Optimal subsidy policy to promote building energy efficiency under uncertainty : the case for architectural design subsidies
Thesis: M.C.P., Massachusetts Institute of Technology, Department of Urban Studies and Planning, 2016.
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| Format: | Thesis |
| Language: | eng |
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Massachusetts Institute of Technology
2016
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| Online Access: | http://hdl.handle.net/1721.1/105059 |
| _version_ | 1811089654244442112 |
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| author | Pan, Yue, M.C.P. Massachusetts Institute of Technology |
| author2 | David Geltner. |
| author_facet | David Geltner. Pan, Yue, M.C.P. Massachusetts Institute of Technology |
| author_sort | Pan, Yue, M.C.P. Massachusetts Institute of Technology |
| collection | MIT |
| description | Thesis: M.C.P., Massachusetts Institute of Technology, Department of Urban Studies and Planning, 2016. |
| first_indexed | 2024-09-23T14:22:38Z |
| format | Thesis |
| id | mit-1721.1/105059 |
| institution | Massachusetts Institute of Technology |
| language | eng |
| last_indexed | 2024-09-23T14:22:38Z |
| publishDate | 2016 |
| publisher | Massachusetts Institute of Technology |
| record_format | dspace |
| spelling | mit-1721.1/1050592019-04-11T05:37:58Z Optimal subsidy policy to promote building energy efficiency under uncertainty : the case for architectural design subsidies Pan, Yue, M.C.P. Massachusetts Institute of Technology David Geltner. Massachusetts Institute of Technology. Department of Urban Studies and Planning. Massachusetts Institute of Technology. Department of Urban Studies and Planning. Urban Studies and Planning. Thesis: M.C.P., Massachusetts Institute of Technology, Department of Urban Studies and Planning, 2016. Cataloged from PDF version of thesis. Includes bibliographical references (pages 52-54). The goal of this thesis is to examine the relative cost-effectiveness of subsidies in incentivizing energy efficiency investment using a real option framework. I generalize a model of a sequential investment project involving two stages, design and construction stage, and investment lags and incorporate explicit consideration of dynamic subsidies. I apply this model to green construction projects and study how design subsidies and rent subsidies incentivizes investment in green buildings. My research questions address the impact of subsidies on the trigger prices for the two stages as well as that on the instantaneous project value. Although both design and rent subsidies can reduce trigger prices and enhance project value, design subsidies cost less both in reducing the first-stage trigger to a certain threshold and in inducing firms to switch from inefficient projects to efficient ones. Lastly, I evaluate the comparative statics of investment, showing how the patterns of lags and demand uncertainty affect the effectiveness of both subsidies. A noteworthy result is that quality switching from an inefficient project to an green alternative is more likely to occur when the uncertainty is smaller or the length of the construction stage is shorter. by Yue Pan. M.C.P. 2016-10-25T19:51:54Z 2016-10-25T19:51:54Z 2016 2016 Thesis http://hdl.handle.net/1721.1/105059 959721774 eng M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission. http://dspace.mit.edu/handle/1721.1/7582 54 pages application/pdf Massachusetts Institute of Technology |
| spellingShingle | Urban Studies and Planning. Pan, Yue, M.C.P. Massachusetts Institute of Technology Optimal subsidy policy to promote building energy efficiency under uncertainty : the case for architectural design subsidies |
| title | Optimal subsidy policy to promote building energy efficiency under uncertainty : the case for architectural design subsidies |
| title_full | Optimal subsidy policy to promote building energy efficiency under uncertainty : the case for architectural design subsidies |
| title_fullStr | Optimal subsidy policy to promote building energy efficiency under uncertainty : the case for architectural design subsidies |
| title_full_unstemmed | Optimal subsidy policy to promote building energy efficiency under uncertainty : the case for architectural design subsidies |
| title_short | Optimal subsidy policy to promote building energy efficiency under uncertainty : the case for architectural design subsidies |
| title_sort | optimal subsidy policy to promote building energy efficiency under uncertainty the case for architectural design subsidies |
| topic | Urban Studies and Planning. |
| url | http://hdl.handle.net/1721.1/105059 |
| work_keys_str_mv | AT panyuemcpmassachusettsinstituteoftechnology optimalsubsidypolicytopromotebuildingenergyefficiencyunderuncertaintythecaseforarchitecturaldesignsubsidies |