IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v10y2018i6p1711-d148689.html
   My bibliography  Save this article

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

Author

Listed:
  • Lin Zhang

    (School of Economics and Management, Hebei University of Technology, Tianjin 300401, China
    School of Management Engineering, Shandong Jianzhu University, Jinan 250101, 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)

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.

Suggested Citation

  • Lin Zhang & Liwen Chen & Zezhou Wu & Hong Xue & Wenlin Dong, 2018. "Key Factors Affecting Informed Consumers’ Willingness to Pay for Green Housing: A Case Study of Jinan, China," Sustainability, MDPI, vol. 10(6), pages 1-16, May.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:6:p:1711-:d:148689
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/10/6/1711/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/10/6/1711/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Tan, Chin-Seang & Ooi, Hooi-Yin & Goh, Yen-Nee, 2017. "A moral extension of the theory of planned behavior to predict consumers’ purchase intention for energy-efficient household appliances in Malaysia," Energy Policy, Elsevier, vol. 107(C), pages 459-471.
    2. Kumar, Bipul, 2012. "Theory of Planned Behaviour Approach to Understand the Purchasing Behaviour for Environmentally Sustainable Products," IIMA Working Papers WP2012-12-08, Indian Institute of Management Ahmedabad, Research and Publication Department.
    3. Hong Hu & Stan Geertman & Pieter Hooimeijer, 2014. "The willingness to pay for green apartments: The case of Nanjing, China," Urban Studies, Urban Studies Journal Limited, vol. 51(16), pages 3459-3478, December.
    4. Spenser Robinson & Robert Simons & Eunkyu Lee & Andrew Kern, 2016. "Demand for Green Buildings: Office Tenants' Stated Willingness-to-Pay for Green Features," Journal of Real Estate Research, American Real Estate Society, vol. 38(3), pages 423-452.
    5. Kamonthip Maichum & Surakiat Parichatnon & Ke-Chung Peng, 2016. "Application of the Extended Theory of Planned Behavior Model to Investigate Purchase Intention of Green Products among Thai Consumers," Sustainability, MDPI, vol. 8(10), pages 1-20, October.
    6. Kumar, Bipul & Manrai, Ajay K. & Manrai, Lalita A., 2017. "Purchasing behaviour for environmentally sustainable products: A conceptual framework and empirical study," Journal of Retailing and Consumer Services, Elsevier, vol. 34(C), pages 1-9.
    7. Zhao, Dong-Xue & He, Bao-Jie & Johnson, Christine & Mou, Ben, 2015. "Social problems of green buildings: From the humanistic needs to social acceptance," Renewable and Sustainable Energy Reviews, Elsevier, vol. 51(C), pages 1594-1609.
    8. Marchand, Robert D. & Koh, S.C. Lenny & Morris, Jonathan C., 2015. "Delivering energy efficiency and carbon reduction schemes in England: Lessons from Green Deal Pioneer Places," Energy Policy, Elsevier, vol. 84(C), pages 96-106.
    9. Bon‐Gang Hwang & Jac See Tan, 2012. "Green building project management: obstacles and solutions for sustainable development," Sustainable Development, John Wiley & Sons, Ltd., vol. 20(5), pages 335-349, September.
    10. Han, Heesup & Hsu, Li-Tzang (Jane) & Sheu, Chwen, 2010. "Application of the Theory of Planned Behavior to green hotel choice: Testing the effect of environmental friendly activities," Tourism Management, Elsevier, vol. 31(3), pages 325-334.
    11. Gerpott, Torsten J. & Paukert, Mathias, 2013. "Determinants of willingness to pay for smart meters: An empirical analysis of household customers in Germany," Energy Policy, Elsevier, vol. 61(C), pages 483-495.
    12. Ingrid Moons & Patrick De Pelsmacker, 2015. "An Extended Decomposed Theory of Planned Behaviour to Predict the Usage Intention of the Electric Car: A Multi-Group Comparison," Sustainability, MDPI, vol. 7(5), pages 1-34, May.
    13. Chan, Edwin H.W. & Qian, Queena K. & Lam, Patrick T.I., 2009. "The market for green building in developed Asian cities--the perspectives of building designers," Energy Policy, Elsevier, vol. 37(8), pages 3061-3070, August.
    14. Zhang, Li & Sun, Cong & Liu, Hongyu & Zheng, Siqi, 2016. "The role of public information in increasing homebuyers' willingness-to-pay for green housing: Evidence from Beijing," Ecological Economics, Elsevier, vol. 129(C), pages 40-49.
    15. Li, Xuesong & Li, Hao & Wang, Xingwu, 2013. "Farmers' willingness to convert traditional houses to solar houses in rural areas: A survey of 465 households in Chongqing, China," Energy Policy, Elsevier, vol. 63(C), pages 882-886.
