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Book part
Publication date: 25 April 2022

Nadira Binti Ahzahar, Siti Zubaidah Binti Hashim, Intan Bayani Bin Zakaria, Norehan Norlida Mohd Noor and Nur Anis Bt Abdul Rahman

Malaysia is still very much lacking behind in green building developments as compared to other countries such as Australia, Japan, and Singapore. Nevertheless, in order to

Abstract

Malaysia is still very much lacking behind in green building developments as compared to other countries such as Australia, Japan, and Singapore. Nevertheless, in order to strengthen the development of green building in Malaysia, government has provided and offers several initiatives to the construction key players in implementing green building such as investment tax allowance for the purchase of green technology equipment and income tax exemption on the use of green technology services and system, etc. Despite of all the incentives introduce, the implementation of green building construction still does not boast as expected and still relatively low. Therefore, this study will identify barriers, issues, and challenges faced by construction key players in implementing green building concepts especially related to green building incentives in their project. The opinions and views of related parties in building industry were obtained from structured interviews and questionnaires to key personnel in construction industry to give a clearer picture of the current situation. This study is succeeded in identifying the barriers and challenges, which mainly categorised into financial incentives, fiscal incentives, and structural incentives. The main issues identified are excessive cost of construction, tax exemption is limited and only for qualified person and legislative challenges. Nonetheless, this study also suggests various ways to overcome the barriers in promoting green building concept in Malaysia towards greener environment.

Details

Sustainability Management Strategies and Impact in Developing Countries
Type: Book
ISBN: 978-1-80262-450-2

Keywords

Book part
Publication date: 25 April 2022

Siti Zubaidah Binti Hashim, Nadira Binti Ahzahar, Intan Bayani Bin Zakaria and Norehan Norlida Mohd Noor

Green building is an outcome of a design that focuses on increasing the efficiency of resources use energy and national environment. A variety of assessment programmes were

Abstract

Green building is an outcome of a design that focuses on increasing the efficiency of resources use energy and national environment. A variety of assessment programmes were developed, such as green building incentive (GBI) had been implemented in Malaysia as a strong indication for the key player in the construction industry to use the opportunity for their companies by embracing the idea of green building focussing on renewable energies, energy conservation, green building, waste management, and support service. However, the current situation reveals that the incentives were not effective enough to encourage the key players to apply the green building concept in their development. The purpose of this research is to produce a new parameter of GBIs for construction key players in Malaysia. The participants of this research were among the implementer and policy maker in helping to produce new parameter on green building incentives in Malaysia. The significant of this new parameter is to provide some guidance to the government in improving and strengthen the prior incentive, hence increase the participation of key building players in green building development in Malaysia. Apart from that, the green incentives are considered to be valuable tools in generating interest, in creating a motive for the adoption of green building practices over conventional practices and in eliminating knowledge gaps.

Details

Sustainability Management Strategies and Impact in Developing Countries
Type: Book
ISBN: 978-1-80262-450-2

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Article
Publication date: 19 February 2024

Chunmei Fan and Xiaoyue Li

This study reveals the green building development path and analyzes the optimal government subsidy equilibrium through evolutionary game theory and numerical simulation. This was…

Abstract

Purpose

This study reveals the green building development path and analyzes the optimal government subsidy equilibrium through evolutionary game theory and numerical simulation. This was done to explore the feasible measures and optimal incentives to achieve higher levels of green building in China.

Design/methodology/approach

First, the practice of green building in China was analyzed, and the specific influencing factors and incentive measures for green building development were extracted. Second, China-specific evolutionary game models were constructed between developers and homebuyers under the market regulation and government incentive mechanism scenarios, and the evolutionary paths were analyzed. Finally, real-case numerical simulations were conducted, subsidy impacts were mainly analyzed and optimal subsidy equilibriums were solved.

