Policy deficiencies in promoting building energy efficiency in mainland China

Kun Qian, Jin Wu, Hon Wan Edwin Chan

Research output: Chapter in book / Conference proceedingConference article published in proceeding or bookAcademic researchpeer-review

9 Citations (Scopus)


China has set sustainable development as one of its basic national policies. Because energy consumption in the construction industry accounts for a distinct part of the total social energy consumption, it attracts more attention than before. Many laws, ministry regulations, construction standards related to construction energy efficiency have been set in recent years. However, data from recent official investigations shows that most construction activities in mainland China, both new buildings and existing ones, do not meet the energy efficiency requirements. This paper analyses the reasons from three aspects, all of which are related to public regulations. First, the pricing mechanism and supply system of energy remain a strong characteristic of a planned economy. This non-market orientation weakens consumers' attention to energy consumption expenditure, which discourages them to buy the high-price energy-efficient buildings. Second, in a flourishing real estate market, the developers have no economic incentives to provide the high-cost energy-efficient buildings; also, they do not have such pressure from public regulations. Third, the information asymmetry in the energy-efficient building market leads to a Lemon Market. The study also identifies other deficiencies in the policy mechanism, especially the legal system, to promote building energy efficiency in Mainland China.
Original languageEnglish
Title of host publicationProceedings of CRIOCM 2006 International Research Symposium on Advancement of Construction Management and Real Estate
PublisherChinese Research Institute of Construction Management
Number of pages9
ISBN (Electronic)9623675364
Publication statusPublished - 1 Jan 2006
EventInternational Research Symposium on Advancement of Construction Management and Real Estate, CRIOCM 2006 - Beijing, China
Duration: 3 Nov 20065 Nov 2006


ConferenceInternational Research Symposium on Advancement of Construction Management and Real Estate, CRIOCM 2006


  • Energy-efficient Building
  • Information Asymmetry
  • Market Orientation
  • Policy Mechanism

ASJC Scopus subject areas

  • Strategy and Management
  • Urban Studies
  • Architecture
  • Business and International Management
  • Building and Construction

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