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1 – 10 of 95The purpose of this paper is to address the apparent slow acceptance on the part of developers located in the USA to seek green certifications. If green-certified construction…
Abstract
Purpose
The purpose of this paper is to address the apparent slow acceptance on the part of developers located in the USA to seek green certifications. If green-certified construction costs more than non-green construction, then is there a financial reason for not seeking a green rating. Do green buildings perform better than non-green buildings financially? The paper develops and presents a discounted present value model for doing a cost-benefit analysis for building green. This model enables an investor to determine the feasibility of constructing a new green-certified building instead of a conventional non-green building. Non-green buildings are not certified by a rating agency such as Leadership in Energy and Environmental Design (LEED), Energy Star or Building Research Establishment Environmental Assessment Method (BREEAM). Real estate permits are granted by local municipalities in the USA. This means that local government mandates requiring green construction that significantly adds to the initial cost of a project could have the unintended result of encouraging new non-green construction just outside their municipal boundaries.
Design/methodology/approach
The paper collects publically available research data for office buildings located in the USA, and inputs this information into an income statement. It tests the hypothesis: is green-certified construction a financially feasible choice for an investor? An incremental approach using a 15-year holding period is presented. This time period takes into account equipment wear and tear. Heating/cooling systems and other green-technologically based operating systems have a limited life and do not last for 30 or 40 years. They are likely to need replacement after 15 years have lapsed.
Findings
The negative net present value (NPV) results and high payback periods indicate that increased rents for green construction, a tax credit for the present value loss and/or property-tax reduction covering the shortfall is needed as an incentive to commercially build green. The implication of a negative NPV is that green office buildings will be built by government agencies where green is mandated, corporations that want a green image and benefit from this image, where local ordinances mandate green construction features and where local and federal tax incentives are available increasing a construction project's feasibility.
Research limitations/implications
The limitation of any cost-benefit study is that analytical models and/or data used to forecast energy and water consumption savings in green-certified buildings compared to conventional buildings can be inaccurate. Forecasting models can understate or overstate the actual savings realized from green construction especially in the long-term given the difficulty of predicting equipment wear and tear, net rents and energy costs. The modeled percentage cost associated with green new construction features could remain constant or grow through time. Tables I and II results assume energy and water expenses remain a constant percentage over the 15-year period. The agency costs associated with obtaining a LEED or BREEAM certification was not calculated as an upfront cost. Certification by LEED or BREEAM increases the upfront cost associated with building a green building.
Practical implications
The length of the payback period estimates coupled with negative NPV for green certified compared to non-green construction suggests that developers do not have an incentive to build green. Higher WACC rates would result in green-certified projects being less feasible to build.
Social implications
The LEED certification point system may need to be reviewed. Points are assigned for features that improve occupant satisfaction, but may have little impact on reducing energy usage.
Originality/value
A model is presented for determining whether green-certified construction is financially feasible. The model enables the investor to determine the size of a tax incentive that is needed to enable new green construction to be economically feasible to build. The higher the negative NPV the larger the income or property tax incentive or other financial incentives needed. Prior research studies compared green and non-green buildings, but did not compare the energy savings generated to the additional construction and upfront costs incurred using a discount rate. They assumed the energy savings justified the additional initial cost associated with building a new green certified.
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Saul Nurick and Andrew Thatcher
This paper aims to investigate green buildings and individual productivity, specifically within the context of indoor environmental quality (IEQ) within green certified office…
Abstract
Purpose
This paper aims to investigate green buildings and individual productivity, specifically within the context of indoor environmental quality (IEQ) within green certified office buildings. The purpose of the research was to determine how self-assessed productivity levels were influenced by the indoor environment of the office building.
Design/methodology/approach
Qualitative data analysis was conducted via semi-structured interviews in two financial services companies (FSCs), both based in green certified office buildings in South Africa. Thematic analysis was conducted to extract common themes from the data. Furthermore, the data were compared to previous research to identify new potential pathways or provide support for existing pathways.
Findings
The main findings were that physical components, such as temperature, lighting, ventilation and noise, contribute depending on the respondent to individual productivity, engagement, organisational commitment and psychological wellbeing. Safety, underpinned by location and amenities, was a new component not previously considered that subtly contributed to individual productivity.
