Research on the Government Incentive of Green Buildings in China

This article carry on depth analysis on the four main factors which restricting the development of green buildings in China, and on this basis put forward that governments need to establish and improve incentives to promote the green building market prosperous. To make the incentive policy, the government should clear with its long-term and short-term incentive goals, and grasp the incentive-degree. This paper establish a model based on the fundamental point of principal-agent theory, combined with a concrete project, this model can calculate the best degree of the government incentive intensity to make the whole society to achieve Pareto-optimal returns.