Understanding heterogeneous consumer preferences for residential zero-energy buildings (ZEBs) in South Korea: A latent class approach

Abstract

The development of energy-efficient buildings has been deemed a critical component in accomplishing reduction targets and making cities more sustainable. Hence, governments of highly developed countries with large urban populations have set policy targets and introduce incentive schemes to expand the supply of the green buildings, which are environmentally friendly and energy-efficient over their entire lifecycle. However, the low return on investment, lack of awareness, and insufficient information and incentives have hindered the adoption of zero energy buildings (ZEBs) in the Korean housing sector. This study aimed to examine the public's heterogeneous preference structure towards residential ZEBs to identify marketing and policy implications for promoting demand. The findings showed that cost-related factors were the most significant elements affecting public acceptance of ZEBs in Korea. Additionally, the study simulated the acceptance of ZEBs as a function of subsidy levels and found that consumers are willing to pay a premium for more energy-efficient homes with greater environmental contributions and that provide long-term benefits in overall housing expenses. In all, it is recommended for the government to identify suitable regions for the implementation of ZEBs based on regional characteristics and to implement a subsidy program to achieve the goal of expanding environmentally sustainable homes.