Originality/value
The research provides valuable insight into the contributing factors that impact individual productivity within a green certified office building, as previous researchers have yet to reach a consensus on the relationship between individual productivity and IEQ in green certified office buildings.
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Harshini Mallawaarachchi, Lalith De Silva and Raufdeen Rameezdeen
The purpose of the study presented in this paper is to determine the relationship and effect of built environment on occupants’ productivity in green-certified office buildings in…
Abstract
Purpose
The purpose of the study presented in this paper is to determine the relationship and effect of built environment on occupants’ productivity in green-certified office buildings in Sri Lanka.
Design/methodology/approach
Two research hypotheses were tested by approaching the survey method under the quantitative phenomenon. The questionnaire survey was conducted among randomly selected occupants in three selected green-rated office buildings in Sri Lanka. The survey data were analysed by using the Spearman correlation and ordinal logistic regression analysis techniques to model the relationship existing between the variables. The SPSS v20 software was used in data analysis.
Findings
The findings confirm the relationship between built environment and occupants’ productivity. As it further proves that, there is a significant effect of built environment on occupants’ productivity in green-certified office buildings. Thus, critical built environment factors influencing occupants’ productivity and their effect were determined.
Practical implications
The findings could be practically implied as bases to strengthen the evaluation criteria of indoor environmental quality in GREENSL® national green-rating system.
Originality/value
The evaluation of occupants’ productivity and the built environment factors has been at the focal point of research; however, most studies have focused on single aspects of the built environment. Further, no evidences were found on “which factors” can critically influence the occupants’ productivity in green buildings. The paper, therefore, seeks to fill this gap by proving the relationship between green built environment and occupants’ productivity.
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Erin A. Hopkins and Jennifer H. Van Mullekom
As the green economic bottom line is a strong motivating force when deciding to build, manage and/or operate green, this study aims to examine the financial impacts of green…
Abstract
Purpose
As the green economic bottom line is a strong motivating force when deciding to build, manage and/or operate green, this study aims to examine the financial impacts of green certifications on multifamily rental communities.
Design/methodology/approach
Using a multiple regression methodology, operating financial variables are examined.
Findings
Multifamily rental green buildings garner not only higher rental collections but also higher total expenses. When applying these higher rates to properties, the overall increase in rents outweighs the increases in total expenses.
Originality/value
While multiple studies have focused on the office sector, this study begins to fill the literature gap within the multifamily rental sector regarding the economic impacts of green-certified buildings. The outcomes of this study have positive implications for the multifamily real estate industry by providing developers, owners, managers and related parties with a better understanding of the financial impacts of multifamily rental green buildings; however, more research is needed.
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Suzaini M. Zaid, Amir Kiani Rad and Nurshuhada Zainon
Global warming and climate change is one of the biggest issues facing humanity in this century; its effects are felt on the highest peaks of Mount Everest to the low-lying islands…
Abstract
Purpose
Global warming and climate change is one of the biggest issues facing humanity in this century; its effects are felt on the highest peaks of Mount Everest to the low-lying islands in the India Ocean. This century marked the highest amount of carbon dioxide (CO2) emitted, breaking records of the past 650,000 years, and we have pushed the climate to “a point of no return”. Much of the climate contribution has been linked to humanity’s thirst for higher living standards and lifestyle, which has led to higher consumerism, depletion of earth’s resources, production of massive waste and carbon emissions. Fast forward from the sustainability agenda of Brundtland set in 1987 and the increasing demand for energy consumption to cater for the current global inhabitants, many “green” efforts have been taken by the building industry to reduce the overall environmental impact. This purpose of this study is to compare energy performance of a conventional office building with a green certified building.
Design/methodology/approach
This paper tries to bridge the performance gap by comparing measured operational energy consumption and carbon emission of Green Building Index (GBI)-certified office buildings in Kuala Lumpur, to determine whether “green buildings” are performing as intended in reducing their environmental impact.
Findings
This paper highlighted and compared operational energy consumption and carbon emissions of a GBI-certified office with a conventional office building in Malaysia. The paper also discusses the performance gap issue and its common causes, and aims to compare predicted energy and operational energy performance of buildings.
