Building Incentive Structure in the Context of Green Building Implementation: From the Local Government Perspective

1 Department of Civil Engineering, Faculty of Engineering, Universitas Indonesia, Kampus UI Depok, Depok 16424, Indonesia 2 Laboratoire d’Automatique de Mécanique et d’Informatique industrielles et Humaines, Université de Valenciennes et du Hainaut-Cambrésis, Le Mont Houy 59313, Valenciennes Cedex 9, France 3 Department of Infrastructure and Territorial Technology, Institut Teknologi Sumatera, Lampung 35365, Indonesia


INTRODUCTION
Green building is an eco-friendly building concept considered able to counter the negative impact of building on the sustainable environment both now and in the future. At the beginning of the development of the green building concept, there are relatively many challenges, especially to start the adjustment from the conventional concept to the green building concept by building stakeholders. Therefore, some developed countries in the buildings development process using the green building concept have the idea to accelerate the process of introducing and adapting building stakeholders to the green building concept by providing incentives. Some countries in Asia that have successfully applied incentives to green building stakeholders, such as Hong Kong, Singapore, and Malaysia, are shown in Table 1. There are three incentive models to promote the development of green buildings, particularly in Asia, such as Gross Floor Area (GFA), property tax, and both (GFA and tax). As the fourth ranked in the construction industry in Asian countries, Indonesia is significantly far behind compared to some neighboring countries in terms of green building growth. The average growth of green building in Indonesia is three buildings per year or 23 building in total, consisting of 17 Greenship-certified buildings, two Green Mark-certified buildings, three LEED-certified buildings, and one building certified as both Greenship and Green Mark. Green building implementation is known as an integrating process that consists of building design, construction, operation, maintenance or renovations, and recycling or demolition by considering environmental conditions. It means that the processes care about human health and comfort and the sustainability of natural resources through environmental efficiency and conservation programs. Therefore, creating a good incentive model in developing countries to accelerate green building concept implementation, particularly in Indonesia, should involve paying attention to key success factors of green building implementation. There are four key success factors in green building implementation, such as sustainability, efficiency, comfortability, and manageability. Furthermore, green building implementation factors are developed based on the context of infrastructure development, such as regional policies, economic uncertainty, knowledge level, and environment development.
This study aims to observe the effect of building development factors in general on the implementation of the green building concept. Infrastructure investment planning affects the sustainability of the green building concept because building life cycle costs are part of the economic uncertainty concept assessed through technological developments and economic growth value. However, to maintain the availability of resources and reduce emissions requires relatively high financing. Based on these literature findings, the following can be hypothesized: H1: The uncertainty of economic growth negatively influences the sustainability of green building implementation.
H2: The uncertainty of economic growth positively influences the comfortability of green building implementation.
Environmental development significantly influences the ability to improve the efficiency and effectiveness of buildings by saving energy, reducing water use, and decreasing the amount of construction waste. Previous research has shown that 60-90% of human life is spent in buildings; in addition, technology development potentially increases the occupancy rate. Therefore, research on increasing the efforts toward occupant comfort for both building users and the building environment has shown relatively high interest today. Building on these arguments, it is hypothesized that: H3: Environmental development positively influences the efficiency of green building implementation. H4: Environmental development positively influences the comfortability of green building implementation.
Building knowledge aspects affect the sustainability of buildings and the ability to obtain green building certification. Improving knowledge of the concept of environmental friendliness indirectly stimulates the entire community and governments of the world to invest in sustainable development and innovation, specifically in terms of building construction and mitigating the impact of climate change through the green building concept. The application of information systems in building simplifies the management of such buildings. As governments seek to balance economic growth with the negative impacts of these developments on the environment, scientists have sought an information system to control these impacts. Accordingly, this study posits that: H5: Knowledge improvement positively influences the sustainability of green building implementation. H6: Knowledge improvement positively influences the manageability of green building implementation.
Regional policy is a form of government or authority in building responsibility toward environmental conditions in the region. Such policies can be in the form of limits on the value of the efficiency of certain resources in buildings and of standard building limits in general. In China, the relatively rapid growth of buildings is not accompanied by a regional policy for the management of buildings, so 28% of the energy produced in China is used only for building operations, which decreases environmental sustainability, i.e., generating 50% of the total carbon emissions in China. In 2000, the Chinese State Government began to develop environmentally friendly policies through research funded directly by the Chinese Government. By 2015, China has reduced energy use by 16% and reduced carbon emissions by 17%. Furthermore, China's policy direction is to continue toward the target of 30% energy-efficient building usage by the year 2020. The assessment indicators for regional aspects in several countries of the world include the amount of energy savings, emission reductions generated, water savings, and satisfaction with building occupants. Consistent with the literature, this study therefore postulates that: H7: Regional policy positively influences the efficiency of green building implementation. H8: Regional policy positively influences the manageability of green building implementation.
Economic conditions affect the availability of investors in the infrastructure sector. The description of this condition can be predicted through a feasibility study before the employment contract begins with consideration of economic stability. The main functions of this feasibility study enable both internal and external reviewed of weaknesses and strengths in the project development. Some aspects of economic feasibility studies include economic value evaluation, financial aspect assessment, risk assessment, and data collection of issues of environmental development and social conditions of society (Bause, Radimersky, Iwanicki, & Albers, 2014). Based on these literature findings, the following can be hypothesized: H9: The uncertainty of economic growth negatively influences the sustainability of green building implementation.
Some of the literature on green building incentives proves that incentives for project owners, both developers and building owners, are an attraction that can benefit green building stakeholders. In general, the provision of internal incentives depend on the users and building management (internal stakeholder), while external incentives are generally managed according to government policies or regional authorities. However, in the future, buildings can acquire many internal incentives, even when external incentives are reduced or discontinued. Based on the literature above, some hypotheses concerning incentive implementation in green building are stated as: H10: The sustainability of green building implementation positively influences the incentive model. H11: The efficiency of green building implementation positively influences the incentive model. H12: The comfortability of green building implementation positively influences the incentive model. H13: The manageability of green building implementation positively influences the incentive model.

