Technology and Engineering
  • ISSN: 2333-2581
  • Modern Environmental Science and Engineering

Economic Cost-benefit Analysis of Green Building Based on the Low-carbon Economic Policy

Shiyu Wan, Yisheng Liu, and Ming Lai

Beijing Jiaotong University, Beijing, China

Abstract: The main policies in a city to deal with climate change are to promote energy saving, the reduction of carbon emission, and the construction of green building, which is also a kind of governance mechanism within the legal city planning and construction management system. However, in some areas, a lot of local governments and urban construction enterprises are still misunderstanding the concept of green building, especially in the application of low carbon technologies which may make some impact on the economic cost. At present, in this field, the discussion of the policy making is mainly aiming at the problem of technology application. As a decision maker or investor, it is essential to know the real meaning of green building and its economic efficiency. This paper makes an analysis on the current policy of green buildings and establishes the cost-benefit analysis method of green building based on the theory of property rights from a macro perspective, then points out that it is necessary to design a set of operational analysis tools for the project level, and should put the benefits of green building construction in a macro economy level. Green building with incremental costs will bring additional incremental investment, which will lead an additional increase in industrial output during the economic system, and thus will have a macro impact on the overall economy in turn.

Key words: green economics, cost-benefit analysis, green building policy

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