Abstract:

This paper develops a macroeconomic model incorporating representative households, building material producers, real estate firms, and green regulatory authorities to analyze the effects of different types of green regulatory policies on housing prices and household welfare, as well as to propose institutional designs. The results indicate that constraint–based green regulatory policies (such as tax schemes based on carbon emissions) are conducive to environmental governance but may trigger cost transmission mechanisms that lead to rising housing prices. In contrast, incentive-based green regulatory policies (such as subsidies for low-carbon production factors) can improve regulatory outcomes, enhance household welfare, and help stabilize housing prices. It is therefore recommended to implement incentive-based green regulatory measures by subsidizing low–carbon production factors to achieve both environmental governance and housing price stability. At the same time, regulatory oversight should be strengthened and punitive measures enforced to ensure that government support funds are effectively implemented. By fully leveraging the role of the real estate sector as a pillar industry in the national economy, such policies can promote the healthy and sustainable development of the housing market.

Key words:

green regulatory policies, environmental governance, stable housing prices, household welfare