Study on the economic externality of green building

This paper presents a deep analysis on the barrier of green building growing with the theory of economic externalities. Through analyses of the relation between the degree of green technology usage with the marginal revenue and marginal cost, a conclusion is drawn that the gap between social revenue and the private revenue will grow when the usage of green technology is becoming more. A Green building rating system is advanced and policy options designed to “internalize” these externalities according to these levels are briefly addressed.