Qian, Q K; Fan, K and Chan, E H W (2016) Regulatory incentives for green buildings: Gross floor area concessions. Building Research & Information, 44(5-6), pp. 675-693. ISSN 0961-3218
Abstract
Incentive schemes formed by regulatory or administrative instruments are measures to promote green building (GB) and increase the motivation of developers to meet higher standards. The hidden costs to different stakeholders during the GB transaction are often ignored. Understanding these hidden transaction costs (TCs) helps appraise the costs and benefits of GB and policy effectiveness. The example of a gross floor area (GFA) concession scheme is used systematically to explore and understand the fundamental issues of TCs' typology and chronology in the GB development process. The GFA concession scheme is a popular incentive due to its indirect compensation to developers by allowing additional floor area without expenditure by government to implement GBs. A TCs' framework is used critically to review and evaluate the costs and benefits of the GFA concession scheme. Its particular implementation in both Hong Kong and Singapore is explored. Hong Kong is used as a case study, complemented with in-depth expert interviews on GFA concession in Hong Kong. The key contribution is to establish the parameters for estimating the optimum GFA bonus that could both motivate various stakeholders and minimize the negative impacts on the built environment in future.;Incentive schemes formed by regulatory or administrative instruments are measures to promote green building (GB) and increase the motivation of developers to meet higher standards. The hidden costs to different stakeholders during the GB transaction are often ignored. Understanding these hidden transaction costs (TCs) helps appraise the costs and benefits of GB and policy effectiveness. The example of a gross floor area (GFA) concession scheme is used systematically to explore and understand the fundamental issues of TCs' typology and chronology in the GB development process. The GFA concession scheme is a popular incentive due to its indirect compensation to developers by allowing additional floor area without expenditure by government to implement GBs. A TCs' framework is used critically to review and evaluate the costs and benefits of the GFA concession scheme. Its particular implementation in both Hong Kong and Singapore is explored. Hong Kong is used as a case study, complemented with in-depth expert interviews on GFA concession in Hong Kong. The key contribution is to establish the parameters for estimating the optimum GFA bonus that could both motivate various stakeholders and minimize the negative impacts on the built environment in future.;Incentive schemes formed by regulatory or administrative instruments are measures to promote green building (GB) and increase the motivation of developers to meet higher standards. The hidden costs to different stakeholders during the GB transaction are often ignored. Understanding these hidden transaction costs (TCs) helps appraise the costs and benefits of GB and policy effectiveness. The example of a gross floor area (GFA) concession scheme is used systematically to explore and understand the fundamental issues of TCs' typology and chronology in the GB development process. The GFA concession scheme is a popular incentive due to its indirect compensation to developers by allowing additional floor area without expenditure by government to implement GBs. A TCs' framework is used critically to review and evaluate the costs and benefits of the GFA concession scheme. Its particular implementation in both Hong Kong and Singapore is explored. Hong Kong is used as a case study, complemented with in-depth expert interviews on GFA concession in Hong Kong. The key contribution is to establish the parameters for estimating the optimum GFA bonus that could both motivate various stakeholders and minimize the negative impacts on the built environment in future.;
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | density bonus; transaction costs; incentives; regulatory systems; concession scheme; green building; gross floor area; economic instruments; governance; environmental-policy; management; perspective; innovation; challenges; transaction costs; construction & building technology; investment; economics; developers; efficiency; correlation analysis; green buildings |
| Index terms: | transaction cost, governance, building technology, regulatory system, case study, chronology, interview, efficiency, Singapore, density, economic instruments, Hong Kong, motivation, correlation analysis, gross floor area, concession scheme, green building, effectiveness, built environment, estimating, compensation, implementation |
| Subjects: | design practice, performance management, Geography, building performance, infrastructure and transport systems, political science, financial analysis, statistical analysis, time analysis, data collection methods, contract type, business, engineering systems, dispute resolution, psychology, contractual arrangements, economic analysis, financial and cost management, analytical methods |
| Topics: | Design Practice, Legal Issues, Urban Studies, Human Resources, Quality Management, Time Control, Business Strategy, Cost Management, Geographical Context, Research Practice, Engineering Principles, Procurement, Governance |
| Descriptive scope: | 5 PCTEA |
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