Playbook for Green Buildings + Neighborhoods | Learn | Buildings | Envisioning Green Buildings

Local governments just beginning a green building program sometimes face the challenge of overcoming misperceptions about cost.

Several studies have examined this issue:

“Examining the Cost of Green 2007,” a report by the international cost-management firm Davis Langdon, concluded: “There is no significant difference in average cost for green buildings as compared to non-green buildings.” The firm had also studied the issue in 2004 and had reached a similar conclusion.
“The Costs and Financial Benefits of Green Buildings,” a report developed for more than 40 state agencies in California by the consulting firm Capital E, found upfront cost increases ranged from nothing to 2 percent and lowered the expected lifetime operating costs by 20 percent — 10 times the initial investment.
The Sierra Club’s Cool Cash Report includes examples of municipal buildings that have achieved green ratings and are generating annual savings. For example, the Jack Evans Police Headquarters in Dallas, Texas, earned a LEED Silver certification and is generating $246,000 in annual energy savings.

Yet a recent survey found that building industry professionals in the United States estimate the cost premium at 16 percent. “Energy Efficiency in Buildings: Business Realities and Opportunities,” a report by the World Business Council for Sustainable Development, also found that they significantly underestimated buildings’ contribution to carbon dioxide emissions at 12 percent, well below the actual contribution of nearly 40 percent.

While misperceptions continue, there is mounting agreement among industry leaders that significant levels of energy efficiency can be achieved at no additional costs. An extract from The World Business Council for Sustainable Development’s article, The True Costs of Green Building:

"One study by McKinsey estimated that demand reduction measures with no net cost could cut in half expected growth in global electricity demand.

The Intergovernmental Panel on Climate Change (IPCC) Fourth Assessment Report estimated that by 2020 carbon dioxide emissions from building energy use can be reduced by 29 percent at no additional cost.

According to United Technologies Corporation Chairman and Chief Executive George David, “Existing technologies combined with common sense design can increase energy efficiency by 35 percent and reduce heating costs by 80 percent for the average building in industrialized markets.”

Costs and Financial Benefits of Green Buildings

Report to California’s Sustainable Building Task Force

Greening America’s Schools: Costs and Benefits

The cost and benefits of greening schools in the U.S.

True Costs of Green Building

Article outlining "The True Costs of Green Building"

Green Building Research Funding

An Assessment of Current Activity in the United States. The report outlines recent green building r...

Through operations, the residential sector generates 21% of greenhouse gas emissions, the commercial sector 17% and the industrial sector 10%. (US Energy Information Administration, 2003)