pretoria: University of Pretoria.
Timperley, S. 2008. Corporate social responsibility indexes: Measure for measure. Hamilton: University of Waikato.
USEIA. 2010. International energy outlook 2010. U.S. Energy Information Administration, Office of Integrated Analysis and Forecasting, U.S. Department of Energy, Washington, DC.
Wang, X.; Liu, Y. 2014. Market dynamics and empirical analysis of developing green dwellings, Systems Engineering – Theory & Practice 34(9): 2274–2281.
Wang, X. W.; Liu, Y. S.; Hou, J. 2015. Strategy selection of supply chain management of green building based on government subsidies and consumers’ environmental preferences, in Proceedings of 3rd International Conference on Logistics, Informatics and Service Science, 20 August 2015, Reading, UK, 717–722. https://doi.org/10.1007/978-3-642-40660-7_107
Weston, R.; Gore, P. A., Jr. 2006. A brief guide to structural equation modeling, Counseling Psychologist 34(5): 719–751. https://doi.org/10.1177/0011000006286345
Windapo, A. O. 2014. Examination of green building drivers in the South African construction industry: Economics versus ecology, Sustainability 6(9): 6088–6106. https://doi.org/10.3390/su6096088
Wu, S. I.; Wu, Y. C. 2014. The influence of enterprisers’ green management awareness on green management strategy and organizational performance, International Journal of Quality & Reliability Management 31(4): 455–476. https://doi.org/10.1108/IJQRM-01-2013-0019
Wymer, W.; Polonsky, M. J. 2015. The limitations and potentialities of green marketing, Journal of Nonprofit & Public Sector Marketing 27(3): 239–262. https://doi.org/10.1080/10495142.2015.1053341
Xu, J.-z.; Qiu, E.-w. 2006. Green corporate culture, Commercial Research 10.
Xu, J.; Wang, Y.; Tao, Z. 2013. Rough approximation based strategy model between a green building developer and a contractor under a fuzzy environment, Knowledge-Based Systems 46: 54–68. https://doi.org/10.1016/j.knosys.2013.03.002
Yi, H.; Liu, Y. 2015. Green economy in China: Regional variations and policy drivers, Global Environmental Change 31: 11–19. https://doi.org/10.1016/j.gloenvcha.2014.12.001
Zhang, L.; Liu, H. 2013. A quantitative analysis of the premium of green residential market in China, Journal of Engineering Management 6: 107–111.
Zhang, X. 2015. Green real estate development in China: State of art and prospect agenda – A review, Renewable and Sustainable Energy Reviews 47: 1–13. https://doi.org/10.1016/j.rser.2015.03.012
Zhang, X. L.; Shen, L. Y.; Wu, Y. Z. 2011. Green strategy for gaining competitive advantage in housing development: a China study, Journal of Cleaner Production 19(2–3): 157–167. https://doi.org/10.1016/j.jclepro.2010.08.005
Zheng, S. Q.; Wu, J.; Kahn, M. E.; Deng, Y. H. 2012. The nascent market for “green” real estate in Beijing, European Economic Review 56(5): 974–984. https://doi.org/10.1016/j.euroecorev.2012.02.012
Zhou, Y. 2015. State power and environmental initiatives in China: Analyzing China’s green building program through an ecological modernization perspective, Geoforum 61: 1–12. https://doi.org/10.1016/j.geoforum.2015.02.002
Zuo, J.; Zhao, Z. Y. 2014. Green building research-current status and future agenda: A review, Renewable & Sustainable Energy Reviews 30: 271–281. https://doi.org/10.1016/j.rser.2013.10.021
Ajzen, I. 1985. From intentions to actions: A theory of planned behavior. New York, NY: Springer Berlin Heidelberg.
Ajzen, I. 2011. The theory of planned behaviour: Reactions and reflections, Psychology & Health 26(9): 1113–1127. https://doi.org/10.1080/08870446.2011.613995
Bentler, P. M.; Weeks, D. G. 1980. Linear structural equations with latent variables, Psychometrika 45(3): 289–308. https://doi.org/10.1007/BF02293905
Berens, G.; Riel, C. B. M. V.; Rekom, J. V. 2007. The CSR-quality trade-off: When can corporate social responsibility and corporate ability compensate each other?, Journal of Business Ethics 74(3): 233–252. https://doi.org/10.1007/s10551-006-9232-0
Carnoske, C.; Hoehner, C.; Ruthmann, N.; Frank, L.; Handy, S.; Hill, J.; Ryan, S.; Sallis, J.; Glanz, K.; Brownson, R. 2010. Developer and realtor perspectives on factors that influence development, sale, and perceived demand for activity-friendly communities, Journal of Physical Activity & Health 7: 48–59. https://doi.org/10.1123/jpah.7.s1.s48
Chegut, A.; Eichholtz, P.; Kok, N. 2014. Supply, demand and the value of green buildings, Urban Studies 51(1): 22–43. https://doi.org/10.1177/0042098013484526
China Real Estate Assessment Centre (CREAC). 2017. Comprehensive strength ranking report of developing enterprises in China. Report.
