Modelling the effects of green building incentives and green building skills on supply factors affecting green commercial property investment

The aim of this study is to identify and model the motivating factors that influence developers' and investors' decisions to invest in green commercial properties using structural equation modelling methods. Precisely, the study modelled the effects of monetary green tax incentives and green building skills on supply factors affecting green commercial property investment. The study was based on a survey of 350 real estate developers, and investors in Malaysia and the model was validated for reliability and validity. The structural equation modelling indicated that monetary green tax incentives and green skills have significant causal effects on supply. Among these factors, life cost saving motivations, government policies, green certification, developers' expected rate of return motivations, and market strategy benefit motivations were significant. Monetary green tax incentives were, however, found to have the most significant effect on green commercial property supply and investment.