Transaction Cost and Agency Perspectives on Eco-Certification of Existing Buildings: A Study of Hong Kong

Eco-certification schemes are usually launched with various incentives provided by local governments to facilitate green building development and energy retrofits. A number of barriers retrofitting have been identified in previous literature, while the eco-certification existing buildings under-researched. Drawing on a set data retrievable from BEAM Society other sources, we carried out an analysis found retrofitting, as well certification process, were unwelcomed multi-owned residential buildings. The shortfall is put forward perspectives transaction cost theory agency theory. findings reveal that high costs incurred during negotiations coordination among large co-owners within typical apartment can outweigh benefits eco-certification. Besides, remuneration structure third-party property management agents discourages facilitating initiate retrofitting. This study provides significant implications for policymakers understand concerns owners managers over decisions processes both retrofits problems unveiled this will refining current efficiency policies related designs.