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Research on the Mechanism of the Economic Compensation to Prefabricated Building Based on the Loss of Developers’ Revenue

In: Proceedings of the 23rd International Symposium on Advancement of Construction Management and Real Estate

Author

Listed:
  • Yang Chen

    (Chongqing Jiaotong University)

  • Hao Wu

    (Chongqing Jiaotong University)

  • Jiuxia Tan

    (Chongqing Jiaotong University)

Abstract

The development of prefabricated building in China is not smooth, the policy system is not perfect, and the incremental cost is too high. Therefore, the establishment of a scientific and effective incentive mechanism is an important factor to promote the healthy development of prefabricated building. Based on the definition of incremental cost, this paper puts forward the economic compensation mechanism based on the loss of developers’ revenue; By analyzing the source and characteristics of the revenue loss of the developers, the composition of the profit loss of the prefabricated building is summarized; The profit function is constructed by using the C-D production function, and the loss compensation line is discussed; The economic, environmental and social effects of the assembly building are analyzed, and the model of the developer and the government is set up to establish an incentive mechanism for the prefabricated building based on the loss of revenue.

Suggested Citation

  • Yang Chen & Hao Wu & Jiuxia Tan, 2021. "Research on the Mechanism of the Economic Compensation to Prefabricated Building Based on the Loss of Developers’ Revenue," Springer Books, in: Fenjie Long & Sheng Zheng & Yuzhe Wu & Gangying Yang & Yan Yang (ed.), Proceedings of the 23rd International Symposium on Advancement of Construction Management and Real Estate, pages 1282-1294, Springer.
    • Handle: RePEc:spr:sprchp:978-981-15-3977-0_99
    DOI: 10.1007/978-981-15-3977-0_99
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