Originality/value
Initiatives such as “green” or “sustainable” design have been at the forefront of architecture, while green assessment tools have been used to predict the energy performance of a building during its operational phase. There is still a significant performance gap between predicted or simulated energy measurements to actual operational energy consumption. The need to measure actual performance of these so-called “green buildings” is important to investigate if there is a performance gap and whether these buildings can perform better than conventional buildings. Understanding why the performance gap occurs is a step in reducing actual and predicted energy performance in buildings.
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Harshini Mallawaarachchi, Lalith De Silva and Raufdeen Rameezdeen
The purpose of this paper is to determine the relationship between indoor environmental quality (IEQ) and occupants’ productivity improvements in green buildings in order to…
Abstract
Purpose
The purpose of this paper is to determine the relationship between indoor environmental quality (IEQ) and occupants’ productivity improvements in green buildings in order to propose probable enhancements of national green certification criteria.
Design/methodology/approach
Survey approach was selected under quantitative phenomenon. Hence, questionnaire survey was selected as a primary data collection technique. It was linked to semi-structured interviews to validate survey results. The survey data were analysed by using nonparametric statistical analysis techniques, such as significance testing and Spearman’s correlation. Statistical Package for the Social Science (SPSS) v.20 statistical analysis software was used in data analysis.
Findings
Seven factors were identified as significant factors which showed statistically significant monotonic correlation to major IEQ dimensions. Among those, air quality and acoustical partitioning factors confirmed a statistically significant weak positive monotonic correlation, whilst system control showed strongly positive monotonic correlation to occupants’ productivity in green buildings.
Practical implications
The findings can be practically implied as a basis to review the existing evaluation criteria of IEQ in national green certification system to propose probable enhancements.
Originality/value
The significant IEQ factors influencing occupants’ productivity were determined as the focal point of this research. Accordingly, new provisions were proposed to enhance the national green certification criteria.
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Sonali Abeysinghe, Chandula Jithmi De Zoysa, Chandana Siriwardana, Chaminda Bandara and Ranjith Dissanayake
The purpose of the study is to mainstream the disaster risk reduction (DRR) and disaster resilience measures into the GreenSL® building rating system in Sri Lanka to demonstrate a…
Abstract
Purpose
The purpose of the study is to mainstream the disaster risk reduction (DRR) and disaster resilience measures into the GreenSL® building rating system in Sri Lanka to demonstrate a more holistic approach in achieving sustainability with resilience.
Design/methodology/approach
First, a comprehensive literature review was carried out on green building practices and rating tools, natural hazards and DRR and global and local frameworks. Next, criteria were developed incorporating the disaster resilience aspects through eight expert committee meetings and included the rating tool in three levels. Finally, 11 green-certified buildings from the Green Building Council of Sri Lanka were reevaluated using the new disaster resilient GREENSL® rating system for built environment as a validation for the new tool and to analyze the new certification levels.
Findings
All the green-certified buildings in hazard-prone areas dropped their certification by one level while the buildings in nonhazard-prone areas remained in the certification after being evaluated by the new DRR-incorporated rating system, which recommends the use of new tool for the buildings in hazard-prone areas. But due to the rapid changes in climate and the unpredictable trends of natural hazards, the use of new DRR incorporated GREENSL® rating system for built environment for the certification of buildings is highly endorsed.
Originality/value
This is the first research study based on the GREENSL rating system. And it is the first effort to incorporate DRR aspects to any rating tool in Sri Lanka. The projects that were evaluated for the validation of the new tool are the actual projects which obtained green building certification. Also, it is apparent that this study has gone some way towards enhancing the understanding of blending the sustainability and resilience in rating systems for built environment.
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Kofi Agyekum, Samuel Fiifi Hammond and Burcu Salgin
This study examines occupants' satisfaction with the indoor environmental quality (IEQ) of a green-certified building [The Green Star South Africa (SA) Building] in Ghana.
Abstract
Purpose
This study examines occupants' satisfaction with the indoor environmental quality (IEQ) of a green-certified building [The Green Star South Africa (SA) Building] in Ghana.
Design/methodology/approach
Views of 300 respondents are solicited on 15 IEQ (obtained through a critical review of the literature and complemented with a pilot interview on the subject) parameters. Data obtained are analysed using both descriptive and inferential statistics.
