Civil Engineering Reference
In-Depth Information
imposed by the micro, meso and macro factors. Recognising that in each country
the factors will be different, this diagram will vary accordingly. It is necessary to
utilise knowledge and experience about the micro-, meso- and macro-level factors,
so as to increase the efficiency level in each country under consideration. This will
be done by analysing the worldwide experience, knowledge and best practices and
applying this to specific country.
Using carbon tax as an example of this, it can be appreciated that if the level of
carbon tax is high, national firms could either go bankrupt because of increased tax
liabilities, or they could decrease efficiency in the face of a lack of competition
from international companies who will not attempt to enter the local market.
Similarly, if the carbon tax level is lowered, this may cause national firms to lose
market share to international companies entering the local market, or to force them
to increase efficiency in the face of such competition.
Such changes in taxation will alter the boundary of efficiency of the built
environment. Similar built environment changes can shift this boundary (the area
within boundary of efficiency expresses the total satisfaction level of needs of all
stakeholders). For example, the specific country government (in order to solve the
most important problems for specific country society) may abolish VAT on new
residential passive houses in order to promote investment in passive housing.
Thus, the boundary of efficiency is extended to include this new development from
the former situation. After development of the specific country passive house
sector, the boundary will alter again (Fig.
3
illustrate a revised level of efficiency
as an example of how to take account of these alterations).
Figure
4
graphically illustrates interrelationships between macro level factors
and the built environment. The area inside the ellipse represents the positive action
of specific macro-level factors on the efficiency of the built environment. The area
outside the ellipse represents the negative effect of the macro-level factors on the
efficiency of the built environment, where the macro-level factors overlap a better
environment for the built environment is created. In this case, the optimum
environment for the built environment is when all four ellipse areas are overlap-
ping (i.e. economic, fiscal, legal and market). The greater the common overlapping
Revised Boundary
of Efficiency
Revised Boundary
of macro factors
Economic
etc.
etc.
Legal
Fiscal
etc.
Revised Boundary
of micro factors
etc.
Market
Fig. 3
Fluctuation of efficient boundary of micro, meso and macro environment
