Chris Heywood, Eckhart Hertzsch and Mirek Piechowski
The purpose of this paper is to report an investigation of the effect of location on refurbishment strategies to reduce greenhouse gas (GHG) emissions using the temperate and…
Abstract
Purpose
The purpose of this paper is to report an investigation of the effect of location on refurbishment strategies to reduce greenhouse gas (GHG) emissions using the temperate and sub-tropical urban locations in Australia. This occurred within a larger research project that investigated methods for sustainable refurbishments to office buildings and their optimized timing from an investment perspective.
Design/methodology/approach
An office building in Melbourne was used to develop seven sets of improvements using an integrated approach to upgrade mechanical services and the building envelope. Using asset management trigger points the impact on net present value and internal rate of return were calculated, taking into account the capital expenditure required, the energy savings due to the refurbishment, as well as a possible rental increase due to the upgrade and lesser operational energy bills for the tenants. To investigate the importance of the location attribute the upgraded building’s performance was modelled in a different climate by using a Brisbane weather file.
Findings
A number of unexpected results were found, including that the same sets of improvements had similar reductions in GHG emissions in the two locations, they had similar impacts on the investment criteria and when using the National Australian Building Energy Rating System it was shown that it was easier and cheaper to get an uplift in stars in Melbourne than Brisbane.
Research limitations/implications
This location-specific analysis is the result of using a more sophisticated and holistic methodology to analyse sustainable refurbishments that more closely resembles the complexity of the decision making required to make buildings more sustainable.
Practical implications
This paper provides a basis for property investors to make decisions about sustainable investments when location is important. This can occur when a portfolio is distributed across various climate zones.
Originality/value
The research project that the paper reports addresses the complexity of building attributes, possible sets of improvements to reduce GHG emissions and their investment decisions, within a life cycle view of assets. It is rare that this complexity is addressed as a whole, and rarer that locational climatic differences are examined.
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Eckhart Hertzsch, Christopher Heywood and Mirek Piechowski
The purpose of this paper is to present a methodology to improve decision making about investments that reduce buildings' energy consumption.
Abstract
Purpose
The purpose of this paper is to present a methodology to improve decision making about investments that reduce buildings' energy consumption.
Design/methodology/approach
A three‐stage methodology was developed and tested to analyse an existing Australian office building's energy use, its energy rating, and its life cycle investment. In total, seven cases of sets of improvements were modelled for energy performance. Their investment value was evaluated using a life cycle‐based analysis across several investment options.
Findings
A holistic approach to investment shows that the most effective sustainable refurbishments need not be the most expensive. Optimised investment can take advantage of the timing of both re‐investment in component renewal and efficiency gains from the refurbishment. Furthermore, relatively small changes in income can offset capital expenditure for refurbishments and protect against obsolescence.
Originality/value
Much work on sustainable refurbishments rarely considers the investment basis, across a life cycle, of that expenditure, generally seeing them as a cost and rarely considers the optimal time for that expenditure in the asset life cycle. This paper addresses both concerns.