Findings
Findings suggest that occupants are generally satisfied with five critical aspects of IEQ. The results also indicate that the occupants perceive five key IEQ parameters to have high levels of importance. Further inferential analysis of the parameters revealed that two core IEQs require the highest levels of improvement actions.
Research limitations/implications
The study was conducted in Ghana and analysed occupants' perceptions of working within one green-certified building. Again, the collection of the occupants' responses was not linked with the direct measurement of physical characteristics of the IEQ parameters of the building. Hence, the findings cannot be generalised.
Practical implications
Practically, the study contributes to providing all stakeholders involved in the Green Star SA Ghana certification system with the relevant feedback for their decision-making on current and future projects to be certified under this certification system.
Originality/value
This study provides valuable information on the performance of IEQ parameters of the building and points out potential IEQ areas that need improvement efforts, especially concerning current and future facilities certified under this certification system.
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Nor Nazihah Chuweni, Nurul Sahida Fauzi, Asmma Che Kasim, Sekar Mayangsari and Nurhastuty Kesumo Wardhani
Sustainability represents innovative elements in determining the profitability of real estate investments, among other factors, including the green component in real estate…
Abstract
Purpose
Sustainability represents innovative elements in determining the profitability of real estate investments, among other factors, including the green component in real estate. Evidence from the literature has pointed out that incorporating green features into residential buildings can reduce operational costs and increase the building’s value. Although green real estate is considered the future trend of choice, it is still being determined whether prospective buyers are willing to accept the extra cost of green residential investment. Therefore, this study aims to investigate the effect of housing attributes and green certification on residential real estate prices.
Design/methodology/approach
The impact of the housing attribute and green certification in the residential sectors was assessed using a transaction data set comprising approximately 861 residential units sold in Selangor, Malaysia, between 2014 and 2022. Linear and quantile regression were used in this study by using SPSS software for a robust result.
Findings
The findings indicate that the market price of residential properties in Malaysia is influenced by housing attributes, transaction types and Green Building Index certification. The empirical evidence from this study suggests that green certification significantly affects the sales price of residential properties in Malaysia. The findings of this research will help investors identify measurable factors that affect the transaction prices of green-certified residential real estate. These identifications will facilitate the development of strategic plans aimed at achieving sustainable rates of return in the sustainable residential real estate market.
Practical implications
Specifically, this research will contribute to achieving area 4 of the 11th Malaysia Plan, which pertains to pursuing green growth for sustainability and resilience. This will be achieved by enhancing awareness among investors and homebuyers regarding the importance of green residential buildings in contributing to the environment, the economy and society.
Originality/value
The regression model for housing attributes and green certification on house price developed in this study could offer valuable benefits to support and advance Malaysia in realising its medium and long-term goals for green technology.
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Kofi Agyekum, Emmanuel Adinyira and Godslove Ampratwum
Sustainability has become a topical issue in many countries, with emphasis on green buildings. Though Ghana has recently adopted green buildings, there is lack of its speedy…
Abstract
Purpose
Sustainability has become a topical issue in many countries, with emphasis on green buildings. Though Ghana has recently adopted green buildings, there is lack of its speedy implementation. There is little literature on the adoption of green certification of buildings, especially in a developing country like Ghana. The purpose of this paper is to identify the factors that drive the adoption of green certification of buildings in Ghana.
Design/methodology/approach
The study adopts face-to-face and telephone interviews, using a semi-structured interview guide among ten built environment professionals. Qualitative responses to the interview are thematically analysed using Nvivo 11 Pro analysis application software.
Findings
The findings suggest that “observability of the benefits of green certified buildings”, “commitment of Government to green building initiatives”, “incorporating green certification of buildings into the code of practice of professional bodies”, “green building certification incentives”, “public acknowledgement of the green building concept”, “policies and regulations to enforce the adoption of the concept” and “effective communication and source of information on the concept” are the factors that drive the adoption of green certification of buildings in Ghana.
Originality/value
The paper contributes to the understanding of the factors that drive the adoption of green building certification in Ghana. With these findings, stakeholders and industry practitioners can make informed decisions regarding how they can put in place strategies to ensure the effective adoption of green certification of buildings. Though this study was conducted within the context of Ghana, its findings and implications can be useful to policy makers, stakeholders and practitioners in other developing countries.
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