Cost - Benefit Analysis of Green Building Based on Input - Output Theory

Abstract

Green building as an alternative to traditional building under environmental policy, is increasingly respected by the community. With regard to developers investing in green buildings, how to more accurately evaluate incremental costs and incremental benefits of green building projects becomes the key and different point during developers’ selection of green building projects because green buildings mainly embody their external benefits, while their internal financial benefits are not obvious. The paper firstly analyzes benefits of green building projects through financial evaluation and then analyzes incremental cost and benefits of multiple projects in combination with the Data Envelopment Analysis (DEA) model in order to determine efficiency of the decision-making units. At last, According to the input-output theory, the paper analyzes and perfects defects of green building projects in order to provide certain guidance for developers to choose and improve green building projects.