Modeling the private financial returns from green building investments

Journal of Green Building

Volumn 2, Issue 1, 2007, Pages 97-105

  Ross, Brian ^a   López Alcalá, Mario ^b   Small III, Arthur A ^c  

^a Lexecon Inc   (United States)

^b ICF International   (United States)

^c PENNSYLVANIA STATE UNIVERSITY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 60549086190     PISSN: 15526100     EISSN: 19434618     Source Type: Journal    
DOI: 10.3992/jgb.2.1.97     Document Type: Article

References (13)

1. This point is drawn from several sources, including Kats et al. and others found on the US Green Building Council's research page. These reports were accessed 12.16.2006 at http://www.usgbc.org/DisplayPage.aspx?CMSPageID=78&.
2. Kats, Greg et al. "The Costs and Financial Benefits of Green Buildings: A report to California's Sustainable Building Task Force." October 2003. Accessed 2.7.2007 at web site of California Integrated Waste Management Board, http://www.ciwmb.ca.gov/greenbuilding/Design/CostIssues.htm#Cost&Benefit.
3. For further discussion of IRR, we recommend Brealey, Richard A., and Stewart C. Meyers. Principles of Corporate Finance, 7th edition. McGraw Hill Companies. pp. 96-105.
4. Fowler, K.M., and E.M. Rauch. "Sustainable Building Rating Systems Summary." US General Services Administration. Accessed 12.16.206 at https://www.usgbc.org/ShowFile.aspx?DocumentID=1915.
5. In this sense, we were also asked to omit the LEED certification level that Verde attained.
6. US Green Building Council. "LEED-NC V2.2" October 2005. Accessed 12.16.2006 at https://www.usgbc.org/File-Handling/show_general_file.asp?DocumentID=1095.
7. Chalifoux, Alan. "Using Life Cycle Costing and Sensitivity Analysis to "Sell" Green Building Features." Journal of Green Building, Spring 2006. Vol. 1, No. 2: 39-48.
8. Brennan M., and W. Torous, "Individual Decision-Making and Investor Welfare," in: Economic Notes 1999, Heft 28(2), S. 119-143.
9. Savings resulting from reduced water consumption were not included in this analysis. These savings amount to approximately $300 annually from the pre-renovation water cost of $550-roughly, 53% less.
10. To find the NPV of any given cash flow, standard software packages can be used that have integrated NPV as automatic functions in their spreadsheets. This same applies to the IRR that follows the discussion.
11. Brealey, Richard A., and Stewart C. Myers. 2000. Principles of Corporate Finance, 6th ed. New York: Irwin McGraw-Hill.
12. A BTU is defined as the amount of heat required to raise the temperature of one pound avoirdupois of water by one degree Fahrenheit.
13. The source of the data is the Energy Information Administration at http://www.eia.doe.gov/emeu/steo/pub/contents.html.