Obstacles to green building project financing: an empirical study in Ghana

Agyekum, Kofı; Opoku, Alex; Oppon, James Anthony; Opoku, De-Graft Joe

doi:10.1080/15623599.2020.1832182

Cited by 28 publications

(32 citation statements)

References 36 publications

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“…In the view of Darko et al (2017a, b), this factor is a critical driver for implementing green building technologies worldwide. Agyekum et al (2020a, b) also identified this factor as an essential driver of green building certifications in Ghana. In confirmation of that postulated by Ross (2015), the Ernest and Young (EY) group indicated that one of the significant drivers of issuance of green bonds by companies is to enhance their brand as an environmentally conscious organisation (EY, 2015).…”

Section: Literature Reviewmentioning

confidence: 95%

“…Though these opportunities in the various sectors were well reported by Partnership for Action on Green Economy, PAGE (2015), little was said regarding green financing opportunities for the building construction sector. A study conducted by Agyekum et al (2020a, b) reveals that the building construction sector encounters some obstacles when it comes to green building project financing. The key blocks were identified to include split incentives, risk-related barriers, capital expenditure, lack of incentives and initial capital cost.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Like many developed and developing countries, the Ghanaian construction industry has now appreciated the need to contribute its effort to achieve the sustainable development agenda by adopting green building practices. However, Ghana's green or sustainable movement is still in its infancy (Agyekum et al , 2019, 2020a, b). Though there have been efforts to certify several buildings springing up in Ghana, most sustainable projects are still at their initial stages.…”

Section: Introductionmentioning

confidence: 99%

“…When pushing for the adoption of more sustainable building projects, it is critical to discuss financing, especially the potential financial drivers or enablers and obstacles. Recently, Agyekum et al (2020a, b) examined the critical challenges to green building project financing in Ghana.…”

Section: Introductionmentioning

confidence: 99%

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Key drivers for green building project financing in Ghana

Agyekum

Goodier

Oppon

2021

ECAM

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PurposeThe majority of the literature on green buildings in Ghana focuses on environmental benefits, innovative designs, construction technologies and project management techniques. However, little is known about how such facilities are financed. This issue creates potential knowledge gaps, one of which this study aims to address. This study examines the key drivers for green building project financing in Ghana.Design/methodology/approachThe study uses an explanatory sequential design with an initial quantitative instrument phase, followed by a qualitative data collection phase. An extensive critical comparative review of the literature resulted in the identification of eight potential drivers. One hundred and twenty-seven questionnaire responses based upon these drivers from the Ghanaian construction industry were received. Data were coded with SPSS v22, analysed descriptively (mean, standard deviation and standard error) and via inferential analysis (One Way ANOVA and One-Sample t-Test). These data were then validated through semi-structured interviews with ten industry professionals within the Ghana Green Building Council. Data obtained from the semi-structured validation interviews were analysed through the side-by-side comparison of the qualitative data with the quantitative data.FindingsThough all eight drivers are important, the five key drivers for the Ghanian construction industry were identified as, in order of importance, “high return on investment”, “emerging business opportunity”, “ethical investment”, “conservation of resources” and “mandatory regulations, standards, and policies”. The interviewees agreed to and confirmed the importance of these identified drivers for green building project financing from validating the survey's key findings.Research limitations/implicationsKey limitations of this study are the restrictions regarding the geographical location of the collected data (i.e. Kumasi and Accra); timing of the study and sample size (i.e. the COVID-19 pandemic making it difficult to obtain adequate data).Practical implicationsThough this study was conducted in Ghana, its implications could be useful to researchers, policymakers, stakeholders and practitioners in wider sub-Saharan Africa. For instance, financial institutions can invest in green buildings to expand their green construction and mortgage finance products to build higher value and lower risk portfolios. The findings from this study can provide investors with the enhanced certainty needed to help guide and inform their investment decisions, i.e. what to invest in, and when, by how much and how a scheme being “green” may influence their rate of return. Also, for building developers, it will give them a clearer understanding of the business case for green buildings and how to differentiate themselves in the market to grow their businesses.Originality/valueThis study's findings provide insights into an under-investigated topic in Ghana and offer new and additional information and insights to the current state-of-the-art on the factors that drive green building project financing.

