Ekung, S; Odesola, I A and Adewuyi, T (2022) Green cost premium for attaining energy-efficiency rating in Nigeria's hot-humid residential buildings. International Journal of Building Pathology and Adaptation, 40(2), pp. 248-268. ISSN 23984708
Abstract
Purpose: The dearth of green standards (GS) in sub-Saharan Africa is alarming and the green cost premiums (GCP) in seeking certification in emerging markets are scanty. This paper studied the Building Energy-Efficiency Code of Nigeria (BEEC) and estimated the potential GCPs associated with the various energy-efficiency ratings. Design/methodology/approach: The study retrofitted 150 conventional residential bungalow and maisonette buildings using BEEC's energy-efficiency interventions and performed analytical estimating of the retrofitted designs. The mean cost premium associated with each energy-efficiency intervention is presented as well as their financial benefits and payback periods. The benefits are achievable financial-savings due to a reduction in energy consumption and savings in electricity payment estimated from the average energy demands of each building. An independent t-test was further conducted to determine the cost differential between energy-efficient design (ED) and conventional design over a five-year period. Findings: The potential GCPs and their payback periods are actually less than feared. The study showed that less than 5% and 21% extra funding would be required to achieve 1 to 4-Star and 5-Star energy-efficiency ratings involving passive design interventions and photovoltaic systems. Passive and active design interventions produced a financial savings of $8.08/m2 in electricity payment and $2.84/m2 per annum in energy consumption reduction. The financial-savings ($10.92/m2) was objective to pay-off the GCPs in less than four years. The independent t-test analysis showed the cost of ED is more economical after four years into the project lifecycle. Originality/value: The research provides cost benchmarks for navigating cost planning and budgetary decisions during ED implementation and births a departure point for advancing energy-efficient construction in developing markets from the rational economic decision perspective.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | analytical estimating; cost premium; emerging markets; energy-efficiency; sustainable design |
| Index terms: | photovoltaic, energy consumption, funding, markets, implementation, energy demand, residential building, efficiency, Nigeria, savings, active design, project lifecycle, payback, methodology, estimating, cost planning, certification, sustainable design, emerging market, passive design, energy-efficient design, Sub-Saharan Africa |
| Subjects: | project completion, user focus, construction type, sustainability and energy, financial and cost management, economic analysis, contractual arrangements, energy systems, research methods, performance management, physical geography and landforms, financial management, design process, sustainable design, Geography, administrative processes |
| Topics: | Sustainability, Procurement, Construction Technology, Business Strategy, Cost Management, Research Practice, Project Management, Geographical Context, Contract Administration, Design Practice, International Construction, Quality Management |
| Descriptive scope: | 3 PCT |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here