Integrating life-cycle GHG emissions into a building’s economic evaluation

Abstract

Buildings contribute to greenhouse gas (GHG) emissions throughout their life—from material extraction and production to building demolition and disposal. Current GHG emission reduction efforts largely focus on building operation, typically ignoring embodied emissions. One of the main barriers affecting the uptake of embodied GHG emissions considerations is the uncertainty related to the economic value of a building with reduced life-cycle GHG emissions. A conceptual approach is presented for integrating the life-cycle GHG emissions of a building into an economic evaluation. A case study detached residential dwelling located in Melbourne, Australia, is used to demonstrate the approach using a range of economic valuation approaches. One approach, using a carbon tax, shows that the effective cost for a single household would be over A$2000 for the first year, rising to almost A$5000 in 10 years. Across the range of evaluation approaches considered, the total cost to the householder is found to be between A$4600 and A$7860. With the embodied GHG emissions accounting for over 66% of the case study’s life-cycle GHG emissions, the majority of the economic liability for the householder relates to the initial construction and ongoing material replacement of the building.