Choi, C. 2009. Removing market barriers to green development: Principles and action projects to promote widespread adoption of green development practices, Journal of Sustainable Real Estate 1: 107–138.
Choi, E. 2010. Green on buildings: The effects of municipal policy on green building designations in America’s central cities, Journal of Sustainable Real Estate 2: 1–20.
Deng, Y. H.; Wu, J. 2014. Economic returns to residential green building investment: The developers’ perspective, Regional Science and Urban Economics 47: 35–44. https://doi.org/10.1016/j.regsciurbeco.2013.09.015
Eichholtz, P.; Kok, N.; Quigley, J. M. 2010. Doing well by doing good? Green office buildings, American Economic Review 100(5): 2492–2509. https://doi.org/10.1257/aer.100.5.2492
Elias, E. M.; Lin, C. K. 2015. The empirical study of green buildings (residential) implementation: perspective of house developers, Procedia Environmental Sciences 28: 708–716. https://doi.org/10.1016/j.proenv.2015.07.083
Gabay, H.; Meir, I. A.; Schwartz, M.; Werzberger, E. 2014. Cost-benefit analysis of green buildings: An Israeli office buildings case study, Energy and Buildings 76: 558–564. https://doi.org/10.1016/j.enbuild.2014.02.027
Gou, Z.; Prasad, D.; Lau, S. S. Y. 2013. Are green buildings more satisfactory and comfortable?, Habitat International 39: 156–161. https://doi.org/10.1016/j.habitatint.2012.12.007
Gulen, H.; Ion, M. 2016. Policy uncertainty and corporate investment, The Review of Financial Studies 29(3): 523–564.
He, C.; Han, Q.; Bauke, V. D.; Zhao, G. 2017. Evaluation of sustainable land management in urban area: A case study of Shanghai, China, Ecological Indicators 80: 106–113. https://doi.org/10.1016/j.ecolind.2017.05.008
Hui, E. C. M.; Liang, C.; Wang, Z. Y.; Wang, Y. 2016. The roles of developer’s status and competitive intensity in presale pricing in a residential market: A study of the spatio-temporal model in Hangzhou, China, Urban Studies 53(6): 1203–1224. https://doi.org/10.1177/0042098015572317
Hwang, B. G.; Tan, J. S. 2012. Green building project management: obstacles and solutions for sustainable development, Sustainable Development 20(5): 335–349. https://doi.org/10.1002/sd.492
Kline, R.. 2016. Principles and practices of structural equation modeling. New York, NY: The Guilford Press.
Li, Y. Y.; Chen, P. H.; Chew, D. A. S.; Teo, C. C. 2014. Exploration of critical resources and capabilities of design firms for delivering green building projects: Empirical studies in Singapore, Habitat International 41: 229–235. https://doi.org/10.1016/j.habitatint.2013.08.008
Liu, H.; Li, J.; Sun, Y.; Wang, Y.; Li, W. 2014. Government incentives to promote the development of green building based on games theory, Advanced Materials Research 869–870: 381–384.
Liu, R.; Xu, Y. 2015. Comparison of international incentive policy of green building, in Proceedings of the 5th International Asia Conference on Industrial Engineering and Management Innovation (Iemi2014), 21 July 2015, Xi’an, China, 319–323. https://doi.org/10.2991/978-94-6239-100-0_58
Ma, H.; Wang, J. 2012. Green dwelling’s driving model based on multi-factor analysis, Science and Technology Management Research 6: 226–231.
Matisoff, D. C.; Noonan, D. S.; Flowers, M. E. 2016. Green buildings: Economics and policies, Review of Environmental Economics and Policy 10(2): 329–346. https://doi.org/10.1093/reep/rew009
Olubunmi, O. A.; Xia, P. B.; Skitmore, M. 2016. Green building incentives: A review, Renewable & Sustainable Energy Reviews 59: 1611–1621. https://doi.org/10.1016/j.rser.2016.01.028
Patel, C.; Chugan, P. K. 2013. Measuring awareness and preferences of real estate developers for green buildings over conventional buildings, in J. Aagja, A. K. Awasthi, S. Jain (Eds.). Consumer behaviour and emerging practices in marketing. Mumbai: Institute of Management, Nirma University, Himalaya Publishing House, 332–341.
Porter, M. E.; Kramer, M. R. 2006. The link between competitive advanyage and corporate social responsibility, Harvard Business Review 84(12): 78–92.
