IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v9y2017i12p2300-d123293.html
   My bibliography  Save this article

The Impact of Subsidies on the Prevalence of Climate-Sensitive Residential Buildings in Malaysia

Author

Listed:
  • David T. Tan

    (International Institute for Global Health, United Nations University, Kuala Lumpur 56000, Malaysia)

  • Yi Gong

    (Sustainable Places Research Institute, Cardiff University, Cardiff, Wales CF10 3BA, UK)

  • José Gabriel Siri

    (International Institute for Global Health, United Nations University, Kuala Lumpur 56000, Malaysia)

Abstract

Dependence on air-conditioning (AC) for residential cooling and ventilation is a health and sustainability challenge. In hot temperatures, climate-sensitive buildings (CSB) can complement and/or substitute for AC usage in achieving thermal comfort. Many countries facing such conditions—particularly in tropical climates—are developing quickly, with rising populations and income creating demand for new housing and AC. This presents a window for adoption of CSB but could also result in long term lock-in of AC-dependent buildings. Here, a simple system dynamics model is used to explore the potential and limitations of subsidies to affect futures of housing stock and night-time AC usage in Malaysia. The effectiveness of subsidies in achieving high uptake of CSB and resulting health benefits is highly dependent on homebuyer willingness to pay (WTP). A detailed understanding of WTP in the Malaysian context and factors that can shift WTP is necessary to determine if CSB subsidies can be a good policy mechanism for achieving CSB uptake.

