Rapid urbanization and population growth have led to a tripling of global building material consumption since 2000. This has increased the need for effective mitigation measures.
Government policies can have an influence on building material choices. They can help on both the supplier side (subsidies) and consumer side (tax credits). Moreover, it is important to consider the impact of the backward linkages as well.
Taxes
The construction sector has a high backward linkage with the production of building materials and components. Therefore, a country needs to develop its local supply industries in order to increase value add. Many studies have shown that the backward linkage in construction is significant and can account for up to 55% of total value added (Drewers, 1980; Wells, 1986).
Government policies can influence the price of different types of building materials. For example, governments can subsidize low-emission building materials or restrict the use of low-grade materials based on their environmental impact. They can also control the prices of construction materials by changing the import duties and taxes. In addition, they can encourage the development of the construction industry through public investments and fiscal policies. Governments may also regulate the wages and employment regulations in the construction industry (Ofori, 1994; Miles & Neale, 1991).
Economic recessions can have profound effects on the construction sector. Several studies have linked the duration and severity of economic downturns with changes in demand for buildings. For instance, a study by Teh and Sua found that the number of construction firms that applied for cessations during the 1997 Asian financial crisis rose by 49%. Similarly, the number of new projects awarded to construction companies declined by 29%. A contraction in the economy can cause construction firms to lose money, leading to a reduction in investment and hiring.
Subsidies
Subsidies are payments or tax breaks that a government gives to industry in order to help them compete with non-subsidized competitors. They are often given to those industries that the government considers critical parts of its economy or national infrastructure. These subsidies can be used to encourage the production of goods that are in the national interest, as well as to help consumers buy those goods.
Governments can use a variety of policies to encourage building renovation, including subsidies, rebates, and incentives. However, a comprehensive reform strategy is needed to ensure that the policies do not crowd out more efficient and equitable public spending. Governments should also use a combination of measures to increase consumer awareness and reduce free-riding.
The results from the focus groups suggest that the most effective measure for reducing free-riding is to promote higher quality perceptions among consumers. Higher quality perceptions will lead to a higher demand for prefabricated construction and reduce the need for government-backed subsidy schemes. This can be achieved through a differentiated subsidy mechanism, which varies according to consumer quality perceptions.
Regulations
The construction industry has strong backward linkages to a variety of other industries. For example, if the construction industry expands, it can stimulate the growth of basic industries such as cement and steel manufacturing. This can lead to a significant increase in the value added by the construction industry (World Bank, 1984). Moreover, it can also affect the economy through indirect effects such as increased consumption of raw materials and manpower.
In recent years, many governments have started implementing policies and regulations that require buildings to be more energy efficient. This has forced builders to look for sustainable building materials and systems that can help them reduce their carbon footprint. These include insulation, renewable energy systems and low-carbon heating systems. These changes are expected to save money in the long run and reduce waste.
Another factor that influences the choice of building materials is the availability of raw materials and the technology used to produce them. Developing countries may not have the resources to produce all the building materials they need, so they need to import them from the developed world. This can be expensive and has negative environmental impacts.
In addition, many building materials are considered hazardous to the environment, and it is important to find eco-friendly alternatives. To do this, it is important to research the full range of options available to you. This includes manufacturers’ information such as Material Safety Data Sheets, indoor air quality test results, product warranties and recycled content data.
Competition
There are many different building materials on the market, and each one offers a set of tradeoffs that must be taken into account during the design-decision process. For this reason, architects often find themselves overwhelmed by choice and have difficulty finding a solution that suits both their project objectives and the budget. Fortunately, there are some methods to streamline the selection of green vernacular building materials. By analyzing frequency data, this article looks at how different factors influence architects’ choices during the material-selection process.
In the case of building materials, government policies can directly impact supply and demand by fixing prices and providing subsidies. These policies can also restrict the import of certain building materials to protect local industry. They can do this by changing the rates of taxes, tariffs, and quotas on these materials or by encouraging or disincentivising the construction industry’s use of these materials (Ofori, 1990).
Moreover, the price level of building materials is heavily dependent on the availability and quality of raw materials. The availability of raw materials depends on the geological location of the country, the technology used in the extraction and processing of these raw materials, and the environmental impacts incurred by the production process. This has led to the establishment of national agencies that are responsible for the monitoring and management of these issues.