determine the most appropriate mix of policy instruments, considering regulatory and control mechanisms, economic or market-based instruments, fiscal instruments and incentives, as well as information and voluntary action. Considering in particular the hidden costs and market-failure barriers the building industry faces, analysis of cases world-wide suggests that regulatory and control measures are likely to be most effective and cost-efficient when adequately implemented. This is particularly the case in developed countries.
Regulatory and control instruments can be combined with other instruments for greater impact, considering local realities such as the level of development of the local market and income-level of households involved. Among fiscal instruments, tax exemptions appear to be the most effective, while subsidies, grants and rebates can achieve high energy savings in developing countries by helping organisations or families overcome upfront investment or first-cost barriers. Examples from Brazil and Thailand have shown high cost-benefit ratios in the use of subsidies and grants to support energy efficiency improvements, combined with mandatory audits, awareness raising, training and demonstration to build capacity and trust in the use of new technologies.
A particular challenge in developing countries, at the same time, is doing away with subsidised, non-cost- reflective energy prices.
Facing global demand for more and better housing and facilities, governments at all levels can lead by example through public procurement and green housing schemes:
Finally, governments can set a leadership example by using public procurement in the construction and management of their facilities to drive the greening of the building sector. Experience from Mexico and China has shown how energy-efficiency improvement programmes in the public sector can also be boosted by the immediate pressure of high energy prices and energy shortages. Public assets, be they in the form of government buildings, hospitals or schools, hold wide-ranging opportunities of greening measures that result in a more efficient use of resources,
reduced
GHG emissions, improved productivity and avoided illness resulting from indoor air pollution. In addition, government-supported social housing schemes provide an opportunity to combine socio-economic and environmental gains in designing and building single or multi-family homes.