Research On Green Residences' Pricing Models Under Financial Incentives

Along with the economic development,the greenhouse gases emission has caused a lot of troubles to the climate change.According to the fifth report of the Intergovernmental Panel on Climate Change,the construction department used 32 percent of the last emerge consume in 2010 and it is expected that it will add 50 percent to 150 percent in 2050.The green building uses the natural energy effectively and it can reduce the use of the unnatural energy and the carbon emission.At the present,Chinese government promulgates financial incentive policies to promote the development of the green building.According to these policies,we design functions to express it.Based on the traditional residences' pricing strategies,we add the green level as developers' decision variable and study how incentive policies affect developers' pricing strategies and consumers' purchasing choices.Considering that there are some cities that have less people and more space in which the land source supply can satisfy the demand and others are converse,we study in two conditions:one is that the supply can satisfy the demand and the other one can't.First,when the supply can satisfy the demand:1.We study how a single developer makes pricing strategies according to the incentive and the demand.We find that it has a best pricing strategy to get the biggest profit in the market.2.We study how double developers make pricing strategies according to the incentives and the demand to compete with each other.We find(1)Only one makes a pricing strategy at the first,the other one can make a best pricing strategy to get the biggest profit in the market.(2)The two can make a pricing strategy to get the biggest profits in the market to win-win.Second,when the supply can't satisfy the demand:1.We study how a single developer makes pricing strategies according to the incentive and the demand.We find(1)It has a best pricing strategy to get the biggest profit in the market.(2)Its green level strategy is not related with the developers' incentive and is related with the consumers' incentive.2.We study how double developers make pricing strategies according to the incentives and the demand to compete with each other.We find(1)The two can make a pricing strategy to get the biggest profits in the market to win-win.(2)Their green level strategies are not related with developers' incentive and are related with the consumers' incentive.(3)When the two have the same biggest supply and the same green technology,their green level strategies are the same too.Third,in the conditions discussed above,we study how consumers make purchasing choices according to the price,the green level and the incentive.We find that consumers will evaluate the residences and choose the one that has a more consumer utility surplus and the surplus is over zero.In addition,we choose a case to simulate the developer's pricing strategies and consumers' purchasing choices in which a developer has constructed a green residence project in Xiamen city,Fujian province.