ZEMCH 2015 - International Conference Proceedings | Page 101

International Conference | Bari - Lecce, Italy Session I - II FINANCIAL ANALYSIS OF GREEN MOCK-UP BUILDINGS IN TROPICAL EMERGING COUNTRIES Karl Wagner1, Gabriele Arese2 & Alberto De Marco3 1 School of Business, University of Kuala Lumpur, Malaysia, [email protected] 2 Department of Management and Production Engineering, Politecnico di Torino, Italy, [email protected] 3 Department of Management and Production Engineering, Politecnico di Torino, Italy, [email protected] Abstract In recent years, global warming has been identified as the most serious environmental problem facing our planet Earth. Malaysia, like most of the rapidly developing nations, is facing a significant challenge by spreading carbon and greenhouse gas emissions into the atmosphere. According to UNEP SBCI and other independent sources, it is estimated that buildings contribute to as much as at least one third of total global greenhouse gas emissions. Thus, encouraging investments in energy efficient buildings is a chance that governments can grasp in order to reduce spreading gases into the atmosphere and improving living conditions. This study undertaken for low and zero energy efficient residential buildings for mass customization aims to present and share the findings of Green Building profitability. It considers the life cycle of green buildings and how to showcase cost-effective investments of residential sustainable buildings not only in Malaysia, but also other developing countries around the tropical belt. If successful, the findings can even encourage investors and owners to embark in energy efficient residential houses. The methodology for this study is developed through the analysis of two setup Mock-Up Green Buildings in Kuala Lumpur/Malaysia. Instead of running simulations, the authors use them as two case studies equipped with green elements. Demo Houses insulation performances are evaluated through data monitoring, and the Life Cycle Costing Approach is used as a tool to compare a sustainable demo house with a conventional one in terms of cost/benefits as well as cash flows analyses. Finally, a sensitivity analysis is conducted in order to study the financing plans and to design and evaluate an appropriate financial structure of debt and equity sources of funds. The conclusion of this paper demonstrates that investing in sustainable technology-based green buildings definitely produces larger financial value comparing to the conventional ones even with short-term considerations. Furthermore, it suggests and exemplifies a financial scheme and capital structure owners could use as a guide to pursue such capital projects. Keywords green buildings, energy efficiency, cash flow analysis, financial structure 99