Findings

(1) Simultaneously subsidizing developers and homebuyers proved to be the most effective measure to promote the sustainability of green buildings. (2) The sensitivity of developers and homebuyers to subsidies varied across scenarios, and the optimal subsidy level diminished marginally as building greenness and public awareness increased. (3) The optimal subsidy level for developers was intricately tied to the building greenness benchmark. A higher benchmark intensified the developer’s responsiveness to losses, at which point increasing subsidies were justified. Conversely, a reduction in subsidy might have been appropriate when the benchmark was set at a lower level.

Practical implications

The expeditious advancement of green buildings holds paramount importance for the high-quality development of the construction industry. Nevertheless, the pace of green building expansion in China has experienced a recent deceleration. Drawing insights from the practices of green building in China, the exploration of viable strategies and the determination of optimal government subsidies stand as imperative initiatives. These endeavors aim to propel the acceleration of green building proliferation and materialize high-quality development at the earliest juncture possible.

Originality/value

The model is grounded in China’s green building practices, which makes the conclusions drawn more specific. Furthermore, research results provide practical references for governments to formulate green building incentive policies.

Details

Engineering, Construction and Architectural Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0969-9988

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Article
Publication date: 1 June 2023

Eric Kwame Simpeh and John Julian Smallwood

The green building (GB) market is maturing after years of practice; therefore, incentives for promoting GB should be adapted to reflect the market transformation. Adapting…

Abstract

Purpose

The green building (GB) market is maturing after years of practice; therefore, incentives for promoting GB should be adapted to reflect the market transformation. Adapting incentives can positively influence stakeholders' motives, which in turn change stakeholders' behavioural intention towards GBs. Hence, this study aims to examine the parameters influencing the decision to adopt GB and to ascertain how incentive mechanisms promote the uptake of GB in South Africa.

Design/methodology/approach

Using a scoping literature review and a sequential mixed research method, primary data were acquired from GB experts in four South African provinces. In analysing the quantitative data, the factors were ranked hierarchically using the mean ranking technique and factor analysis was computed to identify the underlying GB incentives. The qualitative data were analysed using content analysis.

Findings

The results indicate that incentive payment from a utility energy efficiency programme, rebates and discounts relating to environmentally friendly materials and products and providing grants to homeowners and developers to go towards certification were the most essential monetary incentives for promoting GB. In the category of non-monetary incentives, recognition of consultant team members and developers and free marketing/good publicity were the most important incentives. The incentive mechanisms were subsequently categorised as “Economic incentives” and “Reward scheme and technical support”.

Research limitations/implications

This study was confined to four metropolitan areas in South Africa. Nevertheless, the outcomes have practical implications for GB projects in general and may serve as a good reference for other provinces in South Africa.

Originality/value

The findings of the study are a valuable resource for stakeholders such as the government, municipal assemblies, professional bodies and the Green Building Council of South Africa (GBCSA) in developing effective incentive mechanisms to promote GB adoption. This study adds to the body of knowledge relevant to GB incentivisation in South Africa.

Details

Open House International, vol. 49 no. 2
Type: Research Article
ISSN: 0168-2601

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Article
Publication date: 15 February 2019

Raufdeen Rameezdeen, Jian Zuo, Jorge Ochoa Paniagua, Anthony Wood and Phuong Do

A green lease incorporates sustainability practices to reduce a building’s negative impact on the environment. Facilities managers play an important role in ensuring these best…

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Abstract

Purpose

A green lease incorporates sustainability practices to reduce a building’s negative impact on the environment. Facilities managers play an important role in ensuring these best practices are implemented during the operational stage of a building; however, green leasing is an under-researched area in the emerging field of sustainable facilities management (SFM). This paper aims to investigate the common barriers encountered in ensuring environmental performance when a green lease agreement is in operation between a landlord and tenant.

Design/methodology/approach

This research was conducted in three stages using the principal-agent problem as the theoretical foundation for data collection. Stages 1 and 2 used semi-structured interviews to collect data with policy/corporate-level professionals, landlord and facilities management representatives who have considerable experience in green leases. Stage 3 used document reviews based on summative content analysis to further evaluate the extent of the contextual use of green leasing concepts as used within the facilities management community.

