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Modelling the effects of green building incentives and green building skills on supply factors affecting green commercial property investment

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  • Onuoha, Iheanyichukwu Joachim
  • Aliagha, Godwin Uche
  • Rahman, Mohd Shahril Abdul

Abstract

The aim of this study is to identify and model the motivating factors that influence developers’ and investors’ decisions to invest in green commercial properties using structural equation modelling methods. Precisely, the study modelled the effects of monetary green tax incentives and green building skills on supply factors affecting green commercial property investment. The study was based on a survey of 350 real estate developers, and investors in Malaysia and the model was validated for reliability and validity. The structural equation modelling indicated that monetary green tax incentives and green skills have significant causal effects on supply. Among these factors, life cost saving motivations, government policies, green certification, developers’ expected rate of return motivations, and market strategy benefit motivations were significant. Monetary green tax incentives were, however, found to have the most significant effect on green commercial property supply and investment.

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  • Onuoha, Iheanyichukwu Joachim & Aliagha, Godwin Uche & Rahman, Mohd Shahril Abdul, 2018. "Modelling the effects of green building incentives and green building skills on supply factors affecting green commercial property investment," Renewable and Sustainable Energy Reviews, Elsevier, vol. 90(C), pages 814-823.
    • Handle: RePEc:eee:rensus:v:90:y:2018:i:c:p:814-823
    DOI: 10.1016/j.rser.2018.04.012
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    1. Franz Fuerst & Patrick McAllister, 2009. "An Investigation of the Effect of Eco-Labeling on Office Occupancy Rates," Journal of Sustainable Real Estate, Taylor & Francis Journals, vol. 1(1), pages 49-64, January.
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    Cited by:

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    5. Evangelia Karasmanaki & Spyridon Galatsidas & Georgios Tsantopoulos, 2019. "An Investigation of Factors Affecting the Willingness to Invest in Renewables among Environmental Students: A Logistic Regression Approach," Sustainability, MDPI, vol. 11(18), pages 1-18, September.
    6. Norouzi, Nima & Fani, Maryam & Talebi, Saeed, 2022. "Green tax as a path to greener economy: A game theory approach on energy and final goods in Iran," Renewable and Sustainable Energy Reviews, Elsevier, vol. 156(C).
    7. Zhengda Li & Wanping Yang & Chengjun Wang & Yuesheng Zhang & Xiaoling Yuan, 2019. "Guided High-Quality Development, Resources, and Environmental Forcing in China’s Green Development," Sustainability, MDPI, vol. 11(7), pages 1-18, April.
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    9. Ying Yan Tan & Rosmini Omar, 2022. "Green Practices and Innovations of Traditional Chinese Medicine (TCM) Industry in Singapore: Idea Worth Sharing," Sustainability, MDPI, vol. 14(18), pages 1-38, September.
    10. Li, Zhengda & Zheng, Chengxin & Liu, Aimin & Yang, Yang & Yuan, Xiaoling, 2022. "Environmental taxes, green subsidies, and cleaner production willingness: Evidence from China's publicly traded companies," Technological Forecasting and Social Change, Elsevier, vol. 183(C).
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