According to research, the building and construction industry are largely aware of the fact that buildings contribute to almost 20 percent of greenhouse gas emissions, leading to global warming and hence acknowledge the significance of the role this industry can and must play to reduce the carbon footprints and try to eliminate or reduce the negative environmental impacts of their business (Stern, 2008). However, the lack of enthusiasm within the industry or reluctance to implement the green initiatives is largely on account of the contradictions present in the literature and differing views and opinion of experts, regarding the credibility of the issue. There is an ongoing debate within the industry regarding the greenhouse effect of buildings, we’re deciding whether it is a market-driven approach or a mandatory environmental regulation imposed by the government, for various purposes is relatively difficult. One such example of government-imposed obligation is the public display and/ or sharing of Energy Performance Certificates by buildings in accordance with the EU directive on the Energy Performance of Buildings (Fuerst, McAllister, 2008).Furthermore another reason for the lack of acceptance and implementation of green measures within this industry is the fact that there is a severe lack of understanding among the appraisers who are significantly conservative with regard to their approaches and business practices, and display a severe lack of training and knowledge regarding the consequences of acceptance of environmentally friendly practices such as the use of cooling systems, and better airflow or use of environmentally friendly materials for construction etc among others. However, with the growing literature regarding the harmful side effects and the possible benefits of using environmentally friendly practices, is likely to bring about positive changes within the industry (Fuerst, McAllister, 2008). It has been increasingly established through research that the greener buildings are more likely as compared to their counterparts, to retain more value. This is evident from the fact that many of the green realtors are planning on retaining their property owing to the rise in demand for them in the coming years. It is highly likely that the demand for green buildings is likely to soar, as research regarding their long term benefits pile up, with the result that they will soon outgrow the demand for the brown buildings (Miller, 2011). The key findings regarding green buildings as compared to the conventional buildings can be summarized as follows (Richard, 2009. Buttimer, Ott, 2010):The green buildings tend to charge more rent as compared to conventional buildings. The green buildings require more care as compared to the non-conventional buildings.
Economic Efficiency of Green Buildings