IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v238y2014i2p607-619.html
   My bibliography  Save this article

An Activity-Based Costing decision model for life cycle assessment in green building projects

Author

Listed:
  • Tsai, Wen-Hsien
  • Yang, Chih-Hao
  • Chang, Jui-Chu
  • Lee, Hsiu-Li

Abstract

Carbon emissions are an increasingly important consideration in sustainable environmental development. In the green building industry, green construction cost controls and low-carbon construction methods are considered to be the key barriers encountered. Based on Corporate Social Responsibility (CSR) policy, management of carbon emissions from green building projects contributes to the acquisition of accurate building cost information and to a reduction in the environmental impact of these projects. This study focuses on the CO2 emission costs and low-carbon construction methods, and proposes a 0–1 mixed integer programming (0–1 MIP) decision model for integrated green building projects, using an Activity-Based Cost (ABC) and life cycle assessment (LCA) approach. The major contributions of this study are as follows: (1) the integrated model can help construction company managers to more accurately understand how to allocate resources and funding for energy saving activities to each green building through appropriate cost drivers; (2) this model provides a pre-construction decision-making tool which will assist management in bidding on environmentally-friendly construction projects; and (3) this study contributes to the innovation operation research (OR) literature, especially in regard to incorporating the life cycle assessment measurement into construction cost management by utilizing a mixed decision model for green building projects.