Suggested Citation

  • David T. Tan & Yi Gong & José Gabriel Siri, 2017. "The Impact of Subsidies on the Prevalence of Climate-Sensitive Residential Buildings in Malaysia," Sustainability, MDPI, vol. 9(12), pages 1-26, December.
    • Handle: RePEc:gam:jsusta:v:9:y:2017:i:12:p:2300-:d:123293
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/9/12/2300/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/9/12/2300/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Deschenes, Olivier, 2014. "Temperature, human health, and adaptation: A review of the empirical literature," Energy Economics, Elsevier, vol. 46(C), pages 606-619.
    2. Nolan, Brian & Thewissen, Stefan & Roser, Max, 2016. "GDP per capita versus median household income: What gives rise to divergence over time?," INET Oxford Working Papers 2016-03, Institute for New Economic Thinking at the Oxford Martin School, University of Oxford.
    3. Timothy Simcoe & Michael W. Toffel, 2012. "Public Procurement and the Private Supply of Green Buildings," NBER Working Papers 18385, National Bureau of Economic Research, Inc.
    4. Sailor, D.J & Pavlova, A.A, 2003. "Air conditioning market saturation and long-term response of residential cooling energy demand to climate change," Energy, Elsevier, vol. 28(9), pages 941-951.
    5. Isaac, Morna & van Vuuren, Detlef P., 2009. "Modeling global residential sector energy demand for heating and air conditioning in the context of climate change," Energy Policy, Elsevier, vol. 37(2), pages 507-521, February.
    6. Zhang, Li & Sun, Cong & Liu, Hongyu & Zheng, Siqi, 2016. "The role of public information in increasing homebuyers' willingness-to-pay for green housing: Evidence from Beijing," Ecological Economics, Elsevier, vol. 129(C), pages 40-49.
    7. Franz Fuerst & Constantine Kontokosta & Patrick McAllister, 2014. "Determinants of Green Building Adoption," Environment and Planning B, , vol. 41(3), pages 551-570, June.
    8. Martin Jakob & Reinhard Madlener, 2004. "Riding down the experience curve for energy-efficient building envelopes: the Swiss case for 1970–2020," International Journal of Energy Technology and Policy, Inderscience Enterprises Ltd, vol. 2(1/2), pages 153-178.
    9. Queena K. Qian & Edwin H. W. Chan & Abd Ghani Khalid, 2015. "Challenges in Delivering Green Building Projects: Unearthing the Transaction Costs (TCs)," Sustainability, MDPI, vol. 7(4), pages 1-22, March.
    10. Fuerst, Franz & Shimizu, Chihiro, 2016. "Green luxury goods? The economics of eco-labels in the Japanese housing market," Journal of the Japanese and International Economies, Elsevier, vol. 39(C), pages 108-122.
    11. Yueming Qiu & Shuai Yin & Yi David Wang, 2016. "Peer Effects and Voluntary Green Building Certification," Sustainability, MDPI, vol. 8(7), pages 1-15, July.
    12. Santágata, Daniela M. & Castesana, Paula & Rössler, Cristina E. & Gómez, Darío R., 2017. "Extreme temperature events affecting the electricity distribution system of the metropolitan area of Buenos Aires (1971–2013)," Energy Policy, Elsevier, vol. 106(C), pages 404-414.
    13. Marco Salvi & Juerg Syz, 2011. "What drives “green housing” construction? Evidence from Switzerland," Journal of Financial Economic Policy, Emerald Group Publishing Limited, vol. 3(1), pages 86-102, April.
    14. Albert Ping Chuen Chan & Amos Darko & Ernest Effah Ameyaw, 2017. "Strategies for Promoting Green Building Technologies Adoption in the Construction Industry—An International Study," Sustainability, MDPI, vol. 9(6), pages 1-18, June.
    15. Kikegawa, Yukihiro & Genchi, Yutaka & Yoshikado, Hiroshi & Kondo, Hiroaki, 2003. "Development of a numerical simulation system toward comprehensive assessments of urban warming countermeasures including their impacts upon the urban buildings' energy-demands," Applied Energy, Elsevier, vol. 76(4), pages 449-466, December.
    16. Chan, Edwin H.W. & Qian, Queena K. & Lam, Patrick T.I., 2009. "The market for green building in developed Asian cities--the perspectives of building designers," Energy Policy, Elsevier, vol. 37(8), pages 3061-3070, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Weimin Ma & Zitong Ren & Hua Ke, 2022. "Green Housing Subsidy Strategies Considering Consumers’ Green Preference," Sustainability, MDPI, vol. 14(5), pages 1-22, February.
    2. Wenxin Shen & Wenzhe Tang & Atthaset Siripanan & Zhen Lei & Colin F. Duffield & Felix Kin Peng Hui, 2018. "Understanding the Green Technical Capabilities and Barriers to Green Buildings in Developing Countries: A Case Study of Thailand," Sustainability, MDPI, vol. 10(10), pages 1-17, October.
    3. Lin Zhang & Liwen Chen & Zezhou Wu & Hong Xue & Wenlin Dong, 2018. "Key Factors Affecting Informed Consumers’ Willingness to Pay for Green Housing: A Case Study of Jinan, China," Sustainability, MDPI, vol. 10(6), pages 1-16, May.
    4. François Cohen & Matthieu Glachant & Magnus Söderberg, 2017. "The cost of adapting to climate change: evidence from the US residential sector," Working Papers hal-01695171, HAL.
    5. Enrica De Cian & Ian Sue Wing, 2016. "Global Energy Demand in a Warming Climate," Working Papers 2016.16, Fondazione Eni Enrico Mattei.
    6. Zhang, Li & Wu, Jing & Liu, Hongyu, 2018. "Policies to enhance the drivers of green housing development in China," Energy Policy, Elsevier, vol. 121(C), pages 225-235.
    7. Néstor Santillán-Soto & O. Rafael García-Cueto & Alejandro A. Lambert-Arista & Sara Ojeda-Benítez & Samantha E. Cruz-Sotelo, 2019. "Comparative Analysis of Two Urban Microclimates: Energy Consumption and Greenhouse Gas Emissions," Sustainability, MDPI, vol. 11(7), pages 1-11, April.
    8. Toparlar, Y. & Blocken, B. & Maiheu, B. & van Heijst, G.J.F., 2018. "Impact of urban microclimate on summertime building cooling demand: A parametric analysis for Antwerp, Belgium," Applied Energy, Elsevier, vol. 228(C), pages 852-872.
    9. Zhu, Dan & Tao, Shu & Wang, Rong & Shen, Huizhong & Huang, Ye & Shen, Guofeng & Wang, Bin & Li, Wei & Zhang, Yanyan & Chen, Han & Chen, Yuanchen & Liu, Junfeng & Li, Bengang & Wang, Xilong & Liu, Wenx, 2013. "Temporal and spatial trends of residential energy consumption and air pollutant emissions in China," Applied Energy, Elsevier, vol. 106(C), pages 17-24.
    10. Louis-Gaëtan Giraudet & Céline Guivarch, 2016. "Global warming as an asymmetric public bad," Working Papers 2016.26, FAERE - French Association of Environmental and Resource Economists.
    11. Fuerst, Franz & Warren-Myers, Georgia, 2018. "Does voluntary disclosure create a green lemon problem? Energy-efficiency ratings and house prices," Energy Economics, Elsevier, vol. 74(C), pages 1-12.
    12. Jian Cui & Lunyu Xie & Xinye Zheng, 2023. "Climate change, air conditioning, and urbanization—evidence from daily household electricity consumption data in China," Climatic Change, Springer, vol. 176(8), pages 1-19, August.
    13. Jaglom, Wendy S. & McFarland, James R. & Colley, Michelle F. & Mack, Charlotte B. & Venkatesh, Boddu & Miller, Rawlings L. & Haydel, Juanita & Schultz, Peter A. & Perkins, Bill & Casola, Joseph H. & M, 2014. "Assessment of projected temperature impacts from climate change on the U.S. electric power sector using the Integrated Planning Model®," Energy Policy, Elsevier, vol. 73(C), pages 524-539.
    14. Hekkenberg, M. & Benders, R.M.J. & Moll, H.C. & Schoot Uiterkamp, A.J.M., 2009. "Indications for a changing electricity demand pattern: The temperature dependence of electricity demand in the Netherlands," Energy Policy, Elsevier, vol. 37(4), pages 1542-1551, April.
    15. Daniel C. Steinberg & Bryan K. Mignone & Jordan Macknick & Yinong Sun & Kelly Eurek & Andrew Badger & Ben Livneh & Kristen Averyt, 2020. "Decomposing supply-side and demand-side impacts of climate change on the US electricity system through 2050," Climatic Change, Springer, vol. 158(2), pages 125-139, January.
    16. Roohollah Taherkhani, 2024. "Barriers to green building implementation in developing countries: the case of Iran," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(11), pages 28389-28421, November.
    17. Albert Ping Chuen Chan & Amos Darko & Ernest Effah Ameyaw, 2017. "Strategies for Promoting Green Building Technologies Adoption in the Construction Industry—An International Study," Sustainability, MDPI, vol. 9(6), pages 1-18, June.
    18. Niina Leskinen & Jussi Vimpari & Seppo Junnila, 2020. "A Review of the Impact of Green Building Certification on the Cash Flows and Values of Commercial Properties," Sustainability, MDPI, vol. 12(7), pages 1-22, March.
    19. Hala Sanboskani & Mounir El Asmar & Elie Azar, 2022. "Green Building Contractors 2025: Analyzing and Forecasting Green Building Contractors’ Market Trends in the US," Sustainability, MDPI, vol. 14(14), pages 1-23, July.
    20. Hekkenberg, M. & Moll, H.C. & Uiterkamp, A.J.M. Schoot, 2009. "Dynamic temperature dependence patterns in future energy demand models in the context of climate change," Energy, Elsevier, vol. 34(11), pages 1797-1806.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:9:y:2017:i:12:p:2300-:d:123293. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.