Economic benefits evaluation of green building adoption in a developing region: a case study of Tanzania

Abstract

Purpose: While green buildings are lauded for their resource efficiency and economic benefits, the absence of practical evidence impedes their widespread adoption in developing regions. This study presents an economic evaluation of green buildings’ performance using energy and water consumption data. The underlying motive is to shed light on the uncertainties surrounding the benefits of adopting green buildings. Design/methodology/approach: This study adopted the quantitative approach by presenting the actual performance of green building energy and water usage. Moreover, the study employed the life cycle costing strategy to forecast cost savings. Findings: The study demonstrated that green buildings have the potential to achieve significant energy savings ranging from 8 to 57% annually. The finding underscores green buildings’ resource efficiency and points to their positive economic impact. The study also reveals that green buildings can lead to substantial energy and water cost savings in the shorter and longer terms. Nevertheless, green certification alone does not guarantee energy savings. Originality/value: Limited information exists regarding the economic advantages of green buildings in developing economies. This study addressed the prevailing research knowledge gap. The study provides data depicting the previous/historical, current and future performance of green buildings in a developing region.