Suggested Citation

  • Tsai, Wen-Hsien & Yang, Chih-Hao & Chang, Jui-Chu & Lee, Hsiu-Li, 2014. "An Activity-Based Costing decision model for life cycle assessment in green building projects," European Journal of Operational Research, Elsevier, vol. 238(2), pages 607-619.
    • Handle: RePEc:eee:ejores:v:238:y:2014:i:2:p:607-619
    DOI: 10.1016/j.ejor.2014.03.024
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0377221714002537
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ejor.2014.03.024?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Wendy Y. Chen & C.Y. Jim, 2011. "Resident valuation and expectation of the urban greening project in Zhuhai, China," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 54(7), pages 851-869, October.
    2. Antunes, C.Henggeler & Martins, A.Gomes & Brito, Isabel Sofia, 2004. "A multiple objective mixed integer linear programming model for power generation expansion planning," Energy, Elsevier, vol. 29(4), pages 613-627.
    3. Lee, Cheng F. & Lin, Sue J. & Lewis, Charles, 2008. "Analysis of the impacts of combining carbon taxation and emission trading on different industry sectors," Energy Policy, Elsevier, vol. 36(2), pages 722-729, February.
    4. Lin, Boqiang & Li, Xuehui, 2011. "The effect of carbon tax on per capita CO2 emissions," Energy Policy, Elsevier, vol. 39(9), pages 5137-5146, September.
    5. Wen-Hsien Tsai & Sin-Jin Lin & Ya-Fen Lee & Yao-Chung Chang & Jui-Ling Hsu, 2013. "Construction method selection for green building projects to improve environmental sustainability by using an MCDM approach," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 56(10), pages 1487-1510, December.
    6. Kee, Robert, 2008. "The sufficiency of product and variable costs for production-related decisions when economies of scope are present," International Journal of Production Economics, Elsevier, vol. 114(2), pages 682-696, August.
    7. Dekker, Rommert & Bloemhof, Jacqueline & Mallidis, Ioannis, 2012. "Operations Research for green logistics – An overview of aspects, issues, contributions and challenges," European Journal of Operational Research, Elsevier, vol. 219(3), pages 671-679.
    8. Ibrahim Kamal Abd Rahman & Normah Omar & Zubaidah Zainal Abidin, 2003. "The Applications Of Management Accounting Techniques In Malaysian Companies: An Industrial Survey," Journal of Financial Reporting and Accounting, Emerald Group Publishing Limited, vol. 1(1), pages 1-12, January.
    9. Li, Y.P. & Huang, G.H. & Nie, X.H. & Nie, S.L., 2008. "A two-stage fuzzy robust integer programming approach for capacity planning of environmental management systems," European Journal of Operational Research, Elsevier, vol. 189(2), pages 399-420, September.
    10. Johansson, Bengt, 2006. "Climate policy instruments and industry--effects and potential responses in the Swedish context," Energy Policy, Elsevier, vol. 34(15), pages 2344-2360, October.
    11. Tsai, Wen-Hsien & Lee, Kuen-Chang & Liu, Jau-Yang & Lin, Hsiu-Ling & Chou, Yu-Wei & Lin, Sin-Jin, 2012. "A mixed activity-based costing decision model for green airline fleet planning under the constraints of the European Union Emissions Trading Scheme," Energy, Elsevier, vol. 39(1), pages 218-226.
    12. Chang, Yuan & Ries, Robert J. & Wang, Yaowu, 2010. "The embodied energy and environmental emissions of construction projects in China: An economic input-output LCA model," Energy Policy, Elsevier, vol. 38(11), pages 6597-6603, November.
    13. Hoinka, Krzysztof & Ziębik, Andrzej, 2010. "Mathematical model for the choice of an energy management structure of complex buildings," Energy, Elsevier, vol. 35(2), pages 1146-1156.
    14. Zheng, Guozhong & Jing, Youyin & Huang, Hongxia & Zhang, Xutao & Gao, Yuefen, 2009. "Application of Life Cycle Assessment (LCA) and extenics theory for building energy conservation assessment," Energy, Elsevier, vol. 34(11), pages 1870-1879.
    15. Absi, Nabil & Dauzère-Pérès, Stéphane & Kedad-Sidhoum, Safia & Penz, Bernard & Rapine, Christophe, 2013. "Lot sizing with carbon emission constraints," European Journal of Operational Research, Elsevier, vol. 227(1), pages 55-61.
    16. Liu, Pei & Pistikopoulos, Efstratios N. & Li, Zheng, 2010. "An energy systems engineering approach to the optimal design of energy systems in commercial buildings," Energy Policy, Elsevier, vol. 38(8), pages 4224-4231, August.
    17. Derigs, Ulrich & Illing, Stefan, 2013. "Does EU ETS instigate Air Cargo network reconfiguration? A model-based analysis," European Journal of Operational Research, Elsevier, vol. 225(3), pages 518-527.
