Low-energy versus conventional residential buildings: construction cost, operatin cost and return on investment
(English)Other (Other academic)
Purpose - The focus of this paper is to investigate the cost side of “green” building construction and if increased investment cost are profitable taking the reduction in operating cost into account. The investment viability is approached by comparing investment in conventional and “green” residential building, particularly low-energy building, using real construction and post-occupancy condition.
Design/methodology/approach - The key data was obtained by surveys and personal interviews. First survey was directed to the companies which had experience of building lowenergy housing and the second survey to the housing companies that actively manage operation of low-energy houses.
Findings - Findings indicate that low-energy buildings are considered as interesting and good business opportunity and life cycle cost analysis suggests that low energy building (particularly passive house) is a better investment than conventional residential building. At the same time government initiative and the construction regulations are found to have strong motivation power towards development of “green” buildings.
Originality/ value – This paper provides insights to the investment decisions and contributes to understanding of the construction and operation of energy-efficient residential buildings.
low-energy buildings, residential buildings, investment analysis
Economics and Business Other Social Sciences not elsewhere specified
IdentifiersURN: urn:nbn:se:kth:diva-34717OAI: oai:DiVA.org:kth-34717DiVA: diva2:422868