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

Jaewook Jeong, Taehoon Hong, Changyoon Ji, Jimin Kim, Minhyun Lee, Kwangbok Jeong and Choongwan Koo

Applied Energy, 2017, vol. 189, issue C, 257-270

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.

Keywords: Energy performance certificates; Building energy efficiency rating; Cost saving potentials; Energy benchmark; Life cycle cost analysis; Real option valuation (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (11)

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DOI: 10.1016/j.apenergy.2016.12.024

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