METHODS
This study used the qualitative and quantitative methods to develop a survey process to address the local government perspective on the green building incentive model, particularly in the capital city of Indonesia. Based on the literature review above, five variables (economic uncertainty, environment development, knowledge improvement, regional policy, and green building implementation) are observed in this study, and 40 variable indicators are specified. After, semi-structured interviews were conducted to allow green building experts in Indonesia the freedom to engage actively in sharing their views on their own terms. Six experts have been successfully interviewed, consisting of green building council members, green building practitioners, and academics, to validate this research constructively.
This second part, a pilot study, was applied at the beginning of the implementation of the quantitative method through the distribution of a structured self-administered questionnaire to 30 respondents as the minimum number of data processes in the partial least squares structural equation modeling (PLS-SEM) operation (Chin, 1998). All measures were rated on a six-point Likert-type scale, ranging from 1 (very low effect) to 6 (very high impact) without a moderate option. After the pilot study and validation process, a structured selfadministered questionnaire was distributed to 36 members of three local government services in the capital city of Indonesia who are responsible for mandatory green building policies and implementation, such as One Stop Integrated Service and Investment Service, Human Settlements Service, and Public Housing Service. Data were collected mostly from the staff of the Capital City of Indonesia, which focuses on three services with responsibility for being the first and only region in Indonesia to implement the green building concept. Out of 40 distributed questionnaires, 36 operating responses were obtained, representing a 90.0% response rate for all respondents.

DEMOGRAPHIC INFORMATION
Based on the received questionnaire, Table 2

DATA ANALYSIS
This paper aims to examine and establish the purposes and impact of green building implementation on creating an incentive structure from the local government perspective. The PLS-SEM procedure was applied for the analyses of the proposed study model using the SmartPLS 3.0 software. According to previous research, PLS-SEM analysis procedures are implemented a twostages, the first method of analysis to test the measurement model that serves as a tool of validity and reliability test. The second stage of this analysis procedure is the structural model analysis that the function conduct the hypothesis testing.
SEM is a second-generation multivariate data analysis technique useful for theoretical model structures with "high complexity but low theoretical information". SEM is a method that researchers can analyze the relationship of variables in visualization things. The benefit of this method is in the data character such as nonnormal data, small sample sizes and uses formative indicators. On the other hand, this method is easier in implementation even it run in a complex model structure. In addition, SEM is recommended for the research with minimum data adequacy and data heterogeneity.

