1.3 Research Objectives
This study was started with the question whether LEED certification system reflects cost
effectiveness well that has been raised in the field of green building evaluation. As mentioned in
the problem statement, it is deficient in the studies analyzing the cost effectiveness of LEEDcertified
buildings comparing to conventional buildings since there has been no consensus to
assess the cost effectiveness for LEED certification system. Until now, previous studies have
been focused on energy and water reduction of LEED buildings comparing with counterparts
which build in similar size and area. Even though there are a few studies on cost effectiveness of
the implementation of LEED system on the buildings, there is no approach to analyze the
correlation between the earned points on LEED credits associated energy and water reduction
and incremental investment which need to apply the sustainable items for LEED system.
The following three questions are raised in this research:
(1) Is the incremental investment proportional to green building performance?
(2) How much incremental investment is affordable for LEED certification depending on
levels?
(3) Does LEED Certification system reflect the cost effectiveness?
Therefore, the following objectives for this research were defined:
Investigate the relationship between LEED credits related to energy and water
consumption savings and the initial incremental costs.
Determine the discount payback period (DPP) is affordable as an indicator for the cost
effectiveness of green buildings.
Determine the most appropriate index reflecting the net savings of the life cycle costs
and cost effectiveness at once.
1.4 Research Methodology
The research followed the five steps as shown in Figure 1.1.