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Cost–benefit analysis method for building solutions

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  • Araújo, Catarina
  • Almeida, Manuela
  • Bragança, Luís
  • Barbosa, José Amarilio

Abstract

The building sector is responsible for consuming approximately 40% of the final energy in Europe. However, more than 50% of this consumption can be reduced through energy-efficient measures. Our society is facing not only a severe and unprecedented environmental crisis but also an economic crisis of similar magnitude. In light of this, EU has developed legislation promoting the use of the Cost-Optimal (CO) method in order to improve building energy efficiency, in which selection criteria is based on life cycle costs. Nevertheless, studies show that the implementation of energy-efficient solutions is far from ideal. Therefore, it is very important to analyse the reasons for this gap between theory and implementation as well as improve selection methods. This study aims to develop a methodology based on a cost-effectiveness analysis, which can be seen as an improvement to the CO method as it considers the investment willingness of stakeholders in the selection process of energy-efficient solutions. The method uses a simple graphical display in which the stakeholders’ investment willingness is identified as the slope of a reference line, allowing easy selection between building solutions. This method will lead to the selection of more desired – from stakeholders’ point of view – and more energy-efficient solutions than those selected through the CO method.

Suggested Citation

  • Araújo, Catarina & Almeida, Manuela & Bragança, Luís & Barbosa, José Amarilio, 2016. "Cost–benefit analysis method for building solutions," Applied Energy, Elsevier, vol. 173(C), pages 124-133.
    • Handle: RePEc:eee:appene:v:173:y:2016:i:c:p:124-133
    DOI: 10.1016/j.apenergy.2016.04.005
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    1. Romero Rodríguez, Laura & Salmerón Lissén, José Manuel & Sánchez Ramos, José & Rodríguez Jara, Enrique Ángel & Álvarez Domínguez, Servando, 2016. "Analysis of the economic feasibility and reduction of a building’s energy consumption and emissions when integrating hybrid solar thermal/PV/micro-CHP systems," Applied Energy, Elsevier, vol. 165(C), pages 828-838.
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