On the study of the credit-weighting scale in a building environmental assessment scheme

Abstract

A major strength of the voluntary building environmental assessment method is to encourage good environmental practice beyond the current industry practice. For a successful voluntary scheme, the credit scale must be attractive to investors and performance-based criteria should be used. However, most of the current schemes use a combination of prescriptive and performance-based criteria, and credits are allocated using subjective judgement, irrespective of cost and practical implications of attaining improved performances. This is pointed to the need to establish an incentive-crediting scheme, which is oriented towards performance-based scales having credits linked to cost and performance. In formulating the incentive-crediting scheme, the cost effectiveness of different energy-saving level in a base building is investigated under the premise that the investors would pursue a strategy in the most cost-effective manner. This paper presents a conceptual framework for policy makers to formulate an incentive-crediting scale for accrediting criteria within the greenhouse gas objectives of a building environmental assessment scheme in Hong Kong, aiming to attract participation of the profit-maximising investors. Establishment of an incentive-crediting scale starts from developing a carbon dioxide abatement curve for greenhouse gas emission. This is subsequently followed by dividing the maximum energy-saving potential into ten equal energy reduction intervals. The incentive-crediting scheme is formulated on a basis that proportionally more credits would be rewarded for diminishing investment return of consecutive reduction levels in a base building.