Monetary valuation of the environmental benefits of green building: A case study of China

Reducing negative impacts on the environment is the main benefit of green buildings. However, these benefits are typically evaluated using environmental indicators with different units and implications. Thus, comparisons among different technologies and projects with various benefits are difficult to perform. Moreover, the impact of green building development on economic system is difficult to analyze because of the lack of available data. This study proposes a method of identifying, quantifying and valuing the environmental benefits of green buildings based on the contributions of typical technologies. The environmental benefits are fully identified based on the cause-effect chain associated with changes in environmental endpoints caused by green technologies. Then, a valuation method is proposed, and it consists of the following four steps: quantifying the technical indicators using the application criteria and green technology impacts, quantifying the environmental indicators using available and reliable research data, valuing the environmental benefits using appropriate monetary valuation methods, and calculating the lifecycle benefits using the discounted cash flow method. All projects accredited by the Chinese Assessment Standard of Green Building from 2008 to 2015 were evaluated using the environmental valuation method. The results showed that 75% of typical green technologies could reduce the negative impacts on the environment through different endpoints. The benefit per unit area was valued as ¥ 3138.1 on average. The majority of the benefits (48.36%) were produced by underground space utilization. The public green building produced more environmental value than the residential green building. Overall, the environmental benefits were sufficient to cover the incremental costs of green building. The results obtained by the proposed assessment method provide more comprehensive information to related sectors than the green level standards; moreover, the benefits obtained by different technologies and projects with various environmental impacts can be compared, and important input data can be obtained for analyzing the macroeconomic effects of green building development.