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

Authors

  • Pornraht Pongprasert

    Department of Real Estate Business, Thammasat Business School, Thammasat University, Bangkok 10200, Thailand
  • Satapat Kanchong

    Pruksa Holding Public Company Limited, Bangkok 10400, Thailand

DOI:

https://doi.org/10.30564/jees.v7i8.10772
Received: 27 June 2025 | Revised: 29 July 2025 | Accepted: 5 August 2025 | Published Online: 11 August 2025

Abstract

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.

Keywords:

Zero Carbon Emission; Net Zero Carbon Buildings; Climate Finance; Climate Policy; Real Estate Development; Thailand

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How to Cite

Pongprasert, P., & Satapat Kanchong. (2025). Encouraging Thai Real Estate Developers Toward Net Zero: A Case Study on Factors Influencing Decision-Making in Net Zero Building Development. Journal of Environmental & Earth Sciences, 7(8), 22–35. https://doi.org/10.30564/jees.v7i8.10772

Issue

Vol. 7 , Iss. 8 (August 2025): In Progress

Article Type

Article

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Copyright © 2025 Pornraht Pongprasert, Satapat Kanchong

Creative Commons License

This is an open access article under the Creative Commons Attribution-NonCommercial 4.0 International (CC BY-NC 4.0) License.

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