Findings

The study confirmed a strong incentive gap and information asymmetry between the landlord and facilities manager, forming a typical double principal-agent problem when the split incentives between the landlord and tenants are also taken into consideration, which results in agents acting on their own self-interest rather than the interests of the principal. Goal alignment is found to be key for the successful operation and management of a building throughout its life; when present, these goal conflicts can lead to disharmony between the parties to the contract.

Research limitations/implications

The study proposes a few practical measures to close the gaps in incentive and information asymmetry that create the principal-agent problem, while providing recommendations to the facilities management professional community. These recommendations could be included in future revisions of the SFM guidelines or code of practices used by the industry. Although this study exposed a rather neglected area of the facilities manager’s role in green leases, the findings are limited by the relatively small sample size used for the interviews.

Originality/value

This study contributes to the SFM body of knowledge from a green lease perspective, and the theoretical framework in the double principal-agent problem introduced in the study could be used in future research endeavours.

Details

Facilities, vol. 37 no. 9/10
Type: Research Article
ISSN: 0263-2772

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Article
Publication date: 11 March 2020

Kofi Agyekum, Emmanuel Adinyira and Godslove Ampratwum

Sustainability has become a topical issue in many countries, with emphasis on green buildings. Though Ghana has recently adopted green buildings, there is lack of its speedy…

Abstract

Purpose

Sustainability has become a topical issue in many countries, with emphasis on green buildings. Though Ghana has recently adopted green buildings, there is lack of its speedy implementation. There is little literature on the adoption of green certification of buildings, especially in a developing country like Ghana. The purpose of this paper is to identify the factors that drive the adoption of green certification of buildings in Ghana.

Design/methodology/approach

The study adopts face-to-face and telephone interviews, using a semi-structured interview guide among ten built environment professionals. Qualitative responses to the interview are thematically analysed using Nvivo 11 Pro analysis application software.

Findings

The findings suggest that “observability of the benefits of green certified buildings”, “commitment of Government to green building initiatives”, “incorporating green certification of buildings into the code of practice of professional bodies”, “green building certification incentives”, “public acknowledgement of the green building concept”, “policies and regulations to enforce the adoption of the concept” and “effective communication and source of information on the concept” are the factors that drive the adoption of green certification of buildings in Ghana.

Originality/value

The paper contributes to the understanding of the factors that drive the adoption of green building certification in Ghana. With these findings, stakeholders and industry practitioners can make informed decisions regarding how they can put in place strategies to ensure the effective adoption of green certification of buildings. Though this study was conducted within the context of Ghana, its findings and implications can be useful to policy makers, stakeholders and practitioners in other developing countries.

Details

Smart and Sustainable Built Environment, vol. 9 no. 4
Type: Research Article
ISSN: 2046-6099

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Article
Publication date: 4 July 2022

Genell Wells Ebbini and Adel Al-Assaf

The researchers analyzed factors affecting the adoption of the Leadership in Energy and Environmental Design (LEED) green-building certification system in Jordan, including…

Abstract

Purpose

The researchers analyzed factors affecting the adoption of the Leadership in Energy and Environmental Design (LEED) green-building certification system in Jordan, including financial performance of certified projects along with broader barriers that may impact developers’ interest in LEED.

Design/methodology/approach

The authors first reviewed online data for all LEED registered and certified projects in Jordan, recruited LEED-certified project stakeholders, collected documents related to LEED projects and conducted LEED category credit summaries, financial cost-benefit analyses and spot-checking reported values in local markets. The authors then visited projects sites and interviewed various project stakeholders to understand better stakeholders' decision-making processes concerning LEED and relevant factors (financial, branding, cultural, political, etc.).