    16. Octav-Ionut Macovei, 2015. "Applying the Theory of Planned Behavior in Predicting Proenvironmental Behaviour: The Case of Energy Conservation," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 11(4), pages 15-32, August.
    17. Kotchen, Matthew J. & Boyle, Kevin J. & Leiserowitz, Anthony A., 2013. "Willingness-to-pay and policy-instrument choice for climate-change policy in the United States," Energy Policy, Elsevier, vol. 55(C), pages 617-625.
    18. Lin Zhang & Liwen Chen & Zezhou Wu & Sizhen Zhang & Huanbin Song, 2018. "Investigating Young Consumers’ Purchasing Intention of Green Housing in China," Sustainability, MDPI, vol. 10(4), pages 1-15, April.
    19. Queena K. Qian & Edwin H. W. Chan & Abd Ghani Khalid, 2015. "Challenges in Delivering Green Building Projects: Unearthing the Transaction Costs (TCs)," Sustainability, MDPI, vol. 7(4), pages 1-22, March.
    20. Zhang, Yurong & Wang, Jingjing & Hu, Fangfang & Wang, Yuanfeng, 2017. "Comparison of evaluation standards for green building in China, Britain, United States," Renewable and Sustainable Energy Reviews, Elsevier, vol. 68(P1), pages 262-271.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zezhou Wu & Mingyang Jiang & Yuzhu Cai & Hao Wang & Shenghan Li, 2019. "What Hinders the Development of Green Building? An Investigation of China," IJERPH, MDPI, vol. 16(17), pages 1-18, August.
    2. Ricardo Teruel-Gutierrez & Mariluz Maté-Sánchez-Val, 2021. "The impact of Instagram on Airbnb’s listing prices in the city of Barcelona," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 67(3), pages 737-763, December.
    3. Hongyun Si & Jian-gang Shi & Daizhong Tang & Shiping Wen & Wei Miao & Kaifeng Duan, 2019. "Application of the Theory of Planned Behavior in Environmental Science: A Comprehensive Bibliometric Analysis," IJERPH, MDPI, vol. 16(15), pages 1-26, August.
    4. WeiYu Ji & Edwin H. W. Chan, 2019. "Critical Factors Influencing the Adoption of Smart Home Energy Technology in China: A Guangdong Province Case Study," Energies, MDPI, vol. 12(21), pages 1-24, November.
    5. Hasan Fehmi Topal & Dexter V. L. Hunt & Christopher D. F. Rogers, 2021. "Exploring Urban Sustainability Understanding and Behaviour: A Systematic Review towards a Conceptual Framework," Sustainability, MDPI, vol. 13(3), pages 1-33, January.
    6. Fernando A. López & Román Mínguez & Jesús Mur, 2020. "ML versus IV estimates of spatial SUR models: evidence from the case of Airbnb in Madrid urban area," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 64(2), pages 313-347, April.
    7. Constantin Kempf & Juerg Syz, 2022. "Why pay for sustainable housing? Decomposing the green premium of the residential property market in the Canton of Zurich, Switzerland," SN Business & Economics, Springer, vol. 2(11), pages 1-39, November.
    8. Hasan Fehmi Topal & Dexter V. L. Hunt & Christopher D. F. Rogers, 2021. "Sustainability Understanding and Behaviors across Urban Areas: A Case Study on Istanbul City," Sustainability, MDPI, vol. 13(14), pages 1-38, July.
    9. Hasan Fehmi Topal & Dexter V.L. Hunt & Christopher D.F. Rogers, 2020. "Urban Sustainability and Smartness Understanding (USSU)—Identifying Influencing Factors: A Systematic Review," Sustainability, MDPI, vol. 12(11), pages 1-30, June.
    10. Jessica Müller & Ángel Acevedo-Duque & Sheyla Müller & Prateek Kalia & Khalid Mehmood, 2021. "Predictive Sustainability Model Based on the Theory of Planned Behavior Incorporating Ecological Conscience and Moral Obligation," Sustainability, MDPI, vol. 13(8), pages 1-16, April.
    11. Khan, Rana Asad Javid & Thaheem, Muhammad Jamaluddin & Ali, Tauha Hussain, 2020. "Are Pakistani homebuyers ready to adopt sustainable housing? An insight into their willingness to pay," Energy Policy, Elsevier, vol. 143(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lin Zhang & Liwen Chen & Zezhou Wu & Sizhen Zhang & Huanbin Song, 2018. "Investigating Young Consumers’ Purchasing Intention of Green Housing in China," Sustainability, MDPI, vol. 10(4), pages 1-15, April.
    2. Shengqin Zheng & Ye Cheng & Yingjie Ju, 2019. "Understanding the Intention and Behavior of Renting Houses among the Young Generation: Evidence from Jinan, China," Sustainability, MDPI, vol. 11(6), pages 1-18, March.
    3. Qing He & Haiyang Zhao & Lin Shen & Liuqun Dong & Ye Cheng & Ke Xu, 2019. "Factors Influencing Residents’ Intention toward Green Retrofitting of Existing Residential Buildings," Sustainability, MDPI, vol. 11(15), pages 1-23, August.