    18. Kunsch, P. & Springael, J., 2008. "Simulation with system dynamics and fuzzy reasoning of a tax policy to reduce CO2 emissions in the residential sector," European Journal of Operational Research, Elsevier, vol. 185(3), pages 1285-1299, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wen-Hsien Tsai, 2018. "Green Production Planning and Control for the Textile Industry by Using Mathematical Programming and Industry 4.0 Techniques," Energies, MDPI, vol. 11(8), pages 1-24, August.
    2. Mohamed Marzouk & Eslam Mohammed Abdelkader & Mohamed El-zayat & Ahmed Aboushady, 2017. "Assessing Environmental Impact Indicators in Road Construction Projects in Developing Countries," Sustainability, MDPI, vol. 9(5), pages 1-21, May.
    3. Yongguang Zou & Yuemei He & Weiling Lin & Sha Fang, 2021. "China’s regional public safety efficiency: a data envelopment analysis approach," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 66(2), pages 409-438, April.
    4. Wen-Hsien Tsai & Shi-Yin Jhong, 2018. "Carbon Emissions Cost Analysis with Activity-Based Costing," Sustainability, MDPI, vol. 10(8), pages 1-26, August.
    5. Wen-Hsien Tsai & Po-Yuan Chu & Hsiu-Li Lee, 2019. "Green Activity-Based Costing Production Planning and Scenario Analysis for the Aluminum-Alloy Wheel Industry under Industry 4.0," Sustainability, MDPI, vol. 11(3), pages 1-20, February.
    6. Chu-Lun Hsieh & Wen-Hsien Tsai & Yao-Chung Chang, 2020. "Green Activity-Based Costing Production Decision Model for Recycled Paper," Energies, MDPI, vol. 13(10), pages 1-23, May.
    7. Wen-Hsien Tsai & Jui-Chu Chang & Chu-Lun Hsieh & Tsen-Shu Tsaur & Chung-Wei Wang, 2016. "Sustainability Concept in Decision-Making: Carbon Tax Consideration for Joint Product Mix Decision," Sustainability, MDPI, vol. 8(12), pages 1-22, November.
    8. Wen-Hsien Tsai & Shang-Yu Lai & Chu-Lun Hsieh, 2023. "Exploring the impact of different carbon emission cost models on corporate profitability," Annals of Operations Research, Springer, vol. 322(1), pages 41-74, March.
    9. Faris Elghaish & M. Reza Hosseini & Saeed Talebi & Sepehr Abrishami & Igor Martek & Michail Kagioglou, 2020. "Factors Driving Success of Cost Management Practices in Integrated Project Delivery (IPD)," Sustainability, MDPI, vol. 12(22), pages 1-14, November.
    10. Wen-Hsien Tsai & Shang-Yu Lai, 2018. "Green Production Planning and Control Model with ABC under Industry 4.0 for the Paper Industry," Sustainability, MDPI, vol. 10(8), pages 1-29, August.
    11. Wang, Xiaojun & Chan, Hing Kai & Li, Dong, 2015. "A case study of an integrated fuzzy methodology for green product development," European Journal of Operational Research, Elsevier, vol. 241(1), pages 212-223.
    12. Hanks, Robert W. & Lunday, Brian J. & Weir, Jeffery D., 2020. "Robust goal programming for multi-objective optimization of data-driven problems: A use case for the United States transportation command's liner rate setting problem," Omega, Elsevier, vol. 90(C).
    13. Marc Jourdaine & Philippe Loubet & Guido Sonnemann & Stéphane Trébucq, 2021. "The ABC‐LCA method for the integration of activity‐based costing and life cycle assessment," Business Strategy and the Environment, Wiley Blackwell, vol. 30(4), pages 1735-1750, May.
    14. Wen-Hsien Tsai & Shu-Hui Lan & Cheng-Tsu Huang, 2019. "Activity-Based Standard Costing Product-Mix Decision in the Future Digital Era: Green Recycling Steel-Scrap Material for Steel Industry," Sustainability, MDPI, vol. 11(3), pages 1-30, February.
    15. Bodendorf, Frank & Xie, Qiao & Merkl, Philipp & Franke, Jörg, 2022. "A multi-perspective approach to support collaborative cost management in supplier-buyer dyads," International Journal of Production Economics, Elsevier, vol. 245(C).
    16. Wen-Hsien Tsai & Chih-Hao Yang & Cheng-Tsu Huang & Yen-Ying Wu, 2017. "The impact of the carbon tax policy on green building strategy," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 60(8), pages 1412-1438, August.
    17. Jingyi Zhao & Chunhai Gao & Tao Tang, 2022. "A Review of Sustainable Maintenance Strategies for Single Component and Multicomponent Equipment," Sustainability, MDPI, vol. 14(5), pages 1-22, March.
    18. Zhang, Xiaoling, 2015. "Green real estate development in China: State of art and prospect agenda—A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 47(C), pages 1-13.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wen-Hsien Tsai, 2018. "Carbon Taxes and Carbon Right Costs Analysis for the Tire Industry," Energies, MDPI, vol. 11(8), pages 1-22, August.
