Existing perceptions surrounding the cost premiums associated with building green can have a substantial impact on demand in this emerging market.  While consumers may prefer to purchase greener buildings, cost considerations may cause some to hesitate, unless they are educated on the tangible benefits these buildings provide.  Raising consumer and developer awareness of these benefits is central to the advancement of the green building industry.

In fact, the cost of building green is negligible when the building owner, architect, engineers and other building professionals are engaged in the project from the start, and undertake what is known as an Integrated Design Process.  Further, educating building operators on the innovative systems in the building will ensure that it is operated to perform as designed so that annual and long term cost savings can be realized. 

Much of the current consumer demand for greener development has arisen from a desire for healthier environments and the need to reduce energy costs.  Prospective homebuyers are even willing to pay a small premium for building space that offers healthier indoor and outdoor environments, especially when life cycle cost analysis demonstrates a return on the added investment within five years. 

Evidence of the economic gains to be realized by building green continues to grow.  Excerpts from several studies that have examined the financial aspects of sustainable building practices are provided below. 

There is currently a strong business case for green buildings in Canada when a more holistic, longer-term view of real building costs is incorporated.
Canada Green Building Council, 2005. A Business Case for Green Buildings in Canada.

[The study] concludes that while evidence is as yet thin, sufficient exists to say that green buildings do indeed make money… These conclusions came through interviews with developers, owners and occupiers at green office, industrial, retail, residential and educational buildings across Canada, the United Kingdom and the United States. The findings are also borne out by an extensive review of academic and industry literature.
Royal Institute of Chartered Surveyors, 2005. Green Value: Growing Buildings, Growing Assets.

Efficient design practices are cost-effective just from their energy savings; the resulting productivity gains make them indispensable. This paper documents eight cases in which efficient lighting, heating, and cooling have measurably increased worker productivity, decreased absenteeism, and/or improved the quality of work performed. They also show that efficient lighting can measurably increase work quality by reducing errors and manufacturing defects.
Romm, JJ and Browning, WD. 1994. Greening the Building and the Bottom Line.

Arguments that protecting the earth’s climate will cost a lot rest on theoretical economic assumptions flatly contradicted by business experience. Most climate/economics models assume that almost all energy-efficiency investments, cost-effective at present prices, have already been made. Actually, huge opportunities to save money by saving energy exist, but are being blocked by dozens of specific obstacles at the level of the firm, locality, or society.
“Lovins, AB and Lovins, LH. 1997. Climate: Making Sense and Making Money.