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Holistic Life-cycle Cost-benefit Analysis of Green Buildings: A China Case Study

  • Construction Management
  • Published:
KSCE Journal of Civil Engineering Aims and scope

Abstract

Green buildings, compared with conventional ones, can mitigate the rapid growth of China’s carbon emissions. They offer many advantages, such as saving resources and reducing negative environmental impacts. However, few studies have assessed their incremental costs and social benefits. This study comprehensively analyzed the incremental costs and benefits of green buildings in China through the life cycle stages of preparation, design, construction, and operation-management. The Analytic Hierarchy Process and Matter Element Analysis were jointly applied to establish a comprehensive green-building cost-benefit evaluation system. Based on expert judgment, an embracive two-level index scheme and a three-step grading strategy were developed. A residential case study tested the applicability of the model. It yielded the largest share of incremental cost in the construction phase at 90.5%. The economic benefits accounted for the largest proportion of incremental benefits at 72.22%, meeting the green building criteria and achieving the highest 3-star rating. The study has developed a full life-cycle costing methodology for green building design and quantified the benefits at each stage. The findings offer the theoretical and practical basis to refine the assessment of green building projects and improve green building performance to meet sustainable development goals.

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Abbreviations

ΔC:

Green building incremental costs

AHP:

Analytic Hierarchy Process

B6 :

Land acquisition benefits

B7 :

Underground space benefits

C5 :

Green building costs

C6 :

Conventional construction cost

CE:

Cost-effectiveness ratio

GCES:

Green-building cost-benefit evaluation system

LCC:

Life Cycle Cost

MATLAB:

Matrix Laboratory

MEA:

Matter Element Analysis

NPV1 :

Present value of green building benefis

NPV2 :

Increased costs of green buildings over conventional buildings

P1 :

Local electricity price

P2 :

Local water price

P3 :

market price

P4 :

Price per square meter of awards

P5 :

Benefit per square meter

P6 :

Sewage wastewater market treatment prices

P7 :

Emission reductions per unit of standard coal in China

Q1 :

Electricity savings from heating and air conditioning between green and conventional buildings

Q2 :

Electricity savings between LED and ordinary lamps

Q3 :

Electricity savings from using renewable energy in green buildings

Q4 :

Water savings

Q5 :

Reclaimed water recycling capacity

Q6 :

Rainwater recycling volume

Q7 :

Structural material savings

Q8 :

Building material savings

Q9 :

Savings in coal use in green buildings compared to conventional buildings

Q10 :

Reduction of sewage effluent

S:

Area

SE:

Comprehensive benefits

SPSS:

Statistical Package for the Social Sciences

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Acknowledgments

This work was supported by the research grant kindly provided by the Ministry of Housing and Construction of China (grant number 2021R046) and the Fujian Province Science and Technology Department of China (grant number 2019R0032).

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Correspondence to Chi Yung Jim.

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Li, X., Lin, M., Xie, W. et al. Holistic Life-cycle Cost-benefit Analysis of Green Buildings: A China Case Study. KSCE J Civ Eng 27, 4602–4621 (2023). https://doi.org/10.1007/s12205-023-0431-3

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  • DOI: https://doi.org/10.1007/s12205-023-0431-3

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