The contribution of buildings to climate change has become widely acknowledged. On 3 December 2015, the United Nations Environment Programme (UNEP) held the first ‘buildings day’ at COP 21 (the UN Climate Change Conference) devoted to the decarbonization of the building stock.
Green building (GB) policies have been implemented to promote GB and address climate change. Most of the existing literature have studied the costs and benefits of developing GB, without considerations of GB policies’ impacts. This paper aims to study the costs and benefits of implementing GB policy from the developers’ perspective.
This paper applies cost–benefits analysis (CBA) and transaction cost (TC) theory to systematically evaluate the costs and benefits of implementing the green building economic incentives, with focused study on the Gross Floor Area (GFA) Concession Scheme in Hong Kong.