Stimulating green construction by influencing the decision-making of main players

Abstract

Green buildings or Environmentally Friendly Buildings (EFBs) take into account conservation needs and use key resources more efficiently than conventional buildings. However, EFBs, often characterized by relatively high construction costs, may materialize benefits through long-term maintenance and energy savings. Therefore, it is essential to convince main players in the construction field, that investment in EFBs is justifiable. This paper explores factors influencing investment decisions of different interest groups – consumers, architects and building developers – in green building. We hypothesis that each interest group's different attitude towards EFBs may generate different responses to identical incentives. The study is based on internet panel and telephone surveys conducted in Israel. The findings reveals that requirements of building standards and improving professional image are main factors that affect architects’ willingness to design EFBs, while energy prices increase and striving for innovation are main forces behind developers' decisions to promote green construction. By contrast, potential energy and maintenance savings, and real estate values increase are main factors influencing consumers’ decisions to opt for EFBs, as opposed to a conventional one. We also find that greater familiarity of consumers with the green building concept increases their willingness to pay 30% more for EFBs.