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Development of a prediction model for the cost saving potentials in implementing the building energy efficiency rating certification

Author

Listed:
  • Jeong, Jaewook
  • Hong, Taehoon
  • Ji, Changyoon
  • Kim, Jimin
  • Lee, Minhyun
  • Jeong, Kwangbok
  • Koo, Choongwan

Abstract

Building energy efficiency rating (BEER) certification is an energy performance certificates (EPCs) in South Korea. It is critical to examine the cost saving potentials of the BEER-certification in advance. This study aimed to develop a prediction model for the cost saving potentials in implementing the BEER-certification, in which the cost saving potentials included the energy cost savings of the BEER-certification and the relevant CO2 emissions reduction as well as the additional construction cost for the BEER-certification. The prediction model was developed by using data mining, life cycle cost analysis, real option valuation, and Monte Carlo simulation. The database were established with 437 multi-family housing complexes (MFHCs), including 116 BEER-certified MFHCs and 321 non-certified MFHCs. The case study was conducted to validate the developed prediction model using 321 non-certified MFHCs, which considered 20-year life cycle. As a result, compared to the additional construction cost, the average cost saving potentials of the 1st-BEER-certified MFHCs in Groups 1, 2, and 3 were predicted to be 3.77%, 2.78%, and 2.87%, respectively. The cost saving potentials can be used as a guideline for the additional construction cost of the BEER-certification in the early design phase.

Suggested Citation

  • Jeong, Jaewook & Hong, Taehoon & Ji, Changyoon & Kim, Jimin & Lee, Minhyun & Jeong, Kwangbok & Koo, Choongwan, 2017. "Development of a prediction model for the cost saving potentials in implementing the building energy efficiency rating certification," Applied Energy, Elsevier, vol. 189(C), pages 257-270.
    • Handle: RePEc:eee:appene:v:189:y:2017:i:c:p:257-270
    DOI: 10.1016/j.apenergy.2016.12.024
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