Ecological Indicators (Apr 2024)
Evaluating the economic sustainability of commercial complex greening based on cost-benefit analysis: A case study of Singapore’s Shaw center
Abstract
Commercial complex greening is the alternative to leading the greening development of public buildings, reducing the negative impact of buildings on the environment, and achieving sustainable development goals. However, the economic sustainability of commercial complex greening remains underinvestigated. This study investigated traditional building greening economic evaluation indicators and quantitative methods according to the characteristics of commercial complexes in to provide ideas on the economic evaluation of it to fill in the blanks of CBA analysis applied to the economics of greening systems of commercial buildings. Applying cost-benefit analysis, this study evaluated the economic sustainability of vertical greening systems (VGS) and green roof systems (GRS) installed on a commercial complex in Singapore using Net Present Value (NPV), Payback Period (PBP), and sensitivity analysis to quantify and integrate personal and social life cycle costs and benefits. The methodology was based on an extensive literature review in multiple fields and rational assumptions for unavailable data. The key findings were: 1) Commercial complex greening is a feasible investment. 2) VGS has a higher economic return value, whereas GRS can achieve faster payback. 3) Well-designed greening and vitality-boosting ideas bring more economic returns than tax incentives. 4) Property value improvement, maintenance cost, and fire risk reduction were sensitive factors affecting NPV, among which property value played a decisive role, especially for VGS. 5) Extensive construction and tax policies can reduce costs and improve the economy. 6) Personal benefits generated by greening are greater than social benefits. This critical case study of a commercial complex greening project provides greening developers and operators a better understanding of the economic competitiveness of commercial complex greening implementation to promote the market application and a rationale for governments to revise existing or formulate new measures to encourage the development of green industries. Although the conclusion of this study only focuses on the economic sustainability of greening in commercial complexes in Singapore due to sample size limitations, achieving a more significant localized evaluation is potential by collecting and replacing data corresponding to regions based on this research framework. Meanwhile, quantifying more economic indicators, comparing the economy of different greening modes in commercial complexes and arranging an international database about the economic sustainability of commercial complex greening are worth further exploration in the future.
