Cost-benefit Analysis Elements for Green Building Concepts in Architectural Projects

Furry Andini Wilis; Dewi Larasati

Furry Andini Wilis Doctoral Student of Architecture, Bandung Institute of Technology
Dewi Larasati Department of Architecture, Bandung Institute of Technology

Keywords: cost-benefit analysis, green building, architectural projects, cost elements, benefit elements

Abstract

Cost-benefit analysis is an approach used to determine a project’s costs and benefits, including architectural projects that apply the green building concept. Through the application of cost-benefit analysis, it can be seen how much additional costs must be incurred as well as how many additional benefits from an architectural project if implementing the green building concept. This article aims to identify the cost and benefit elements when the green building concept is applied to an architectural project. The literature study results show that the cost elements are generally divided into soft costs and hard costs. As for the benefit elements, they can be grouped into environmental benefits, social benefits, and economic benefits related to energy savings.

References

G. Psacharopoulos, “The Cost-Benefit Model,” 1987.

E. J. Mishan and E. Quah, “Cost–Benefit Analysis, 5th Edition,” 2007.

E. Shin and H. Kim, “Benefit-Cost analysis of Green Roof initiative projects: The case of Jung-gu, Seoul,” Sustainability (Switzerland), vol. 11, no. 12, 2019, doi: 10.3390/SU11123319.

Global Green USA, Blueprint for Greening Affordable Housing. Washington DC: Island Press, 2007.

WGBC, “What is green building?,” 2022. https://www.worldgbc.org/what-green-building (accessed Oct. 19, 2022).

B. Wiryomartono, “‘Green building’ and sustainable development policy in Indonesia since 2004,” International Journal of Sustainable Building Technology and Urban Development, vol. 6, no. 2, pp. 82–89, Apr. 2015, doi: 10.1080/2093761X.2015.1025450.

Kementerian PUPR, Peraturan Menteri PUPR No. 21 Tahun 2021. Indonesia: https://jdih.pu.go.id/detail-dokumen/2881/1#div_cari_detail, 2021.

O. C. Ade-Ojo and D. R. Ogunsemi, “Cost Prediction for Green Affordable Housing in Nigeria,” in Greening Affordable Housing: an interactive approach, CRC Press Taylor & Francis Group, 2019, pp. 265–281.

W. Bradshaw et al., “The Costs and Benefi ts of Green Affordable Housing What is Green Affordable Housing? Community Based Organizations as Vehicles for Green Affordable Housing Challenges to Building Green Affordable Housing Why Focus on Affordable Housing?,” 2005.

G. Ozcan-Deniz, R. Fryer, and A. de C. A. Ferreira, “The design of net-zero-energy affordable housing in Philadelphia,” Designs (Basel), vol. 2, no. 3, pp. 1–13, Sep. 2018, doi: 10.3390/designs2030026.

G. S. Vyas and K. N. Jha, “What does it cost to convert a non-rated building into a green building?,” Sustain Cities Soc, vol. 36, pp. 107–115, Jan. 2018, doi: 10.1016/j.scs.2017.09.023.

S. Williams and D. Bourland, “Green Affordable Housing: Enterprise’s Green Communities Initiative,” in Greening Our Built World, Island Press, 2010, pp. 40–45.

Y. Latief, M. A. Berawi, V. Basten, R. Budiman, and Riswanto, “Premium cost optimization of operational and maintenance of green building in Indonesia using life cycle assessment method,” in AIP Conference Proceedings, Jun. 2017, vol. 1855. doi: 10.1063/1.4985452.

B. Ross, M. López-Alcalá, and A. A. Small, “MODELING THE PRIVATE FINANCIAL RETURNS FROM GREEN BUILDING INVESTMENTS,” pp. 97–105, 2007, [Online]. Available: http://meridian.allenpress.com/jgb/article-pdf/2/1/97/1770350/jgb_2_1_97.pdf

K. Fan, E. H. W. Chan, and C. K. Chau, “Costs and benefits of implementing green building economic incentives: Case study of a Gross Floor Area Concession Scheme in Hong Kong,” Sustainability (Switzerland), vol. 10, no. 8, Aug. 2018, doi: 10.3390/su10082814.

Z. Wu and G. Ma, “Incremental cost-benefit quantitative assessment of green building: A case study in China,” Energy Build, vol. 269, Aug. 2022, doi: 10.1016/j.enbuild.2022.112251.

Northbridge Environmental Management Consultants, “Analyzing the Cost of Obtaining LEED Certification,” 2003.

J. Yudelson and S. R. Fedrizzi, The Green Building Revolution. Washington, DC: Island Press, 2007.

M. Khoshbakht, Z. Gou, and K. Dupre, “Cost-benefit Prediction of Green Buildings: SWOT Analysis of Research Methods and Recent Applications,” in Procedia Engineering, 2017, vol. 180, pp. 167–178. doi: 10.1016/j.proeng.2017.04.176.

N. Z. Abidin and N. Z. M. Azizi, “Soft cost elements: Exploring management components of project costs in green building projects,” Environ Impact Assess Rev, vol. 87, p. 106545, Mar. 2021, doi: 10.1016/j.eiar.2020.106545.

R. Ade and M. Rehm, “AT WHAT COST? AN ANALYSIS OF THE GREEN COST PREMIUM TO ACHIEVE 6-HOMESTAR IN NEW ZEALAND,” Journal of Green Building, pp. 131–155, 2021, [Online]. Available: http://meridian.allenpress.com/jgb/article-pdf/15/2/131/2551371/i1943-4618-15-2-131.pdf

G. Long, T. Xu, and C. Li, “Evaluation of green building incremental cost and benefit based on SD model,” in E3S Web of Conferences, Feb. 2021, vol. 237. doi: 10.1051/e3sconf/202123703012.

P. Miraj, M. A. Berawi, and S. R. Utami, “Economic feasibility of green office building: combining life cycle cost analysis and cost–benefit evaluation,” Building Research and Information, vol. 49, no. 6, pp. 624–638, 2021, doi: 10.1080/09613218.2021.1896354.

Y. H. Ahn, A. R. Pearce, Y. Wang, and G. Wang, “Drivers and barriers of sustainable design and construction: The perception of green building experience,” International Journal of Sustainable Building Technology and Urban Development, vol. 4, no. 1. Taylor and Francis Ltd., pp. 35–45, 2013. doi: 10.1080/2093761X.2012.759887.

S. Durdyev, E. K. Zavadskas, D. Thurnell, A. Banaitis, and A. Ihtiyar, “Sustainable construction industry in Cambodia: Awareness, drivers and barriers,” Sustainability (Switzerland), vol. 10, no. 2, Feb. 2018, doi: 10.3390/su10020392.

S. W. Whang and S. Kim, “Balanced sustainable implementation in the construction industry: The perspective of Korean contractors,” Energy Build, vol. 96, pp. 76–85, Jun. 2015, doi: 10.1016/j.enbuild.2015.03.019.

O. Balaban and J. A. Puppim de Oliveira, “Sustainable buildings for healthier cities: assessing the co-benefits of green buildings in Japan,” J Clean Prod, vol. 163, pp. S68–S78, Oct. 2017, doi: 10.1016/j.jclepro.2016.01.086.

D. Assylbekov, A. Nadeem, M. A. Hossain, G. Akhanova, and M. Khalfan, “Factors influencing green building development in Kazakhstan,” Buildings, vol. 11, no. 12, Dec. 2021, doi: 10.3390/buildings11120634.