1306 X.Liang et aL Journal of Cleaner Production 137(2016)1300-1312 Occupiers Initiative to retrofit Reluctant to retrofit Initiative to (BB） (Brl2,Bcl2） retrofit Reluctant to retrofit (Bn2.Be21） (Bnm22,B.22） Fig.3.The payoff matrix of retrofit strategy for owner and occupier. Table 3 The variables of decision in owner-occupied building. Stakeholder Variable Definition Driver/Barrier Owner Bow Benefit of a building owner Dow1/4 Energy saving through green retrofit Dow4 S。 Operation saving through green retrofit Dow2 △V Building value increase through green retrofit Dow7/8 △P Public impact through retrofit Dow9/10/11 1 Investment of building retrofit Bow1/2/3 Disturbance of business during retrofit Bow4 owners and occupiers in this scenario have no game,because the owners.Different from the scenario of an owner-occupied building. decision is made only by the owners. the rent and disturbance of the business during the retrofitting is accrued to the occupiers rather than to the owners.These variables 5.Retrofit decision for single-occupied building are described in Table 4.The non-economic factors,such as comfort enhancement (Doc3).lack of understanding or interest about In the scenario of a single-occupied building.two players. environment (Boc4)and lack of information (Boc5).are not considered. namely,the owner and the single occupier,are in the game for green retrofit decision making.The advantages and disadvantages The payoff matrix for the owners and occupiers in a single- of the green retrofit for the owner are the economic aspects and occupied building is shown in Fig.4,where the superscript "so" represents the single-occupied condition. social influences of the process.The economic aspects include the Based on this adapted matrix,the following scenarios are operation cost saving from green retrofit,building value increasing. and investment.The social influences pertain to the reputation of a investigated to identify the Nash Equilibrium under the single- occupied condition. company,enterprise social responsibility,environmental impact, and other factors related to the society.To confirm the preliminary proposal and decide on the implementation,the owner and the 5.1.The action of the occupier when the owner has the initiative to occupier must communicate and negotiate with each other,which may cost time,money.and human resource.In addition to the retrofit factors illustrated in Section 4,the increasing rent and coordination Green retrofit can be implemented smoothly when the owner costs are the influencing factors for owners in this scenario. has the initiative to implement the approach and the occupier is For single occupiers,the advantages and disadvantages of green also interested in it.The occupier should be willing to pay addi- retrofit pertain primarily to the economic aspects and social in- tional rent to the owner to compensate for additional costs of fluences.Economic aspects include energy cost saving from green implementing green retrofit (Fuerst and McAllister.2011).This retrofit,rent increase,and disturbance of business during the ret- rofitting.Social influences are the same as the social factors of the scenario occurs mostly in government and large private organiza- tions,where sustainable development is considered an essential factor in building selection(Miller and Buys,2008).The occupier Table 4 tends to pay additional rent 4RIn cases where the owner de- The variables of decision in single-occupied building. cides to implement green retrofit but the occupier is reluctant, Stakeholder Variable Definition Driver/Barrier green retrofit can still be implemented because the owner is the main decision-maker.The reluctant occupier,as a large organiza- Owner △R Increased rent by retrofit Dow1/5 tion,cannot move out because of the long rental contract and high Ce Coordination cost for retrofit Bow1 Occupier Benefit of building occupier Doc1/2 relocation cost,but could take the position of non-cooperation. Se Energy saving through green retrofit Docl Given the strong influence of the owner's income and profit,the R Increased rent through retrofit Bocl single occupier will have relatively high negotiation capacity and D Disturbance of business during retrofit Boc2 AP will not pay additional rent 4R or other alternative compensations Public impact through retrofit Doc4 to the owner when he/she does not want to cooperate in greenowners and occupiers in this scenario have no game, because the decision is made only by the owners. 5. Retrofit decision for single-occupied building In the scenario of a single-occupied building, two players, namely, the owner and the single occupier, are in the game for green retrofit decision making. The advantages and disadvantages of the green retrofit for the owner are the economic aspects and social influences of the process. The economic aspects include the operation cost saving from green retrofit, building value increasing, and investment. The social influences pertain to the reputation of a company, enterprise social responsibility, environmental impact, and other factors related to the society. To confirm the preliminary proposal and decide on the implementation, the owner and the occupier must communicate and negotiate with each other, which may cost time, money, and human resource. In addition to the factors illustrated in Section 4, the increasing rent and coordination costs are the influencing factors for owners in this scenario. For single occupiers, the advantages and disadvantages of green retrofit pertain primarily to the economic aspects and social in- fluences. Economic aspects include energy cost saving from green retrofit, rent increase, and disturbance of business during the ret￾rofitting. Social influences are the same as the social factors of the owners. Different from the scenario of an owner-occupied building, the rent and disturbance of the business during the retrofitting is accrued to the occupiers rather than to the owners. These variables are described in Table 4. The non-economic factors, such as comfort enhancement (DOC3), lack of understanding or interest about environment (BOC4) and lack of information (BOC5), are not considered. The payoff matrix for the owners and occupiers in a single￾occupied building is shown in Fig. 4, where the superscript “so” represents the single-occupied condition. Based on this adapted matrix, the following scenarios are investigated to identify the Nash Equilibrium under the single￾occupied condition. 5.1. The action of the occupier when the owner has the initiative to retrofit Green retrofit can be implemented smoothly when the owner has the initiative to implement the approach and the occupier is also interested in it. The occupier should be willing to pay addi￾tional rent to the owner to compensate for additional costs of implementing green retrofit (Fuerst and McAllister, 2011). This scenario occurs mostly in government and large private organiza￾tions, where sustainable development is considered an essential factor in building selection (Miller and Buys, 2008). The occupier tends to pay additional rent DRso oc11. In cases where the owner de￾cides to implement green retrofit but the occupier is reluctant, green retrofit can still be implemented because the owner is the main decision-maker. The reluctant occupier, as a large organiza￾tion, cannot move out because of the long rental contract and high relocation cost, but could take the position of non-cooperation. Given the strong influence of the owner's income and profit, the single occupier will have relatively high negotiation capacity and will not pay additional rent DR or other alternative compensations to the owner when he/she does not want to cooperate in green Fig. 3. The payoff matrix of retrofit strategy for owner and occupier. Table 3 The variables of decision in owner-occupied building. Stakeholder Variable Definition Driver/Barrier Owner Bow Benefit of a building owner DOW1/4 Se Energy saving through green retrofit DOW4 So Operation saving through green retrofit DOW2 DV Building value increase through green retrofit DOW7/8 DP Public impact through retrofit DOW9/10/11 I Investment of building retrofit BOW1/2/3 D Disturbance of business during retrofit BOW4 Table 4 The variables of decision in single-occupied building. Stakeholder Variable Definition Driver/Barrier Owner DR Increased rent by retrofit DOW1/5 Cc Coordination cost for retrofit BOW1 Occupier Boc Benefit of building occupier DOC1/2 Se Energy saving through green retrofit DOC1 DR Increased rent through retrofit BOC1 D Disturbance of business during retrofit BOC2 DP Public impact through retrofit DOC4 1306 X. Liang et al. / Journal of Cleaner Production 137 (2016) 1300e1312