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The Scientific World Journal
Volume 2013, Article ID 240394, 10 pages
http://dx.doi.org/10.1155/2013/240394
Research Article

A Financing Model to Solve Financial Barriers for Implementing Green Building Projects

1Sustainable Building Research Center, Hanyang University, 1271 Sa3-dong, Sangnok-gu, Ansan-si, Kyunggi-do 426-791, Republic of Korea
2Department of Architectural Engineering, Hanyang University, 17 Haengdang-dong, Seongdong-gu, Seoul 426-791, Republic of Korea
3Department of Sustainable Architectural Engineering, Hanyang University, 17 Haengdang-dong, Seongdong-gu, Seoul 426-791, Republic of Korea

Received 2 August 2013; Accepted 10 September 2013

Academic Editors: Y. H. Chiang, N. Ryan, and E. W. L. Cheng

Copyright © 2013 Sanghyo Lee et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

Along with the growing interest in greenhouse gas reduction, the effect of greenhouse gas energy reduction from implementing green buildings is gaining attention. The government of the Republic of Korea has set green growth as its paradigm for national development, and there is a growing interest in energy saving for green buildings. However, green buildings may have financial barriers that have high initial construction costs and uncertainties about future project value. Under the circumstances, governmental support to attract private funding is necessary to implement green building projects. The objective of this study is to suggest a financing model for facilitating green building projects with a governmental guarantee based on Certified Emission Reduction (CER). In this model, the government provides a guarantee for the increased costs of a green building project in return for CER. And this study presents the validation of the model as well as feasibility for implementing green building project. In addition, the suggested model assumed governmental guarantees for the increased cost, but private guarantees seem to be feasible as well because of the promising value of the guarantee from CER. To do this, certification of Clean Development Mechanisms (CDMs) for green buildings must be obtained.