    4. Yi Gao & Gaosheng Yang & Qiuhao Xie, 2020. "Spatial-Temporal Evolution and Driving Factors of Green Building Development in China," Sustainability, MDPI, vol. 12(7), pages 1-21, April.
    5. Hsiao-Ping Chang & Chun-Chieh Ma & Han-Shen Chen, 2019. "Climate Change and Consumer’s Attitude toward Insect Food," IJERPH, MDPI, vol. 16(9), pages 1-17, May.
    6. Md. Arif Chowdhury & Hasnat Sabrina & Rashed Uz Zzaman & Syed Labib Ul Islam, 2022. "Green building aspects in Bangladesh: A study based on experts opinion regarding climate change," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(7), pages 9260-9284, July.
    7. Chung-Te Ting & Chi-Ming Hsieh & Hsiao-Ping Chang & Han-Shen Chen, 2019. "Environmental Consciousness and Green Customer Behavior: The Moderating Roles of Incentive Mechanisms," Sustainability, MDPI, vol. 11(3), pages 1-16, February.
    8. Peidong Sang & Haona Yao & Lin Zhang & Sen Wang & Yanjie Wang & Jinjian Liu, 2020. "Influencing factors of consumers’ willingness to purchase green housing: a survey from Shandong Province, China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(5), pages 4267-4287, June.
    9. Albert Ping Chuen Chan & Amos Darko & Ernest Effah Ameyaw, 2017. "Strategies for Promoting Green Building Technologies Adoption in the Construction Industry—An International Study," Sustainability, MDPI, vol. 9(6), pages 1-18, June.
    10. Saeid Karimi & Genovaitė Liobikienė & Heshmatollah Saadi & Fatemeh Sepahvand, 2021. "The Influence of Media Usage on Iranian Students’ Pro-Environmental Behaviors: An Application of the Extended Theory of Planned Behavior," Sustainability, MDPI, vol. 13(15), pages 1-19, July.
    11. Samah Ibnou-Laaroussi & Husam Rjoub & Wing-Keung Wong, 2020. "Sustainability of Green Tourism among International Tourists and Its Influence on the Achievement of Green Environment: Evidence from North Cyprus," Sustainability, MDPI, vol. 12(14), pages 1-24, July.
    12. Diana Puspita Sari & Nur Aini Masruroh & Anna Maria Sri Asih, 2021. "Consumer Intention to Participate in E-Waste Collection Programs: A Study of Smartphone Waste in Indonesia," Sustainability, MDPI, vol. 13(5), pages 1-28, March.
    13. David T. Tan & Yi Gong & José Gabriel Siri, 2017. "The Impact of Subsidies on the Prevalence of Climate-Sensitive Residential Buildings in Malaysia," Sustainability, MDPI, vol. 9(12), pages 1-26, December.
    14. Shiwen Zhao & Liwen Chen, 2021. "Exploring Residents’ Purchase Intention of Green Housings in China: An Extended Perspective of Perceived Value," IJERPH, MDPI, vol. 18(8), pages 1-19, April.
    15. Jingyang Zhou & Yanjun Qin & Shaoze Fang, 2019. "Impacts of Consumers and Real Estate Enterprises on the Implementation of Prefabrication in Residential Buildings: The Moderating Role of Incentive Policies," Sustainability, MDPI, vol. 11(18), pages 1-17, September.
    16. Jia, Jun–Jun & Wu, Hua-Qing & Nie, Hong-Guang & Fan, Ying, 2019. "Modeling the willingness to pay for energy efficient residence in urban residential sector in China," Energy Policy, Elsevier, vol. 135(C).
    17. Edwin Chukwuemeka Idoko & Chukwunonso Oraedu & Christian Chidera Ugwuanyi & Stephen Ikechukwu Ukenna, 2021. "Determinants of Smart Meter on Sustainable Energy Consumption Behavior: A Developing Country Perspective," SAGE Open, , vol. 11(3), pages 21582440211, July.
    18. Wenxin Shen & Wenzhe Tang & Atthaset Siripanan & Zhen Lei & Colin F. Duffield & Felix Kin Peng Hui, 2018. "Understanding the Green Technical Capabilities and Barriers to Green Buildings in Developing Countries: A Case Study of Thailand," Sustainability, MDPI, vol. 10(10), pages 1-17, October.
    19. Sadaf Dalirazar & Zahra Sabzi, 2022. "Barriers to sustainable development: Critical social factors influencing the sustainable building development based on Swedish experts' perspectives," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(6), pages 1963-1974, December.
    20. Luigi Leclercq-Machado & Aldo Alvarez-Risco & Romina Gómez-Prado & Berdy Briggitte Cuya-Velásquez & Sharon Esquerre-Botton & Flavio Morales-Ríos & Camila Almanza-Cruz & Sarahit Castillo-Benancio & Mar, 2022. "Sustainable Fashion and Consumption Patterns in Peru: An Environmental-Attitude-Intention-Behavior Analysis," Sustainability, MDPI, vol. 14(16), pages 1-18, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:10:y:2018:i:6:p:1711-:d:148689. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.