    2. Wen-Hsien Tsai & Chih-Hao Yang & Cheng-Tsu Huang & Yen-Ying Wu, 2017. "The impact of the carbon tax policy on green building strategy," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 60(8), pages 1412-1438, August.
    3. Lee, Kuen-Chang & Tsai, Wen-Hsien & Yang, Chih-Hao & Lin, Ya-Zhi, 2018. "An MCDM approach for selecting green aviation fleet program management strategies under multi-resource limitations," Journal of Air Transport Management, Elsevier, vol. 68(C), pages 76-85.
    4. Wen-Hsien Tsai & Yin-Hwa Lu, 2018. "A Framework of Production Planning and Control with Carbon Tax under Industry 4.0," Sustainability, MDPI, vol. 10(9), pages 1-24, September.
    5. Wen-Hsien Tsai & Shang-Yu Lai & Chu-Lun Hsieh, 2023. "Exploring the impact of different carbon emission cost models on corporate profitability," Annals of Operations Research, Springer, vol. 322(1), pages 41-74, March.
    6. Wen-Hsien Tsai & Shi-Yin Jhong, 2018. "Carbon Emissions Cost Analysis with Activity-Based Costing," Sustainability, MDPI, vol. 10(8), pages 1-26, August.
    7. Wen-Hsien Tsai & Po-Yuan Chu & Hsiu-Li Lee, 2019. "Green Activity-Based Costing Production Planning and Scenario Analysis for the Aluminum-Alloy Wheel Industry under Industry 4.0," Sustainability, MDPI, vol. 11(3), pages 1-20, February.
    8. Tsai, Wen-Hsien & Lin, Sin-Jin & Liu, Jau-Yang & Lin, Wan-Rung & Lee, Kuen-Chang, 2011. "Incorporating life cycle assessments into building project decision-making: An energy consumption and CO2 emission perspective," Energy, Elsevier, vol. 36(5), pages 3022-3029.
    9. Tsai, Wen-Hsien & Lee, Kuen-Chang & Liu, Jau-Yang & Lin, Hsiu-Ling & Chou, Yu-Wei & Lin, Sin-Jin, 2012. "A mixed activity-based costing decision model for green airline fleet planning under the constraints of the European Union Emissions Trading Scheme," Energy, Elsevier, vol. 39(1), pages 218-226.
    10. Wen-Hsien Tsai, 2018. "Green Production Planning and Control for the Textile Industry by Using Mathematical Programming and Industry 4.0 Techniques," Energies, MDPI, vol. 11(8), pages 1-24, August.
    11. Wen-Hsien Tsai & Shuo-Chieh Chang & Yuchun Teng, 2024. "Equilibrium between Environmental and Economic Objectives: An Activity-Based Costing Approach Application for Carbon Emissions Management in the Aluminum Alloy Wheel Industry," Energies, MDPI, vol. 17(6), pages 1-34, March.
    12. M. Turkensteen (Marcel) & van den Heuvel, W., 2019. "The trade-off between costs and carbon emissions from lot-sizing decisions," Econometric Institute Research Papers EI2019-19, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    13. Konur, Dinçer, 2014. "Carbon constrained integrated inventory control and truckload transportation with heterogeneous freight trucks," International Journal of Production Economics, Elsevier, vol. 153(C), pages 268-279.
    14. Cui, Qiang & Li, Ye & Wei, Yi-Ming, 2017. "Exploring the impacts of EU ETS on the pollution abatement costs of European airlines: An application of Network Environmental Production Function," Transport Policy, Elsevier, vol. 60(C), pages 131-142.
    15. Y Bouchery & Asma Ghaffari & Zied Jemai & Jan C Fransoo, 2016. "Sustainable transportation and order quantity: insights from multiobjective optimization," Post-Print hal-01954465, HAL.
    16. Bozorgi, Ali & Pazour, Jennifer & Nazzal, Dima, 2014. "A new inventory model for cold items that considers costs and emissions," International Journal of Production Economics, Elsevier, vol. 155(C), pages 114-125.
    17. Barbosa-Póvoa, Ana Paula & da Silva, Cátia & Carvalho, Ana, 2018. "Opportunities and challenges in sustainable supply chain: An operations research perspective," European Journal of Operational Research, Elsevier, vol. 268(2), pages 399-431.
    18. Othman, M.R. & Martunus & Zakaria, R. & Fernando, W.J.N., 2009. "Strategic planning on carbon capture from coal fired plants in Malaysia and Indonesia: A review," Energy Policy, Elsevier, vol. 37(5), pages 1718-1735, May.
    19. Palak, Gökçe & Ekşioğlu, Sandra Duni & Geunes, Joseph, 2014. "Analyzing the impacts of carbon regulatory mechanisms on supplier and mode selection decisions: An application to a biofuel supply chain," International Journal of Production Economics, Elsevier, vol. 154(C), pages 198-216.
    20. Bozorgi, Ali, 2016. "Multi-product inventory model for cold items with cost and emission consideration," International Journal of Production Economics, Elsevier, vol. 176(C), pages 123-142.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ejores:v:238:y:2014:i:2:p:607-619. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eor .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.