Findings

Obtaining LEED certification in Jordan was financially feasible as evinced in both the quantitative analysis and interviews. However, the authors found that there was very limited interest in LEED among Jordanian developers. Barriers included widespread cynicism toward green building concepts as well as a lack of local expertise in installing and maintaining green technologies. To overcome these barriers, the authors recommend that green building initiatives place a greater emphasis on education and public-promotion activities.

Research limitations/implications

The research data were limited to projects that had successfully achieved LEED certification. Broader qualitative research conducted across the Jordanian building community could provide additional insights, but such an investigation is beyond the scope of the current study.

Originality/value

The complexity of adapting a Western green building standard (LEED) to a non-Western context is discussed in detail. The findings suggest that understanding regional development challenges, local markets and cultural differences is vital for successfully implementing green building certification systems.

Details

Archnet-IJAR: International Journal of Architectural Research, vol. 17 no. 4
Type: Research Article
ISSN: 2631-6862

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Article
Publication date: 29 July 2014

Billie Ann Brotman

The purpose of this paper is to address the apparent slow acceptance on the part of developers located in the USA to seek green certifications. If green-certified construction…

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Abstract

Purpose

The purpose of this paper is to address the apparent slow acceptance on the part of developers located in the USA to seek green certifications. If green-certified construction costs more than non-green construction, then is there a financial reason for not seeking a green rating. Do green buildings perform better than non-green buildings financially? The paper develops and presents a discounted present value model for doing a cost-benefit analysis for building green. This model enables an investor to determine the feasibility of constructing a new green-certified building instead of a conventional non-green building. Non-green buildings are not certified by a rating agency such as Leadership in Energy and Environmental Design (LEED), Energy Star or Building Research Establishment Environmental Assessment Method (BREEAM). Real estate permits are granted by local municipalities in the USA. This means that local government mandates requiring green construction that significantly adds to the initial cost of a project could have the unintended result of encouraging new non-green construction just outside their municipal boundaries.

Design/methodology/approach

The paper collects publically available research data for office buildings located in the USA, and inputs this information into an income statement. It tests the hypothesis: is green-certified construction a financially feasible choice for an investor? An incremental approach using a 15-year holding period is presented. This time period takes into account equipment wear and tear. Heating/cooling systems and other green-technologically based operating systems have a limited life and do not last for 30 or 40 years. They are likely to need replacement after 15 years have lapsed.

Findings

The negative net present value (NPV) results and high payback periods indicate that increased rents for green construction, a tax credit for the present value loss and/or property-tax reduction covering the shortfall is needed as an incentive to commercially build green. The implication of a negative NPV is that green office buildings will be built by government agencies where green is mandated, corporations that want a green image and benefit from this image, where local ordinances mandate green construction features and where local and federal tax incentives are available increasing a construction project's feasibility.

Research limitations/implications

The limitation of any cost-benefit study is that analytical models and/or data used to forecast energy and water consumption savings in green-certified buildings compared to conventional buildings can be inaccurate. Forecasting models can understate or overstate the actual savings realized from green construction especially in the long-term given the difficulty of predicting equipment wear and tear, net rents and energy costs. The modeled percentage cost associated with green new construction features could remain constant or grow through time. Tables I and II results assume energy and water expenses remain a constant percentage over the 15-year period. The agency costs associated with obtaining a LEED or BREEAM certification was not calculated as an upfront cost. Certification by LEED or BREEAM increases the upfront cost associated with building a green building.

Practical implications

The length of the payback period estimates coupled with negative NPV for green certified compared to non-green construction suggests that developers do not have an incentive to build green. Higher WACC rates would result in green-certified projects being less feasible to build.

Social implications

The LEED certification point system may need to be reviewed. Points are assigned for features that improve occupant satisfaction, but may have little impact on reducing energy usage.

Originality/value

A model is presented for determining whether green-certified construction is financially feasible. The model enables the investor to determine the size of a tax incentive that is needed to enable new green construction to be economically feasible to build. The higher the negative NPV the larger the income or property tax incentive or other financial incentives needed. Prior research studies compared green and non-green buildings, but did not compare the energy savings generated to the additional construction and upfront costs incurred using a discount rate. They assumed the energy savings justified the additional initial cost associated with building a new green certified.

