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11.350 Lecture 7 From Green Buildings to Green Cities

[CREAKING] [RUSTLING] [CLICKING] SIGI ZHENG: There's a thinking approach that you need to grasp. So I know I'm not as funny and as smart as Juan and Azizi. So I need to make sure you like me. So I brought some food from Trader Joe's for today. And it's a way to make this very, very technical lecture a little bit funny. So that's about today. So today, we will talk about-- we already talked about green buildings and healthy buildings. Now we're going to talk about how to quantitatively measure the benefit of the green building or the or the green city and how to do a model. But don't be so worried. And this model is so simple, and I'm sure you can understand. So just to quickly recap-- the quickly recap is the following. So for the entire this course, we talk about the business case. We talk about business case. Our point is you cannot [INAUDIBLE] for people, for the planet with three bottom lines-- and very, very important bottom line, the ...

11.350 Lecture 3 The Economics of Green Buildings, Part 2

[SQUEAKING] [RUSTLING] [CLICKING] SIQI ZHENG: So today is our second lecture on the economics of green buildings. So last session, we talked about the first lecture. Remember, recap-- very, very quick recap. So last session, we talked about these green buildings. So we had this structural way that we talk how the market may work and how the market may not work. Remember, this market-- and we have that cash flow. We have that chain of the developer and investor and also tenants. So sometimes it works, and then you have the incentive from the tenant side, from the user side. You have a higher willingness to pay for rent. And then the owners, they can get higher revenue from the green buildings. If they have higher revenue for the green buildings, they are willing to pay higher price to purchase the green building. And that will incentivize the developers to build green building. So that's market work. And then we talk about how the market may not work-- so the market fa...