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Section: Literature Reviewmentioning

confidence: 95%

Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Key drivers for green building project financing in Ghana

Agyekum

Goodier

Oppon

2021

ECAM

Self Cite

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“…Like other sectors, the construction industry is noted for its contribution to the greenhouse gas emissions [71]. This notwithstanding, there have been numerous efforts put in place by various sectors to control such emissions.…”

Section: Sustainable Cities and Communities (Sdg 11)mentioning

confidence: 99%

The Critical Role of the Construction Industry in Achieving the Sustainable Development Goals (SDGs): Delivering Projects for the Common Good

et al. 2021

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In 2015, the United Nations (UN) adopted the 2030 agenda for Sustainable Development, which set out 17 Sustainable Development Goals (SDGs), 169 targets and 231 unique indicators as a significant initiative towards socio-economic development. The SDGs provide the construction industry with a new lens through which global needs and desires can be translated into business solutions. This paper explores the role of the construction industry in achieving the 2030 Sustainable Development Goals. The paper uses an explanatory sequential design with an initial quantitative instrument phase, followed by a qualitative data collection phase. Following a comparative review of the literature on the 17 SDGs, a questionnaire was designed and administered among 130 respondents, and 105 responses were received. These data were then validated through semi-structured interviews with 16 sustainable construction experts. Data obtained from the semi-structured validation interviews were analysed through side-by-side comparisons of the qualitative data with the quantitative data. The findings show that the construction industry has a critical role in achieving almost all the 17 SDGs. The roles were, however, prevalent in 10 key SDGs, namely: sustainable cities and communities (SDG 11); climate action (SDG 13); clean water and sanitation (SDG 6); responsible consumption and production (SDG 12); industry, innovation and infrastructure (SDG 9); life on land (biodiversity) (SDG 15); gender equality (SDG 5); good health and well-being (SDG 3); affordable and clean energy (SDG 7); decent work and economic growth (SDG 8). The study confirmed the role played by the construction industry in achieving these SDGs. The findings from this study provide further insights into the ever-increasing state-of-the-art regarding the construction industry’s role in achieving Sustainable Development Goals.

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The influence of industrial attitudes and behaviours in adopting sustainable construction practices

Maqbool

Saiba

Altuwaim

et al. 2022

Sustainable Development

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Considering the rapid environmental changes, the transitions to sustainable practices in the construction industry is vital now. Though the developed construction industries have already made efforts to switching to more sustainable and environment friendly practices, the developing countries are still lacking it. This research was organised to understand the role of project management practises and integrated methods in the sustainable development in the developing countries, for looking on how such practices can help these construction sectors become sustainable. The moderation effect of industrial attitudes and behaviours on sustainable construction was also conducted to understand the intermediary impacts. A survey based on the snowball sample of 208 construction professionals in Ghana was conducted to determine the impact of project management practises and integrated methods on sustainable construction. Research model was tested by employing bivariate correlation and multiple hierarchical regression analysis techniques, to establish the interrelationships among the project management practices, integrated approaches, industrial attitudes and behaviours, and sustainable construction and to explain these constructs in terms of their common underlying dimensions. The findings highlight that the project management practices and integrated approaches are significantly impacting on the sustainable construction practices in terms of BIM, Digital Twin, LEED, and BREEAM.Whereas the industrial attitudes and behaviours were found to be affecting the project management practises and integrated approaches through moderating role on sustainable construction. The study was concluded by suggesting the importance of sustainable construction practices and shaping industrial attitudes and behaviours towards such practices in the developing construction industries.

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Obstacles to green building project financing: an empirical study in Ghana

Cited by 28 publications

References 36 publications

Key drivers for green building project financing in Ghana

Key drivers for green building project financing in Ghana

The Critical Role of the Construction Industry in Achieving the Sustainable Development Goals (SDGs): Delivering Projects for the Common Good

The influence of industrial attitudes and behaviours in adopting sustainable construction practices

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