Key Factors Affecting Informed Consumers’ Willingness to Pay for Green Housing: A Case Study of Jinan, China

Lin Zhang, Liwen Chen, Zezhou Wu, Hong Xue and Wenlin Dong
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Lin Zhang: School of Economics and Management, Hebei University of Technology, Tianjin 300401, China
Liwen Chen: School of Economics and Management, Hebei University of Technology, Tianjin 300401, China
Zezhou Wu: Department of Construction Management and Real Estate, Shenzhen University, Shenzhen 518060, China
Hong Xue: School of Management, Harbin Institute of Technology, Harbin 150001, China
Wenlin Dong: School of Management Engineering, Shandong Jianzhu University, Jinan 250101, China

Sustainability, 2018, vol. 10, issue 6, 1-16

Abstract: In recent years, the issues of large energy consumption and degraded living environments have attracted considerable attention in developed and developing countries. Hence, green housing (GH) has become a popular strategy for achieving sustainable urbanization. The demand in the GH market played an important role in promoting GH. In China, whether potential consumers will pay for GH remains unclear. In this circumstance, this study aims to explore the willingness of construction practitioners, who are regarded to have more knowledge concerning GH, to pay for GH in China. Based on the theory of planned behavior (TPB), nine critical factors related to practitioners’ willingness to pay (WTP) were examined through face-to-face interviews using a questionnaire survey. A total of 180 construction participants in Jinan were investigated in this study. A binary logistic regression model was used to analyze the collected data. The research finding revealed that only 68 respondents were willing to pay for GH. Four factors showed significant and positive influences in practitioners’ WTP, including environmental awareness, GH comfort, government incentive, and neighbors’/friends’ assessment. By contrast, GH price displayed a significant and negative influence in practitioners’ WTP. The remaining factors, namely, mature GH market, degree of popularity, publicity of GH from developers, and GH affordability, showed insignificant relationships with the practitioners’ WTP. The research findings can provide a helpful reference for policy makers to formulate effective incentive policies in the promotion of GH.

Keywords: green housing; willingness to pay; theory of planned behavior; construction practitioners (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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