Prakash, A. 2000. Greening the firm: The politics of corporate environmentalism. Cambridge: Cambridge University Press. https://doi.org/10.1017/CBO9780511491863
Qian, Q. K.; Chan, E. H. W.; Khalid, A. 2015. Challenges in delivering green building projects: Unearthing the transaction costs (TCs), Sustainability 7(4): 3615–3636. https://doi.org/10.3390/su7043615
Sentman, S. D.; Percio, S. T. D.; Koerner, P. 2008. A climate for change: Green building policies, programs, and incentives, Journal of Green Building 3(2): 46–63. https://doi.org/10.3992/jgb.3.2.46
Sert, N. Y. 2012. Benefit perception about the understanding of corporate social responsibility in private sector in Turkey: Using web sites for announcing of corporate social responsibility activities, AJIT-e: Online Academic Journal of Information Technology 3(9): 23–34.
Shapiro, S. 2011. Code green: Is “greening” the building code the best approach to create a sustainable built environment?, Planning & Environmental Law 63(6): 3–12. https://doi.org/10.1080/15480755.2011.586282
Shazmin, S. A. A.; Sipan, I.; Sapri, M. 2016. Property tax assessment incentives for green building: A review, Renewable & Sustainable Energy Reviews 60: 536–548. https://doi.org/10.1016/j.rser.2016.01.081
Sweeney, J. 2006. How to measure corporate social responsibility, Eureka Street 16(6): 23–24.
Theunissen, R. 2016. Green building strategy, investment and change in the South African real estate industry. Pretoria: University of Pretoria.
Timperley, S. 2008. Corporate social responsibility indexes: Measure for measure. Hamilton: University of Waikato.
USEIA. 2010. International energy outlook 2010. U.S. Energy Information Administration, Office of Integrated Analysis and Forecasting, U.S. Department of Energy, Washington, DC.
Wang, X.; Liu, Y. 2014. Market dynamics and empirical analysis of developing green dwellings, Systems Engineering – Theory & Practice 34(9): 2274–2281.
Wang, X. W.; Liu, Y. S.; Hou, J. 2015. Strategy selection of supply chain management of green building based on government subsidies and consumers’ environmental preferences, in Proceedings of 3rd International Conference on Logistics, Informatics and Service Science, 20 August 2015, Reading, UK, 717–722. https://doi.org/10.1007/978-3-642-40660-7_107
Weston, R.; Gore, P. A., Jr. 2006. A brief guide to structural equation modeling, Counseling Psychologist 34(5): 719–751. https://doi.org/10.1177/0011000006286345
Windapo, A. O. 2014. Examination of green building drivers in the South African construction industry: Economics versus ecology, Sustainability 6(9): 6088–6106. https://doi.org/10.3390/su6096088
Wu, S. I.; Wu, Y. C. 2014. The influence of enterprisers’ green management awareness on green management strategy and organizational performance, International Journal of Quality & Reliability Management 31(4): 455–476. https://doi.org/10.1108/IJQRM-01-2013-0019
Wymer, W.; Polonsky, M. J. 2015. The limitations and potentialities of green marketing, Journal of Nonprofit & Public Sector Marketing 27(3): 239–262. https://doi.org/10.1080/10495142.2015.1053341
Xu, J.-z.; Qiu, E.-w. 2006. Green corporate culture, Commercial Research 10.
Xu, J.; Wang, Y.; Tao, Z. 2013. Rough approximation based strategy model between a green building developer and a contractor under a fuzzy environment, Knowledge-Based Systems 46: 54–68. https://doi.org/10.1016/j.knosys.2013.03.002
Yi, H.; Liu, Y. 2015. Green economy in China: Regional variations and policy drivers, Global Environmental Change 31: 11–19. https://doi.org/10.1016/j.gloenvcha.2014.12.001
Zhang, L.; Liu, H. 2013. A quantitative analysis of the premium of green residential market in China, Journal of Engineering Management 6: 107–111.
Zhang, X. 2015. Green real estate development in China: State of art and prospect agenda – A review, Renewable and Sustainable Energy Reviews 47: 1–13. https://doi.org/10.1016/j.rser.2015.03.012
Zhang, X. L.; Shen, L. Y.; Wu, Y. Z. 2011. Green strategy for gaining competitive advantage in housing development: a China study, Journal of Cleaner Production 19(2–3): 157–167. https://doi.org/10.1016/j.jclepro.2010.08.005
Zheng, S. Q.; Wu, J.; Kahn, M. E.; Deng, Y. H. 2012. The nascent market for “green” real estate in Beijing, European Economic Review 56(5): 974–984. https://doi.org/10.1016/j.euroecorev.2012.02.012
Zhou, Y. 2015. State power and environmental initiatives in China: Analyzing China’s green building program through an ecological modernization perspective, Geoforum 61: 1–12. https://doi.org/10.1016/j.geoforum.2015.02.002
Zuo, J.; Zhao, Z. Y. 2014. Green building research-current status and future agenda: A review, Renewable & Sustainable Energy Reviews 30: 271–281. https://doi.org/10.1016/j.rser.2013.10.021