A System Dynamics Model of Sustainable Construction for High rise Residential Projects in Developing Countries: Case of Indonesia

Despite its contribution to urban development, high rise residential projects also cause adverse impact on the living environment. To address the problem, a sustainable construction as a new paradigm has been introduced. Various papers have examined the importance of sustainable construction. However, most studies focused on social and environmental aspects and with few consideration on the economic objective of the business. This study aimed to fill the research gap by presenting a dynamic model to improve social, environmental and economic performance of sustainable construction for high rise residential projects in developing countries. This study started with a literature review as a basis for a qualitative survey conducted in thirty high rise residential projects in Indonesia, to identify the influencing factors and the interrelationships. To analysis the data, a system dynamics approach was utilized. The simulations reveal that the current regulation and construction practices are insufficient to reduce environmental negative impacts. In order to formulate better policies, three scenarios comprised the implementation of building energy regulation, tax incentives policy, and a policy mix were employed. The results show that the scenarios could improve construction sustainability performance in some extends. The combination of building regulation and tax incentives policy is effective to achieve environmental and social as well as economic aspects of sustainable construction which is suitable for investors. Based on the results, it is concluded that the model can be used to formulate various policies in the future to enhance sustainable construction of high rise residential projects in developing countries.