Economic Models and Risk Analysis
Buildings currently being constructed are required to meet the green building standard. Green building encourages innovation and the integration of new technologies and approaches.
Green construction produces high-quality projects, but it introduces economic implications for the builder and the buyer. Accumulated data indicates an additional construction cost of 0.5% to 2% for typical green projects. Price increases may reach 5% or more on projects with outstanding green achievements.
Green building imposes greater upfront costs due to required high performing materials and systems, but the investments pay off throughout the building’s lifecycle. Highly efficient buildings redeem these costs faster. Achieving optimum energy efficiency requires: designing better glazing and wall systems, introducing natural light and preventing radiation, and using efficient energy systems.
These economic implications can be calculated and require constant examination of economic feasibility (cost-benefit analysis), alternative solutions, as well as the marketing implications that affect the sales of the project.