Initial cost assessment stochastic model for green buildings based on LEED score: Fid-Bau Portal

Initial cost assessment stochastic model for green buildings based on LEED score

AlAwam, Yousef Saad / Alshamrani, Othman Subhi

Abstract Statistics show that the United States is the largest energy consumer. One of the reasons behind this is the lack of long-term sustainability concepts in the fields of design and construction. Many studies have documented reports from developers, builders, and owners showing that the cost of green buildings has increased to as much as three times the real cost. In this study, a stochastic assessment model was developed applying a Monte Carlo simulation to measure the initial cost and green cost premium of different types of buildings. Furthermore, a risk assessment model was developed using the efficient frontier method to aid building owners and decision makers to balance between risk (cost) and reward (sustainability) and to select the best economical and sustainable alternatives. 200 buildings are investigated by converting their leadership in educational and environmental design (LEED) scores into monetary value, based on the attained certification level, building area, and building type. The output of the study shows that the highest cost premium is recorded at $38.6/LS.m² for platinum educational buildings, while the lowest cost is assessed at $10.6/LS.m² for platinum residential certification at a 95th percentile confidence level. The residential buildings are found to minimize the cost premium by 70% for educational buildings as compared to 60% for commercial buildings.