Can Green Finance Drive the Development of the Green Building Industry?—Based on the Evolutionary Game Theory

Shaoliang Li, Xiazhong Zheng () and Qin Zeng
Additional contact information
Shaoliang Li: Hubei Key Laboratory of Construction and Management in Hydropower Engineering, China Three Gorges University, Yichang 443002, China
Xiazhong Zheng: Hubei Key Laboratory of Construction and Management in Hydropower Engineering, China Three Gorges University, Yichang 443002, China
Qin Zeng: Hubei Key Laboratory of Construction and Management in Hydropower Engineering, China Three Gorges University, Yichang 443002, China

Sustainability, 2023, vol. 15, issue 17, 1-17

Abstract: The construction industry has a significant impact on the environment, and green buildings provide an effective means of reducing environmental impact. Green finance can facilitate industrial transformation and upgrading, reduce construction costs, attract investment, and promote green industry development. However, traditional financing models still dominate the financing of green building projects, even if they are not in line with the core principles of green building. To solve this problem, this paper establishes a three-party evolutionary game model, which, based on the assumption of finite rationality, considers three core stakeholders: bank and financial institutions, developers, and consumers. The conditions for evolutionary stable equilibrium are identified through an equilibrium analysis of the strategic behavior of each subject, followed by a replication dynamic analysis. Simulation analysis was used to study the effects of key parameters on cooperative behavior and evolution. The results of the study show that (1) The high initial willingness of bank and financial institutions and consumers has a significant driving effect on the market. (2) When the market willingness is high, the government can steer the market towards the desired goal at relatively low policy costs. (3) With the support of green finance, green buildings can still flourish even if the return is slightly lower than traditional building projects. The results of the study reveal cooperative behavior and its evolutionary patterns, which help stakeholders coordinate their goals and promote the development of the green building industry.

Keywords: green buildings; green finance; green finance in green buildings; evolutionary game (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://www.mdpi.com/2071-1050/15/17/13134/pdf (application/pdf)
https://www.mdpi.com/2071-1050/15/17/13134/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:15:y:2023:i:17:p:13134-:d:1230218

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().