Green apartments in Nanjing, China

Hu, Hong, Stan Geertman and Pieter Hooimeijer. (2014) Green apartments in Nanjing China: do developers and planners understand the valuation by residents? Housing Studies, 29 (1), 26-43. DOI:10.1080/02673037.2014.848268

The Chinese government promotes green construction as part of the strategy to reduce energy consumption. In practice, green construction can be impeded because various stakeholders valuate green attributes in different ways. This paper uses the analytic hierarchy process to analyse the extent to which developers and planners understand the valuation of green apartment attributes by residents in Nanjing. Results show that buyers of green apartments rank green attributes lower than safety and accessibility, and rank healthy construction materials and comfort much higher than thermal isolation or reduced energy costs. Green developers tend to focus on aspects that define their margin, such as green attributes and locational benefits and overlook the social needs, which are not addressed in building codes and not under their control. They have better understanding of green residents’ priorities with health issues; planners are more familiar with the social needs of residents and lack green marketing knowledge.

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Hu, Hong, Stan Geertman and Pieter Hooimeijer. (2014) The willingness to pay for green apartments: The case of Nanjing, China. Urban Studies. Prepublished January, 7, 2014. DOI: 10.1177/0042098013516686

Faced with the challenge of developing sustainable cities, the Chinese government sets green construction as part of the national strategy to reduce energy consumption. However, the consumer market has shown limited response to such policies. To upscale green building, it is crucial to understand the market demands for green apartments. This article employs a conjoint model to estimate the willingness to pay for green dwellings versus accessibility to metros and jobs and neighbourhood quality by different socio-economic groups in Nanjing, China. Results show that the socio-economic status of homebuyers determines their willingness to pay for green attributes. Only the rich are prepared to pay for green apartments to improve their living comfort. To all, the notion of health is appealing as consumers are willing to pay for an unpolluted environment and for non-toxic construction materials used in buildings in good locations.

Read full text on SAGE Journals Online (restricted access)

Monique Abud

Centre d'études sur la Chine moderne et contemporaine, EHESS, Paris, France

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