MEASUREMENT MODEL
The measures for latent constructs in reliability and validity were implemented in two phases.
The first phase of the convergent validity and discriminant validity analysis was checked by using the data from the pilot study. Based on the test of load factor and average variance extracted (AVE) values, eight construct indicators must be eliminated because they are below the parameter limit value specified in Table 5.4. The eight indicators are Effi3, KSE1, KSE2, KSE5, RP1, Sust1, TK4, and TMI7. In total, 32 of the 40 variable indicators were analyzed in the second phase.

RELIABILITY ANALYSIS
The reliability of the latent construct is tested by a comparison of the amount of Cronbach's composite reliability and alpha values, where both values must be greater than 0.70. Table 3 indicates that the Cronbach's alpha and composite reliability values for all constructs surpassed the threshold value of 0.70, except "sustainability," thereby establishing strong reliability among the measures, but not for "sustainability." However, this construct could not be deleted automatically before the validity test was conducted.

CONVERGENT AND DISCRIMINANT VALIDITY
Means of standardized factor loadings and AVE are examined for convergent validity with a bootstrapping analysis of 500 subsamples. The result demonstrated that the standardized loadings of all measurement items, as presented in Table 3, were greater than of 0.60, with no cross-loadings, except indicators "Sust3".
In total, 15 of the 36 significant variable indicators (p<.001) had a strong confirmation of convergent validity, and the measurement items were well loaded on their own constructs. In addition, convergent validity was also achieved when the AVE values of each construct in the model were found to be larger than 0.50. Table 4 shows the results of a discriminant validity examination by comparing the shared variances between factors with the individual factor AVE. All shared variances between factors in the model were lower than the square root of the individual factor AVE, confirming the satisfactory discriminant validity and that the constructs were both conceptually and empirically dissimilar from each other. Indeed, all associations between the 10 constructs are below 0.70, postulating that there are two constructs in which the appropriate degree of discriminant validity is not achieved. An internal incentive was found to have the strongest correlation with sustainability in green building implementation (r = 0.551, p<0.01), followed by knowledge improvement (r = 0.331, p<0.01) and regional policy (r = 0.222, p<0.01). Thus, each factor was statistically distinct.
The goodness of fit (GoF) index for this study was 0.364, which indicates a large index (GoF > 0.36) and which shows the model has better explaining power in comparison with the baseline above-defined values. Thus, the model provides adequate support to validate the PLS model globally.  were found to be insignificant, as depicted in Table 5.

CONCLUSION
This study's findings provide some important practical implications for research and green building implementation. Notably, this research confirms that resource efficiency is the most critical factor that could sway green building incentive modelling. Consequently, the government should provide an external incentive formulation to anticipate environmental development. The application of the green building concept to determine the form of incentives is considered based on the categories of buildings, the effectiveness of buildings, the level of importance of incentives in a region, and strategies undertaken to maintain the sustainability of concept implementation. The previous case study provides a relatively large incentive in the early stages of development in that it aims to introduce and to awaken the use of this concept among building stakeholders. Ensuring the sustainability of this concept's implementation, building stakeholders must consider building comfort. In fact, building comfort has a high effect on sustainable economic growth, which a regional community welfare indicator, because it can support all levels of society. In addition, building has a responsibility to ensure energy availability and carbon emission reductions by using the most effective and efficient technology.

ACKNOWLEDGEMENT
The authors wish to acknowledge the green building networking by Green Building Council Indonesia and the Government of Indonesia, as well as the financial support from the Doctoral Dissertation Research (PDD) 2018 Program of the Indonesian Ministry of Research, Technology, and Higher Education no. 1996/E3.4/UND/2018.