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Sustainable development

Green Buildings' Economic Viability Examined in Study

Strategic Insights

— 2 min read

Investigations into the feasibility of green buildings as a path to sustainable development in the built environment have led to crucial findings. A study published in the Journal of Cleaner Production analyzed the life cycle costs of non-residential green buildings in tropic climates, comparing their Construction Costs (CC), Operation Costs (OC), and Life Cycle Costs (LCC). The study found that while green buildings have higher initial costs, their operational savings could recover the initial construction cost, paving the way for adoption.

Key Takeaways:

  • The study aimed to empirically examine whether the operational savings of green buildings could recover the initial construction cost through a life cycle cost analysis of non-residential green buildings in the tropic climate.
  • The study collected data from 44 non-residential buildings constructed between 1978 and 2013 on a national scale in Singapore, comparing the LCC, CC, and OC for various types of buildings certified by different levels of Green Mark in Singapore.
  • The findings show that the annualized average values of LCC, CC, and OC of green buildings are S$ 222.03/m(2), S$ 91.85/m(2), and S$ 130.18/m(2) respectively.
  • One level increase of the Green Mark certificate standard would increase the annualized LCC and CC by S$ 47.81/m(2) and S$ 25.37/m(2) respectively, with no significant influence on the OC.
  • The study identified key influencing factors and their effects on both the annualized LCC and OC, contributing to the literature by providing a clear framework for analyzing life cycle economic assessment of green buildings.
  • The findings enrich the diversity of cost comparison for green buildings across different regions, encouraging the adoption of green buildings in the built environment.

Statistics:

  • 44 non-residential buildings construction data was collected for analysis.
  • The study compares the LCC, CC, and OC for various types of buildings certified by different levels of Green Mark in Singapore.
  • The annualized average values of LCC, CC, and OC of green buildings are S$ 222.03/m(2), S$ 91.85/m(2), and S$ 130.18/m(2) respectively.
  • One level increase of the Green Mark certificate standard would increase the annualized LCC and CC by S$ 47.81/m(2) and S$ 25.37/m(2) respectively, with no significant influence on the OC.

Sources:

  • NewsRx. Findings from Tongji University in the Area of Green Technology Reported (The Economics of Green Buildings: a Life Cycle Cost Analysis of Non-residential Buildings In Tropic Climates). Journal of Technology & Science. May 3, 2020; p 744.
  • The Economics of Green Buildings: a Life Cycle Cost Analysis of Non-residential Buildings In Tropic Climates. Journal of Cleaner Production, 2020;252():.

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