Incentives and Barriers to Green Building Implementation: The Case of Jakarta

  • Sigid Prasetyawan University of Indonesia
  • Rossy Armyn Machfudiyanto University of Indonesia
  • Titi Sari Nurul Rachmawati Kyung Hee University
DOI: https://doi.org/10.22146/jcef.7150
Keywords: Green building, Incentive, Barrier, PLS-SEM, Cost Risk

Abstract

The low implementation of green building through building certification in Jakarta is responsible for the decreased achievement of reducing greenhouse gas emissions in 2020. This is observed in the energy sector through the efficient use of power in commercial buildings, which is only 37,789 tons (0.72 %) of the 5.26 million tons of CO2e expected in 2030, potentially causing the effects of a climate change-related disaster. In this case, the low prevalence of green buildings is due to the barriers preventing their implementation, with the provision of incentives being a suitable solution regarding its significant influence on rapid development. Therefore, this study aims to determine the influential relationship between barriers, incentives, and the level of green building implementation, to identify the most effective applicable benefits in Jakarta. In this context, path analysis and structural equation modeling (SEM) was used with 101 participants selected from developer/owner institutions, consultants, contractors, and the government experienced in implementing the experimental data of the buildings. These data were subsequently analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results showed that cost-risk and knowledge-information barrier significantly impacted the level of green building implementation in Jakarta. This led to the recommendation of non-financial incentives as an effective regional benefit, which relevantly affected the level of green building implementation, as well as cost-risk and knowledge-information barriers. These results were expected to assist policymakers and practitioners in formulating effective incentive policies for the implementation of green buildings in Jakarta.

 

Author Biographies

Sigid Prasetyawan, University of Indonesia

 

 

Rossy Armyn Machfudiyanto, University of Indonesia

 

 

Titi Sari Nurul Rachmawati, Kyung Hee University

 

 

References

Adekanye, O. G., Davis, A. and Azevedo, I. L. (2020), ‘Federal policy, local policy, and green building certifications in the us’, Energy and Buildings 209, 109700.

Agyekum, K., Opoku, A., Oppon, A. J. and Opoku, D.-G. J. (2022), ‘Obstacles to green building project financing: an empirical study in Ghana’, International Journal of Construction Management 22(15), 2922–2930.

Basten, V., Berawi, M. A., Latief, Y., CrÃ, I. et al. (2018), ‘Building incentive structure in the context of green building implementation: from the local government perspective’, Journal of Design and Built Environment 18(2), 37–45.

Basten, V., Latief, Y., Berawi, M., Muliarto, H. et al. (2018), Green building premium cost analysis in Indonesia using work breakdown structure method, in ‘IOP Conference Series: Earth and Environmental Science’, Vol. 124, IOP Publishing, p. 012004.

Bond, S. A. and Devine, A. (2016), ‘Incentivizing green single-family construction: Identifying effective government policies and their features’, The Journal of Real Estate Finance and Economics 52, 383–407.

Chan, A. P. C., Darko, A., Olanipekun, A. O. and Ameyaw, E. E. (2018), ‘Critical barriers to green building technologies adoption in developing countries: The case of Ghana’, Journal of cleaner production 172, 1067–1079.

Chegut, A., Eichholtz, P. and Kok, N. (2019), ‘The price of innovation: An analysis of the marginal cost of green buildings’, Journal of Environmental Economics and Management 98, 102248.

Choi, C. (2009), ‘Removing market barriers to green development: principles and action projects to promote widespread adoption of green development practices’, Journal of Sustainable Real Estate 1(1), 107–138.

Choi, E. (2010), ‘Green on buildings: the effects of municipal policy on green building designations in America's central cities’, Journal of Sustainable Real Estate 2(1), 1–21.

Clark, R., Reed, J. and Sunderland, T. (2018),‘Bridging funding gaps for climate and sustainable development: Pitfalls, progress and potential of private finance’, Land Use Policy 71, 335–346.

Darko, A. and Chan, A. P. C. (2018), ‘Strategies to promote green building technologies adoption in developing countries: The case of ghana’, Building and Environment 130, 74–84.

Darko, A., Chan, A. P. C., Yang, Y., Shan, M., He, B.-J. and Gou, Z. (2018), ‘Influences of barriers, drivers, and promotion strategies on green building technologies adoption in developing countries: The ghanaian case’, Journal of Cleaner Production 200, 687–703.

Daud, K. A. M., Khidzir, N. Z., Ismail, A. R. and Abdullah, F. A. (2018), ‘Validity and reliability of instrument to measure social media skills among small and medium entrepreneurs at pengkalan datu river’, International Journal of Development and sustainability 7(3), 1026–1037.

