Evolutionary Game Analysis of Green Loans Program to Achieve the National Carbon Emissions Reduction Target in South Korea
Publication: Journal of Management in Engineering
Volume 38, Issue 3
Abstract
The green loans program has continued to attract attention as an effective measure for promoting green retrofit to reduce energy consumption in old buildings. Various external factors negatively affect the decision-making process for the government and building owners. In particular, it is unclear how incentives and penalties take effect and to what extent they can influence the green loans program. Therefore, this study identified the influence of political factors, such as loan support and carbon taxation, on the strategic choices of the government and building owners. The results of this study showed that (1) as the supporting interest rate increases, both government and building owners are more likely to select a positive strategy; (2) as the carbon tax rate increases, both government and building owners are more likely to select a positive strategy; and (3) if the maximum supporting interest rate of 4.45% is applied, the greenhouse gas (GHG) emission reduction effect can be increased by about 3–5 times from the current level. It is not easy to achieve the national carbon emission reduction target for 2030 and 2050 only through green retrofitting of old buildings under the green loans program. Therefore, the government should develop an additional research and development budget and encourage developers to enhance the efficiency of green technologies.
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Data Availability Statement
Some of all data, models, or code that support the findings of this study are available from the corresponding author upon reasonable request.
Acknowledgments
This work was supported by the National Research Foundation of Korea (NRF) grant funded by the Korean government (MSIT; Ministry of Science and ICT) (NRF-2021R1A3B1076769).
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Journal of Management in Engineering
Volume 38 • Issue 3 • May 2022
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© 2022 American Society of Civil Engineers.
History
Received: Oct 30, 2021
Accepted: Jan 7, 2022
Published online: Mar 10, 2022
Published in print: May 1, 2022
Discussion open until: Aug 10, 2022
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