Transaction Cost and Agency Perspectives on Eco-Certification of Existing Buildings: A Study of Hong Kong
Eco-certification schemes are usually launched with various incentives provided by local governments to facilitate green building development and building energy retrofits. A number of barriers to building energy retrofitting have been identified in previous literature, while the barriers to the eco...
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| Format: | Article |
| Language: | English |
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MDPI AG
2021-10-01
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| Series: | Energies |
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| Online Access: | https://www.mdpi.com/1996-1073/14/19/6375 |
| _version_ | 1797516588102975488 |
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| author | Yung Yau Huiying (Cynthia) Hou Ka Chi Yip Queena Kun Qian |
| author_facet | Yung Yau Huiying (Cynthia) Hou Ka Chi Yip Queena Kun Qian |
| author_sort | Yung Yau |
| collection | DOAJ |
| description | Eco-certification schemes are usually launched with various incentives provided by local governments to facilitate green building development and building energy retrofits. A number of barriers to building energy retrofitting have been identified in previous literature, while the barriers to the eco-certification of existing buildings are under-researched. Drawing on a set of building data retrievable from the BEAM Society and other sources, we carried out an analysis and found the building energy retrofitting, as well as the certification process, were unwelcomed in multi-owned residential buildings. The identified shortfall is put forward from the perspectives of transaction cost theory and agency theory. The findings reveal that high transaction costs incurred during negotiations and coordination among a large number of co-owners within a typical apartment building can outweigh the benefits of retrofitting and eco-certification. Besides, the remuneration structure of third-party property management agents discourages agents from facilitating co-owners to initiate retrofitting. This study provides significant implications for policymakers to understand the concerns of building owners and managers over the decisions and the processes of both the building energy retrofits and eco-certification. The problems and barriers unveiled in this study will facilitate the refining of current energy efficiency policies and related incentives designs. |
| first_indexed | 2024-03-10T07:02:59Z |
| format | Article |
| id | doaj.art-93c941bd2cc14f95b5ed044312f81a40 |
| institution | Directory Open Access Journal |
| issn | 1996-1073 |
| language | English |
| last_indexed | 2024-03-10T07:02:59Z |
| publishDate | 2021-10-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Energies |
| spelling | doaj.art-93c941bd2cc14f95b5ed044312f81a402023-11-22T16:03:27ZengMDPI AGEnergies1996-10732021-10-011419637510.3390/en14196375Transaction Cost and Agency Perspectives on Eco-Certification of Existing Buildings: A Study of Hong KongYung Yau0Huiying (Cynthia) Hou1Ka Chi Yip2Queena Kun Qian3Department of Sociology and Social Policy, Institute of Policy Studies, Lingnan University, Hong Kong 999077, ChinaDepartment of Building Environment and Energy Engineering, The Hong Kong Polytechnic University, Hong Kong 999077, ChinaInstitute of Policy Studies, Lingnan University, Hong Kong 999077, ChinaFaculty of Architecture and the Built Environment, Delft University of Technology, 2628 BL Delft, The NetherlandsEco-certification schemes are usually launched with various incentives provided by local governments to facilitate green building development and building energy retrofits. A number of barriers to building energy retrofitting have been identified in previous literature, while the barriers to the eco-certification of existing buildings are under-researched. Drawing on a set of building data retrievable from the BEAM Society and other sources, we carried out an analysis and found the building energy retrofitting, as well as the certification process, were unwelcomed in multi-owned residential buildings. The identified shortfall is put forward from the perspectives of transaction cost theory and agency theory. The findings reveal that high transaction costs incurred during negotiations and coordination among a large number of co-owners within a typical apartment building can outweigh the benefits of retrofitting and eco-certification. Besides, the remuneration structure of third-party property management agents discourages agents from facilitating co-owners to initiate retrofitting. This study provides significant implications for policymakers to understand the concerns of building owners and managers over the decisions and the processes of both the building energy retrofits and eco-certification. The problems and barriers unveiled in this study will facilitate the refining of current energy efficiency policies and related incentives designs.https://www.mdpi.com/1996-1073/14/19/6375building energy performancebuilding energy retrofitsgreen building certificationtransaction costsagency theoryincentives |
| spellingShingle | Yung Yau Huiying (Cynthia) Hou Ka Chi Yip Queena Kun Qian Transaction Cost and Agency Perspectives on Eco-Certification of Existing Buildings: A Study of Hong Kong Energies building energy performance building energy retrofits green building certification transaction costs agency theory incentives |
| title | Transaction Cost and Agency Perspectives on Eco-Certification of Existing Buildings: A Study of Hong Kong |
| title_full | Transaction Cost and Agency Perspectives on Eco-Certification of Existing Buildings: A Study of Hong Kong |
| title_fullStr | Transaction Cost and Agency Perspectives on Eco-Certification of Existing Buildings: A Study of Hong Kong |
| title_full_unstemmed | Transaction Cost and Agency Perspectives on Eco-Certification of Existing Buildings: A Study of Hong Kong |
| title_short | Transaction Cost and Agency Perspectives on Eco-Certification of Existing Buildings: A Study of Hong Kong |
| title_sort | transaction cost and agency perspectives on eco certification of existing buildings a study of hong kong |
| topic | building energy performance building energy retrofits green building certification transaction costs agency theory incentives |
| url | https://www.mdpi.com/1996-1073/14/19/6375 |
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