Deng, W., Yang, T., Tang, L. and Tang, Y.-T. (2018), ‘Barriers and policy recommendations for developing green buildings from local government perspective: a case study of ningbo china’, Intelligent Buildings International 10(2), 61–77.

Dinas Lingkungan Hidup Provinsi DKI Jakarta (2021), ‘Inventarisasi profil emisi dan pelaporan penurunan emisi gas rumah kaca Provinsi DKI Jakarta’.

Durdyev, S., Ismail, S., Ihtiyar, A., Bakar, N. F. S. A. and Darko, A. (2018), ‘A partial least squares structural equation modeling (pls-sem) of barriers to sustainable construction in Malaysia’, Journal of cleaner production 204, 564–572.

GBCI (2021), ‘Certified building’, [online] Green Building Council Indonesia. URL: https://www.gbcindonesia.org/certbuilding

GBI (2022), ‘Executive summary green building index’, [online]. URL: https://www.greenbuildingindex.org/wp-content/uploads/2022/07/06-Executive-Summary-30-June-2022.pdf

GBIG (2022), ‘Hong Kong green building certifications’, [online] Green Building Information Gateway. URL: http://www.gbig.org/places/526

Gou, Z., Lau, S. and Prasad, D. (2013), ‘Market readiness and policy implications for green buildings: case study from Hong Kong. J green build 8 (2): 162–173’.

Guribie, F. L., Akubah, J. T., Tengan, C. and Blay Jnr, A. V. K. (2022), ‘Demand for green building in Ghana: A conceptual modeling and empirical study of the impediments’, Construction Innovation 22(2), 342-360.

Hair, J., Hult, G., Ringle, C. and Sarstedt, M. (2013), A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM), SAGE Publications, Singapore.

Hair, J., Sarstedt, M., Hopkins, L. and Kuppelwieser, V. (2014), ‘Partial least squares structural equation modeling (pls-sem): An emerging tool in business research’, European Business Review 26(2), 106–121.

Henseler, J., Dijkstra, T. K., Sarstedt, M., Ringle, C. M., Diamantopoulos, A., Straub, D. W., Ketchen Jr, D. J., Hair, J. F., Hult, G. T. M. and Calantone, R. J. (2014), ‘Common beliefs and reality about pls: Comments on Rönkkö and Evermann (2013)’, Organizational research methods 17(2), 182–209.

Hwang, B.-G., Shan, M., Xie, S. and Chi, S. (2017), ‘Investigating residents’ perceptions of green retrofit program in mature residential estates: The case of Singapore’, Habitat International 63, 103–112.

Kumar, R. (2018), ‘Research methodology: A step-by-step guide for beginners’, Research methodology pp. 1–528.

Latief, Y., Berawi, M. A., Basten, V., Budiman, R. and Riswanto, R. (2017), Premium cost optimization of operational and maintenance of green building in indonesia using life cycle assessment method, in ‘AIP conference proceedings’, Vol. 1855, AIP Publishing.

Liu, G., Li, X., Tan, Y. and Zhang, G. (2020), ‘Building green retrofit in china: Policies, barriers and recommendations’, Energy Policy 139, 111356.

MacAskill, S., Roca, E., Liu, B., Stewart, R. A. and Sahin, O. (2021), ‘Is there a green premium in the green bond market? systematic literature review revealing premium determinants’, Journal of Cleaner Production 280, 124491.

Mozingo, L. and Arens, E. (2014), ‘Quantifying the comprehensive greenhouse gas co-benefits of green buildings’.

Mustaffa, N. K., Isa, C. M. M. and Ibrahim, C. K. I. C. (2021), ‘Top-down bottom-up strategic green building development framework: Case studies in malaysia’, Building and Environment 203, 108052.

Nasereddin, M. and Price, A. (2021), ‘Addressing the capital cost barrier to sustainable construction’, Developments in the Built Environment 7, 100049.

Nguyen, H.-T., Skitmore, M., Gray, M., Zhang, X. and Olanipekun, A. O. (2017), ‘Will green building development take off? an exploratory study of barriers to green building in Vietnam’, Resources, Conservation and Recycling 127, 8–20.

Olubunmi, O., Xia, P. and Skitmore, M. (2016), ‘Green building incentives: A review’, Renewable and Sustainable Energy Reviews .

Onuoha, I. J., Aliagha, G. U. and Rahman, M. S. A. (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 90, 814–823.

