Analysis of the financial impacts of building performance standard penalties on commercial buildings in Aurora, Colorado

Landan Taylor (), Andrew Parker (), Nicholas Long () and Isabel Langlois ()
Additional contact information
Landan Taylor: National Renewable Energy Laboratory
Andrew Parker: National Renewable Energy Laboratory
Nicholas Long: National Renewable Energy Laboratory
Isabel Langlois: National Renewable Energy Laboratory

Environment Systems and Decisions, 2025, vol. 45, issue 3, 1-17

Abstract: Abstract Buildings are responsible for 30% of total energy consumption worldwide. To address building energy, jurisdictions in the USA have enacted Building Performance Standards (BPS) legislation. The objective of BPS is to reduce energy consumption in buildings, thereby reducing the energy burden on utility infrastructure and other externalities. This is accomplished by setting mandatory energy use limits coupled with penalties for exceeding those limits. One of the key questions in BPS policymaking is how these penalties might impact the finances of building owners and tenants. This paper presents an analysis of BPS penalties in Aurora, Colorado, specifically targeting buildings impacted by the adopted statewide BPS legislation. Several BPS penalty structures were applied to the affected building stock in Aurora, and the potential impacts on building owner returns and tenant rents were estimated. The results show that for some combinations of building types and penalty structures, potential rent increases due to penalties could match or exceed typical yearly rent increases. The results also show that in most cases, for Aurora, there was no statistically significant difference in impact between buildings located in under-resourced and well-resourced areas.

Keywords: Building performance standards; Under resourced; Well resourced; Communities; Aurora; CO; Rent increases; Energy reductions; Split incentive (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s10669-025-10037-y Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:envsyd:v:45:y:2025:i:3:d:10.1007_s10669-025-10037-y

Ordering information: This journal article can be ordered from
https://www.springer.com/journal/10669

DOI: 10.1007/s10669-025-10037-y

Access Statistics for this article

More articles in Environment Systems and Decisions from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().