Cost and Payoff
The most criticized issue about constructing environmentally friendly buildings is the price. Photo-voltaics, new appliances, and modern technologies tend to cost more money. Most green buildings cost a premium of <2%, but yield 10 times as much over the entire life of the building. The stigma is between the knowledge of up-front cost vs. life-cycle cost. The savings in money come from more efficient use of utilities which result in decreased energy bills. It is projected that different sectors could save $130 Billion on energy bills. Also, higher worker or student productivity can be factored into savings and cost deductions.
Studies have shown over a 20 year life period, some green buildings have yielded $53 to $71 per square foot back on investment. Confirming the rentability of green building investments, further studies of the commercial real estate market have found that LEED and Energy Star certified buildings achieve significantly higher rents, sale prices and occupancy rates as well as lower capitalization rates potentially reflecting lower investment risk.
Read more about this topic: Green Building
Famous quotes containing the word cost:
“[M]y conception of liberty does not permit an individual citizen or a group of citizens to commit acts of depredation against nature in such a way as to harm their neighbors and especially to harm the future generations of Americans. If many years ago we had had the necessary knowledge, and especially the necessary willingness on the part of the Federal Government, we would have saved a sum, a sum of money which has cost the taxpayers of America two billion dollars.”
—Franklin D. Roosevelt (1882–1945)