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. There are several forms of negative contributions that buildings make to climate change, but high on the list are embodied and operational energy demands, which largely depend on fossil fuels and result in greenhouse gas emissions.
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. The data of costs and benefits indicate how the GFA Concession Scheme motivates stakeholders and how much it benefits the built environment, which provides a solid foundation for the improvement of the GFA Concession Scheme.
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. It takes the Gross Floor Area (GFA) Concession, which is a popular policy and has been implemented in the US, Singapore and Hong Kong, as an example, to compare its implementation in three regions and analyze how it affects developers’ costs and benefits.