The paper "The Role of Improved Energy Efficiency in Buildings in Contributing Sustainable Development" is an outstanding example of a management literature review. According to Popescu et al. (2012, p. 554), the key goal of energy policies is to make every social level, from citizens to governments, concerned in heightening the buildings’ energy efficiency. I have noted that one of the main hurdles in the execution of energy policies is that the outlay of possible energy savings, on average measured as being the just financial benefit, fails to adequately inspire investments.
Hence, the target is to recognize additional potential drivers pushing positive response in line with energy-saving action. I concur with Popescu et al. (2012) argument that improvements to the buildings’ energy efficiency are decelerated when costs of energy are an extremely diminutive fraction of the owner/resident’ s revenue. According to Sev (2009, p. 162), energy policies can be much better if the tangible gains would turn out to be substantial, using drivers of the market instead of only legislation. I deem Popescu et al. (2012, p. 457) solution is the most suitable; they suggest that owners and residents motivation can take place by utilizing a market-driven rationale, like higher prices for buildings that have undertaken measures for energy efficiency. Investments cost in measures for energy efficiency according to Morrissey and Horne (2011, p. 916) could be much in excess of the additional amount of money that may be gained in case of a business deal.
The market value is defined by the International Valuation Standards as the approximate amount for which a property must exchange on the valuation date involving a willing seller as well as a willing buyer in a length business deal of an arm subsequent to appropriate marketing wherein parties had each acted capably, discreetly, and devoid of pressure.
Simply, the supplementary value owing to energy performance relies heavily on the willingness to pay extra for having a building that is energy efficient. I observed in Australia, nationwide laws for minimum building performance standards were set up in 2003, reinforced in 2006, and are were further reinforced for 2011, but such standards are somewhat feeble as compared to European standards.
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