Jun-Hyung Kim, Myungsub Choi and Sang-Young Lee (2015-04), "Estimating the maximum feasible investment for the energy efficient housing - focusing on the Zero-Energy Housing," Journal of the Korean Planners Association, 50(3): 199-211. (in Korean)
Abstract
The government has recently introduced and enforced the energy efficient housing scheme including the zero-energy housing which has a net-zero energy consumption system based on the passive and active technologies. These technologies should result in the additional investment; however the economic feasibility of the investment has not been fully examined. This research aims to estimate the maximum investment for the energy efficient housing by analyzing the core benefit of the project – energy cost savings.
The analysis of the micro-data of Statistics Korea’s Household Income and Expenditure Survey shows that the maximum feasible investment increases as the energy efficiency develops, the discount rate drops and the operation period of housing extends. Considering the ‘business as usual’ costs, the maximum rates of increase in construction costs is about 18.2~23.1%. The rise of energy price in the future would increase this rate to 25.7~33.9%. Our current estimates of additional investments for the zero-energy housing development are more than 30 percent, which implies that the development would not meet the economic feasibility unless the discount rate is low and the energy prices keep increasing.
Keywords
Energy efficient housing; Zero-Energy Housing; Energy saving cost; Feasible maximum investment; Economic analysis
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