Encouraging Thai Real Estate Developers Toward Net Zero: A Case Study on Factors Influencing Decision-Making in Net Zero Building Development

The concept of Net Zero Carbon Buildings, which aims to reduce greenhouse gas emissions, is essential in addressing climate change. However, the development of such buildings in Thailand faces significant challenges, including high construction costs, uncertain returns, and limited investment incentives. This study explores the factors influencing real estate developers' decisions to pursue Net Zero Carbon Buildings in Thailand, with a focus on physical, financial, and policy-related elements. Data collection was done with 388 respondents who are stakeholders, including developers, consultants, designers, and sustainability experts, through an online questionnaire, and analyzed using Multiple Regression Analysis. The independent variables in the analytical model consist of three groups of factors: physical buildings, climate finance, and climate policy. The results indicate that physical building factors, including building age, engineering systems, and design; climate finance factors, such as project cost increases, financial returns, and investment incentives; and climate policy factors, including government policies, international climate agreements, and carbon taxes, significantly influence development decisions. Government policies, building engineering systems, and financial incentives were identified as key positive drivers for investment, while carbon taxes and energy efficiency-focused designs were found to potentially discourage investment due to higher costs. The study concludes that substantial government support such as tax incentives, grants, and low-interest financing is critical to fostering investment in Net Zero Carbon Buildings. Additionally, raising awareness among developers and the private sector about the long-term benefits of these projects is essential to strengthening investment incentives.