Green building has received increased attention over the past decade from both environmental economists and policymakers. While there is no single definition of “green buildings” or its related policy, researchers and organizations tend to emphasize resource efficiency in building and reducing the impacts of buildings on human health and the environment.

Green building (GB) policies have been implemented to promote GB and address climate change. Most of the existing literature have studied the costs and benefits of developing GB, without considerations of GB policies’ impacts. This paper aims to study the costs and benefits of implementing GB policy from the developers’ perspective.