Costs and financial benefits of undertaking green building assessments : final report

Abstract

This study has examined the costs and financial benefits of green building assessments for new buildings in Hong Kong. The estimates are based on studies for two building types: a high-rise, air-conditioned office building of 'generic' design, and a low-cost (public sector) high-rise residential building. Most often investment decisions for building projects tend to be based on capital cost; consequently, any investment in green attributes for a building is likely to depend on the added cost, i.e. the cost premium over conventional design and construction practice. To understand the cost premiums for so-called green buildings, i.e. buildings assessed and certified under a building environmental assessment method, it is necessary to understand what assessment and certification entails, and what it achieves in terms of enhancements to building qualities and performance. Similarly, the financial benefits of a green building depend on the outcome of the assessment and the persistence over time of the performance enhancements.