Cost-Justifying Green Buildings to Skeptics

Many are concerned about what might happen to the green building market when climate change denial is seeing a political resurgence in the US and UK. Yet there is a way to defend green buildings using a business and economics lens palatable even to the biggest green building skeptic. Long used in the world of large-cap infrastructure projects, "cost-benefit analysis" is the gold standard when it comes to weighing different design options for their Net Present Value, Life Cycle Cost, Return on Investment, etc.

Over the past year, two real estate industry leaders, Prologis and San Francisco International Airport, have recently taken that approach and improved upon it, using rigorous economic methodologies from academia and industry alike to also translate into dollar terms the non-financial value of their green building designs, including enhanced occupant health and productivity from improved IEQ and lighting, increased property value and reduced flood risk from green infrastructure, and improved community support from preserving local air and water quality.