October 31, 2003—Investments in green buildings pay for themselves 10 times over, according to a new study for 40 California agencies. The study, by the Capital E group, Lawrence Berkley Laboratory and participating California state agencies, is the most definitive cost-benefit analysis of green building ever conducted.
With this study, the California Department of Finance, for the first time, has signed off on the existence of financial benefits associated with improved health productivity and lowered operations and maintenance costs in green buildings. The California Board of Regents also drew on the early findings of this study and is moving forward in pushing for all state higher education new construction to be “green.” This study, drawing on national data for a hundred green buildings and an in depth review of several hundred existing studies, found that sustainable buildings are a very cost-effective investment.
USGBC President & CEO, Christine Ervin who served as a member of an advisory committee that guided the study, says, “The studys conclusive findings demonstrate that green building is cost-effective and makes good business sense.”
The report concluded that financial benefits of green design are between $50 and $70 per square foot in a LEED building, over 10 times the additional cost associated with building green. The financial benefits were found to be in lower energy, waste and water costs, lower environmental and emissions costs, and lower operational and maintenance costs and increased productivity and health.
For a copy of the report, visit USGBC.
