Building Incentive Structure in the Context of Green Building Implementation: From the Local Government Perspective

Abstract

This paper aims to examine and establish the purpose of the building incentive structure to stimulate green building implementation in consideration of the low number of green buildings in developing countries, particularly in Indonesia. Based on a purposive sampling technique to select departmental heads and sectional heads from the local government of the capital city of Indonesia, self-administered questionnaire data were analyzed using partial least squares structural equation modeling (PLS-SEM). The research results suggest the following. (1) There is a significant and positive impact of the building incentive structure on green building implementation. In addition, (2) The “Sustainability in Green Building Concept” has the most positive influence on the internal building incentive structure, but the “Efficiency of Green Building” has the most positive influence on the external building incentive structure. Therefore, these practices should receive attention from government officers. Finally, (3) “Environmental Development” was found to have an inner effect on green building implementation, especially creating “Green Building Comfort,” because it tends to hamper the first step toward green building implementation, which is aesthetic green features selection and pollution number reduction. This work can be considered as the first empirical effort toward a better model of a green building incentive based on the local government perspective.