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Optimizing green subsidy policies for decarbonization in Southeast Asia's real estate sector

Author

Listed:
  • Liu, Huake
  • Nie, He
  • Sang, Di
  • Wang, Yu
  • Zhang, Xueren

Abstract

The real estate sector is a significant contributor to carbon emissions, especially in lesser-developed countries in Southeast Asia, where the adoption of energy-efficient technologies remains limited. This paper evaluates the effectiveness of heterogeneous green subsidy policies aimed at reducing carbon emissions in the real estate industry. Using a dynamic stochastic general equilibrium (DSGE) model, we assess the impact of these policies on building materials manufacturers, real estate enterprises, and regulatory bodies. Our findings indicate that targeted subsidies for low-carbon production factors significantly reduce carbon emissions and support sustainable economic growth in the real estate sector. The results offer crucial insights into formulating green subsidy policies that align with decarbonization goals while fostering sustainable development in Southeast Asia's emerging economies. This research provides practical recommendations for policymakers to optimize green subsidies and promote a transition to a low-carbon future.

Suggested Citation

  • Liu, Huake & Nie, He & Sang, Di & Wang, Yu & Zhang, Xueren, 2025. "Optimizing green subsidy policies for decarbonization in Southeast Asia's real estate sector," Energy Economics, Elsevier, vol. 144(C).
    • Handle: RePEc:eee:eneeco:v:144:y:2025:i:c:s0140988325001963
    DOI: 10.1016/j.eneco.2025.108372
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