Abstract
Factors, such as split incentive, information asymmetry, opportunistic behavior, ill-informed users, and institutional transitions, etc., incur different levels of Transaction costs (TCs) and affect the stakeholders’ willingness to take part in building energy efficiency (BEE). A better understanding of the nature and structure of TCs is essential to improve the market mechanisms for BEE investment. It covers three dimensions of TCs: specific investment, frequency and uncertainty. The paper provides a framework to understand BEE barriers in general and the TCs concerns of stakeholders in particular. In-depth interviews questions are designed to be conducted with the real estate representatives and architects, using a case of Hong Kong, where real estate developers are chosen to be the study object as they are the initiative and dominate force. The study focuses on how to smooth BEE transactions and lessen TCs involved. It indicates that TCs are the key factors impeding BEE market penetration, and will provide references to design a governance structure as well as to design policy packages to promote BEE.
Highlights
Buildings account for 40% of global energy consumption and nearly one-third of global CO2 emissions Levine et al [1]
This study develops a methodology framework of the Transaction costs (TCs) theories to be tested in the real world interviews in an empirical study of Hong Kong
This study has adopted a holistic approach to studying the barriers to Building Energy Efficiency (BEE) investments and has focused on TCs in particular
Summary
Buildings account for 40% of global energy consumption and nearly one-third of global CO2 emissions Levine et al [1]. It is still true that only the large developers with superior financial resources can remain active in the sector Under such market situations, the key market players have little incentive to venture into the new business of green building. The situation calls for a thorough study focusing on how to smooth transactions for market stakeholders in energy-efficient development, with the aim of lessening the TCs involved in BEE transactions. The study does not focus on any particular type of building technology, but rather on how to marketize energy-efficient residential buildings to be more acceptable to market stakeholders It is to lessen the TCs due to the barriers to BEE and to propose policy packages .
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