Orsi, A., GuillĂ©n-GuillamĂłn, I. and Pellicer, E. (2020), ‘Optimization of green building design processes: Case studies within the European Union’, Sustainability 12(6), 2276.

Rabani, M., Madessa, H., Ljungström, M., Aamodt, L., LĂžvvold, S. and Nord, N. (2021), ‘Life cycle analysis of ghg emissions from the building retrofitting: The case of a Norwegian office building’, Building and Environment 204, 108159.

Rana, A., Sadiq, R., Alam, M. S., Karunathilake, H. and Hewage, K. (2021), ‘Evaluation of financial incentives for green buildings in Canadian landscape’, Renewable and Sustainable Energy Reviews 135, 110199.

Saha, S., Hiremath, R. B., Prasad, S. and Kumar, B. (2021), ‘Barriers to adoption of commercial green buildings in India: A review’, Journal of Infrastructure Development 13(2), 107–128.

Sahid, Sumiyati, Y. and Purisari, R. (2020), ‘The constrains of green building implementation in Indonesia’, Journal of Physics: Conference Series 1485(1), 012050. URL: https://doi.org/10.1088/17426596/1485/1/012050

Saka, N., Olanipekun, A. O. and Omotayo, T. (2021), ‘Reward and compensation incentives for enhancing green building construction’, Environmental and Sustainability Indicators 11, 100138.

Samari, M., Godrati, N., Esmaeilifar, R., Olfat, P. and Shafiei, M. W. M. (2013), ‘The investigation of the barriers in developing green building in Malaysia’, Modern applied science 7(2), 1.

Schermelleh-Engel, K., Moosbrugger, H., MĂŒller, H. et al. (2003), ‘Evaluating the fit of structural equation models: Tests of significance and descriptive goodness-of-fit measures’, Methods of psychological research online 8(2), 23–74.

Shazmin, S., Sipan, I. and Sapri, M. (2016), ‘Property tax assessment incentives for green building: A review’, Renewable and Sustainable Energy Reviews 60, 536–548.

Shen, W., Tang, W., Siripanan, A., Lei, Z., Duffield, C. F. and Hui, F. K. P. (2018), ‘Understanding the green technical capabilities and barriers to green buildings in developing countries: A case study of Thailand’, Sustainability 10(10), 3585.

Sugiyono (2013), Metode Penelitian Kuantitatif, Kualitatif dan R & D, ALFABETA, Bandung.

UNEP (2020), ‘Global status report for buildings and construction’.

United Nations (2021), ‘What is climate change?’, [online] United Nations. URL: https://www.un.org/en/climatechange/what-is-climate-change

US EPA (2016), ‘Basic information’, [online] United States Environmental Protection Agency. URL: https://archive.epa.gov/greenbuilding/web/html/about.html

USGBC (2022), ‘Indonesia leed certified project’, [online] USGBC. URL: https://www.usgbc.org/projects?Country=%5B%22Indonesia%22%5D

Wimala, M., Akmalah, E. and Sururi, M. R. (2016), ‘Breaking through the barriers to green building

movement in Indonesia: Insights from building occupants’, Energy Procedia 100, 469–474.

Wong, K. K.-K. (2013), ‘Partial least squares structural equation modeling (pls-sem) techniques using smartpls’, Marketing bulletin 24(1), 1–32

Wong, S., Low, W., Wong, K. and Tai, Y. (2021), Barriers for green building implementation in Malaysian construction industry, in ‘IOP Conference Series: Materials Science and Engineering’, Vol. 1101, IOP Publishing, p. 012029.

Zhang, L., Wu, J. and Liu, H. (2018), ‘Policies to enhance the drivers of green housing development in China’, Energy Policy 121, 225–235.

Published
2023-07-24
How to Cite
Prasetyawan, S., Machfudiyanto, R. A., & Rachmawati, T. S. N. (2023). Incentives and Barriers to Green Building Implementation: The Case of Jakarta. Journal of the Civil Engineering Forum, 9(3), 287-302. https://doi.org/10.22146/jcef.7150
Issue
Vol. 9 No. 3 (September 2023)
Section
Articles

Copyright (c) 2023 The Author(s)

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Copyright is granted to authors for the purpose of providing protection for articles written to describe experiments and their results. JCEF will protect and defend the work and reputation of the author and are also willing to address any allegations of violation, plagiarism, fraud, etc. against articles written and published by JCEF.  JCEF is published under the terms of the Creative Commons Attribution-ShareAlike 4.0 International License (CC BY-SA 4.0). The author holds the copyright and assigns the journal rights to the first publication (online and print) of the work simultaneously.