Details

Journal of Property Investment & Finance, vol. 32 no. 5
Type: Research Article
ISSN: 1463-578X

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Article
Publication date: 11 June 2019

Kofi Agyekum, Emmanuel Adinyira, Bernard Baiden, Godslove Ampratwum and Daniel Duah

This paper aims to identify the key barriers to the adoption of green certification of buildings in Ghana.

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Abstract

Purpose

This paper aims to identify the key barriers to the adoption of green certification of buildings in Ghana.

Design/methodology/approach

The study adopts face-to-face and telephonic interviews with ten built environment professionals, using a semi-structured interview guide. Qualitative responses to the interview were thematically analysed using NVivo 11 Pro analysis application software.

Findings

The findings suggest that “lack of information on existing green buildings”, “lack of incentives”, “conservative nature of Ghanaians”, “lack of active government participation”, “inadequate human resource”, “lack of awareness of the benefits”, “cost and financing” and “lack of legal backing” are the eight key barriers that hinder the adoption of green certification of buildings.

Research limitations/implications

The research is limited to built environment professionals registered with their appropriate professional bodies. The findings cannot be generalized and extended to other developing countries that do not share similar characteristics and context with Ghana.

Practical implications

Practically, this study highlights, for the benefit of the construction industry and the government, the critical barriers to the adoption of green certification of buildings in Ghana. Identification of these barriers provides a pathway for the provision of pragmatic solutions towards the adoption of green buildings in Ghana.

Originality/value

Findings of the research make significant contribution to the debate on the barriers to the adoption of green certification of buildings. Four out of the eight barriers (inadequate awareness of the benefits of green certification of buildings, inadequate human resource, conservative nature of Ghanaian and lack of information on existing green buildings) identified are unique in the context of other related studies and advanced knowledge on the subject matter.

Details

Journal of Engineering, Design and Technology , vol. 17 no. 5
Type: Research Article
ISSN: 1726-0531

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Article
Publication date: 17 September 2019

Chukwuka Christian Ohueri, Wallace Imoudu Enegbuma and Hadina Habil

Green building development practices reduce carbon footprint and promote sustainability in the built environment. To foster green building construction in Malaysia, several…

Abstract

Purpose

Green building development practices reduce carbon footprint and promote sustainability in the built environment. To foster green building construction in Malaysia, several strategies and sustainability metrics like the Malaysian Carbon Reduction and Environmental Sustainability Tool (MyCREST) have been established. Yet, the implementation of green office building development in Sarawak still remains low. Therefore, the purpose of this paper is to develop MyCREST Embedded Framework (MEF) for enhancing the adoption of green office building construction in Sarawak.

Design/methodology/approach

To achieve the research aim, document analysis of the overarching MyCREST Reference Guide was conducted. Then, questionnaire was used to survey 120 green construction professionals in Kuching, the capital of Sarawak. Afterwards, data from the questionnaire was analyzed using Statistical Package for Social Science software version 22. As a result, the significant strategies for enhancing the adoption of green office building construction in Sarawak were identified, and ranked hierarchically using the Relative Importance Index.

Findings

The established significant strategies include: government policies and incentives, sustainable technological practices, defined process for executing green building projects and adequate information for the public. Moreover, this study recommends MyCREST as the suitable Green Building Assessment Tool for developing green office buildings in Sarawak due to its integration of carbon reduction strategies with sustainability indicators.

Research limitations/implications

This study is limited to Kuching; hence future study should be extended to other cities in Sarawak.

Originality/value

Based on the findings, the MEF is developed to enlighten the industry practitioners on the approaches that will elevate green office building development in Sarawak.

Details

Built Environment Project and Asset Management, vol. 10 no. 2
Type: Research Article
ISSN: 2044-124X

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