Publication
Title
The anatomy of investing in energy efficient buildings
Author
Abstract
A building investment is a real decision because the allocated resources are typically irrevocable for long times. Investment appraisal is a logic method to process elapsing time, uncertain benefits and costs, and irrevocability related to decisions. Most analysts stop halfway the appraisal process when they carefully assess net present values and their sensitivity to uncertain future events. But sidelining irrevocability and the dynamic sequential analysis of future events and actions cause wrong decisions when the energy performance endowment of a new building is decided. Irrevocability and preclusion are explained, and their impact illustrated with a case study. Adopting realistic assumptions about the uncertain future and applying the proper methodology reveal as financially best choice the immediate investment in passive attributes and items. Irrevocability is of high relevance for building efficiency investments and for the implementation of the EU-2010 buildings directive
Language
English
Source (journal)
Energy and buildings. - Lausanne
Publication
Lausanne : 2011
ISSN
0378-7788
Volume/pages
43:4(2011), p. 905-914
ISI
000288592600017
Full text (Publisher's DOI)
Full text (publisher's version - intranet only)
UAntwerpen
Faculty/Department
Research group
Publication type
Subject
Affiliation
Publications with a UAntwerp address
External links
Web of Science
Record
Identification
Creation 10.01.2011
Last edited 19.09.2017
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