Analysis of Economic Incentive Policies for Promoting Green Building Development in China

Abstract

In the process of creating a resource-saving and environmentally friendly society, promoting green buildings is emerging as a key objective of sustainable development strategies in China. This chapter focuses on policies with economic incentives for green buildings within a context of low-carbon sustainability. In introducing domestic and international green building coding systems and using data on 104 green building projects in China, we examine current green building economic incentives and local economic policies for selected case studies conducted in Suzhou and Shanghai. We find that total subsidies are sufficient for two-star green buildings but are insufficient for three-star green buildings at both the national and local levels. Barriers to the development of green building are also discussed. We also address our main question regarding why green building label designations are typically allocated at the design stage rather than at the operation stage. Policy recommendations are made to promote green building in China that invvolve improved integration of subsidy schemes, energy performance contracts (EPCs), carbon trading mechanisms, and carbon taxes based on our research results.