Economics of Sustainable Construction - Sustainable and Green Construction
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Economics of Sustainable Construction

Economics of Sustainable Construction

The economics of sustainable construction illustrates the financial benefits of green building projects, highlighting cost-benefit analysis (CBA) that compares initial investments with long-term savings and societal benefits. It emphasizes financial incentives and innovative business models that promote the adoption of green technologies. By integrating sustainable practices in construction, stakeholders can achieve substantial operational savings and improved market opportunities.

30 sections

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Sections

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  1. 1
    Cost-Benefit Analysis (Cba) For Green Building Projects

    Cost-benefit analysis (CBA) evaluates the economic viability of green...

  2. 1.1
    Components Of Cba For Green Buildings

    This section discusses the components of cost-benefit analysis (CBA) for...

  3. 1.1.1
    Initial Costs

    This section explores the initial costs associated with green building...

  4. 1.1.2
    Operational Savings

    Operational savings refer to the reduction in energy, maintenance, and waste...

  5. 1.1.3
    Lifecycle Savings

    Lifecycle savings in the context of green buildings refers to the long-term...

  6. 1.1.4
    Non-Monetary Benefits

    This section discusses the important non-monetary benefits associated with...

  7. 1.1.5
    Potential Risks/costs

    This section discusses the potential risks and costs associated with green...

  8. 1.2
    Sample Payback Calculation

    This section illustrates the process of payback calculation for green...

  9. 1.3
    Lifecycle Cost Analysis (Lcca)

    Lifecycle Cost Analysis (LCCA) evaluates the total cost of ownership of...

  10. 2
    Financial Incentives For Sustainable Construction

    This section outlines the various financial incentives provided by...

  11. 2.1
    Common Incentive Mechanisms

    This section examines various financial incentives used to promote...

  12. 2.1.1
    Tax Incentives

    Tax incentives are financial mechanisms provided by governments to encourage...

  13. 2.1.2
    Fast-Track Approvals

    This section discusses fast-track approvals as a financial incentive...

  14. 2.1.3
    Increased Floor Area Ratio (Far)/fsi

    This section discusses the concept of Floor Area Ratio (FAR)/Floor Space...

  15. 2.1.4
    Property Tax Rebates

    Property tax rebates are incentives offered by governments to encourage...

  16. 2.1.5
    Grants/subsidies

    This section discusses the financial incentives offered by governments and...

  17. 2.1.6
    Concessional Loans And Green Bonds

    Concessional loans and green bonds are critical financial instruments that...

  18. 2.1.7
    Utility Incentives

    This section explores the various utility incentives provided to encourage...

  19. 2.2
    Example: Indian Initiatives
  20. 3
    Business Models For Green Technologies In Construction

    This section discusses innovative business models that enable the successful...

  21. 3.1
    Business Model Types

    This section explores various business model types that facilitate the...

  22. 3.1.1
    Design-Build-Operate (Dbo)

    This section outlines the economic considerations and benefits associated...

  23. 3.1.2
    Energy Service Company (Esco) Model

    The ESCO Model enables third parties to finance energy-saving improvements...

  24. 3.1.3
    Green Leasing

    Green leasing promotes environmentally friendly practices in rental...

  25. 3.1.4
    Product As A Service

    The 'Product as a Service' model offers lighting, HVAC, or other...

  26. 3.1.5
    Green Mortgages

    This section discusses green mortgages as a financial incentive for...

  27. 3.1.6
    Material Circularity/buy-Back

    This section discusses the importance of material circularity and buy-back...

  28. 3.2
    Integration In Construction Projects

    This section discusses the importance of collaboration, lifecycle costing,...

  29. 3.3
    Summary Table: Green Construction Economics

    This section explores the economics of sustainable construction, focusing on...

  30. 4
    In Conclusion

    The economics of sustainable construction increasingly favor green...

What we have learnt

  • Cost-benefit analysis (CBA) is essential for evaluating the economic viability of green building projects.
  • Governments and agencies provide various financial incentives to support sustainable construction efforts.
  • Innovative business models are critical for successfully implementing green technologies in the construction industry.

Key Concepts

-- CostBenefit Analysis (CBA)
A systematic evaluation method for assessing the economic feasibility of projects by comparing initial costs with future savings and benefits.
-- Lifecycle Cost Analysis (LCCA)
An analysis method used to determine the total cost an asset incurs over its lifetime, including initial investment, operations, maintenance, and disposal.
-- Green Building
Buildings designed and constructed to reduce their environmental impact, improve occupant health, and enhance resource efficiency.
-- Financial Incentives
Various forms of support, such as tax breaks or subsidies, offered by governments to promote sustainable construction practices.
-- DesignBuildOperate (DBO)
A business model where a firm is responsible for the design, construction, and operation of a building, often guaranteeing performance outcomes.

Additional Learning Materials

Supplementary resources to enhance your learning experience.