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Sunday, November 1, 2009

Texas Sustainability: Building Green for Economists: Cost/Benefit Analysis

Repost: http://texas-sustainability.blogspot.com/2009/10/building-green-for-economists.html

Michael Matson of Alternative Building Services posted this article (with graphs!) two years ago showing how life-cycle costing justifies Green Building. Unfortunately, for reasons both justifiedfinancing is hard to find (banks are hoarding capital) and unjustified—maximizing shareholder value above all else (which Jack Welch once called "the dumbest idea in the world") first costs still trump energy efficiency, reduced operating costs, and environmental benefits.
"In the final analysis, it is clear that building green is already cost effective when compared to traditional building methods, and is therefore a wise use of investment dollars — for private home builders and government agencies both. It is also clear that the cost/benefit value of green building is only going to increase over time. The costs associated with green building and design continue to fall as manufacturers scale up production, and as techology and sources of green materials improve. At the same time, the cost of gas, electricity, and heating oil continue to rise. No wonder green building is the hottest topic in the construction industry."
Go to Building Green: Cost v. Benefit for the full article.
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Texas Sustainability: Building Green for Economists: Cost/Benefit Analysis


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