ECONOMIC ANALYSIS OF GREEN BUILDINGS CERTIFICATION SYSTEMS IN EMERGING ECONOMIES
Abstract
The construction sector has embraced approaches toward sustainability by incorporating green certification frameworks such as IGBC, BREEAM, and LEED. However, the understanding of these systems poses a problem in terms of developing economies along with their economic feasibility within a cost-benefit analysis and ROI perspective over time. This study investigates in detail the economics of green certification systems and developing markets by assessing financial capital expenditures, operational capital expenditures, financial provisions, and lifecycle value. The study attempts to estimate the financial feasibility, both quantitative and qualitative, measuring total costs incurred in certification to stakeholders regarded as the fi under, tenants, and decision makers putting forward devising case studies and empirical evidence from selected countries. Other barriers identified culminated to existing legislations, green market structures, and availability of green technologies. Evidence indicates substantial barriers to green certification remain fixed costs; however, expenditures associated with energy, water, and maintenance in the long run offset initial costs substantially. The paper suggests that policy frameworks embedded within emerging markets need to align with policy guidelines aimed at certification schemes while also policy strategies meant to progressive adoption of sustainable building practices in these economies.