Fostering the use of sustainable design to reduce energy use and GHG emissions at Canadian universities: a life cycle cost analysis approach

Abstract

Purpose The purpose of this study is to examine the application of sustainable building design and operation within a university setting to determine its economic efficacy and potential for further university investment. Design/methodology/approach This study incorporated a life cycle cost analysis (LCCA), simple payback period and discounted payback period calculations to determine the return on investment, including a sensitivity analysis when comparing the energy use and financial benefits of the sustainable design of a multi-use facility at Toronto Metropolitan University with buildings of similar size and use-type. Findings It was found that there is a positive business argument for Canadian Universities to consider the use of sustainable design to reduce energy use and greenhouse gas (GHG) emissions. A reasonable payback period and net present value within an institutional context were determined using a life-cycle cost assessment approach. Research limitations/implications This study was limited to the measure of only a single location. Certain assumptions regarding energy pricing and interest rates and the related sensitivities were anchored on a single year of time, and the results of this study may be subject to change should those prices or rates become significantly different over time. Considerations for future research include a longitudinal approach combined with a more detailed analysis of the effect of use-type on the variables discussed. Practical implications For university administrators, the results of this study may encourage institutions such as universities to approach new building projects through the lens of energy efficiency and environmental sustainability. Social implications GHG emissions are a well-proven contributor to global climate change, and buildings remain a significant source of GHG emissions in Canada due to their winter heating and summer cooling loads. As a result, sustainable building design on university campuses can mitigate this impact by optimizing and reducing energy consumption. Originality/value Research related to the economic evaluation of sustainable building design on university campuses is generally limited, and this study represents the first of its kind in regard to an LCCA of a sustainably designed building on a Canadian University campus.