Market expectations and policy deficiencies in the promotion of building energy efficiency in China

Purpose – Future energy consumption in China's building sector will have a considerable influence on both China and the world's energy markets. Although the Chinese government has set out a series of policies to promote building energy efficiency (BEE), the BEE market share remains small. The paper aims to identify the key policy deficiencies that affect such promotion. Design/methodology/approach – Based on the defined roles played by the government, this paper traces the path that China's BEE policies have taken since the 1980s and highlights the key problems. To understand how the Chinese government's BEE policies meet the expectations of market stakeholders, the paper employs data from a questionnaire of building design professionals in the country's major cities to identify the most favourable factors for and existing hurdles to the promotion of the BEE market. Findings – The Chinese government needs to exert greater effort towards overcoming the deficiencies in its roles as policy maker, fiscal hub and advocate. At this stage, China would benefit more from legal and government intervention than from heavy reliance on voluntary schemes for BEE promotion. Practical implications – The paper shows that both the government and industry need to become better informed of the conditions required to attract market parties towards the promotion of BEE. This study also identifies the main concerns involved, thus providing a strong foundation for further study in this arena. Originality/value – This paper highlights the mismatch between market expectations and government policies aimed at BEE promotion in China. It fills the knowledge gap between market stakeholders and government for future policy design concerning BEE promotion.