GREEN CONSTRUCTION: BALANCING ECONOMIC EFFICIENCY AND ENVIRONMENTAL SUSTAINABILITY

ABSTRACT

In the context of the global environmental crisis and growing demands for sustainable development, the concept of ‘green construction’ is becoming particularly relevant. However, the high cost of implementing environmental technologies is often seen as a key barrier to its widespread adoption. This article examines the relationship between environmental sustainability and economic efficiency using the example of the implementation of green building elements in investment and construction projects. Based on a comparative analysis of traditional and green construction projects, capital and operating costs, payback period, and overall economic effect are assessed. The results show that with an increase in initial investment of 8–15%, operating costs are reduced by 20–35%, which ensures the economic feasibility of implementing environmental solutions in the medium and long term.

Keywords: green construction, sustainable development, investment costs, operating costs, energy efficiency, economic efficiency.

Modern construction requires not only economic efficiency, but also environmental safety. The growth in energy consumption, greenhouse gas emissions, and environmental degradation justifies the introduction of sustainable development principles, one of the tools of which is green construction. It reduces the negative impact of buildings on the environment at all stages of their life cycle. Despite the environmental benefits, economic feasibility remains debatable: initial investments are often higher than in traditional construction. Therefore, it is important to find a balance between economic efficiency and environmental sustainability in projects.

The study aims to assess the balance between economic efficiency and environmental sustainability in the implementation of green construction projects.

Research hypothesis: the application of green construction principles leads to an increase in initial investment, but reduces operating costs and generates a positive economic effect in the long term.

To achieve the set goal, the following tasks are addressed in this work:

1) to analyse the essence and principles of green building;

2) to identify the main areas of increased costs in the implementation of green projects;

3) to conduct a comparative economic analysis of traditional and environmentally oriented construction projects;

4) to assess the payback period for green technologies.

The following research methods were used in this work: analysis and systematisation of scientific sources, comparative economic analysis, calculation of investment efficiency indicators, and modelling.

The object of the study is a hypothetical residential apartment building with an area of 10,000 m², built using traditional technology and applying the principles of green construction. The calculation includes capital costs, operating costs, payback period, and total economic effect over 20 years of operation.

Green construction refers to a system of designing, constructing, and operating buildings that focuses on minimising resource consumption, reducing pollutant emissions, and creating a comfortable environment for people [1]. The key principles of green building are energy efficiency, rational use of water resources, use of environmentally friendly materials, reduction of waste, and improvement of the indoor environment.

According to data from the World Green Building Council, buildings are one of the largest consumers of energy and sources of carbon dioxide emissions, which confirms the importance of introducing green technologies [4]. In the Russian Federation, issues of energy efficiency and environmental friendliness in construction are also enshrined at the state level and reflected in the regulatory documents of the Ministry of Construction of the Russian Federation [3].

The economic efficiency of green construction is primarily reflected in lower operating costs. Although the initial investment in such projects is on average 10–20% higher than for traditional buildings, significant savings in energy, water, and maintenance costs are achieved during operation [2].

According to research, energy-efficient buildings can reduce electricity consumption by 30–40% and heating costs by up to 50% [5]. This leads to a reduction in the total life cycle costs of a facility, which is particularly important for commercial real estate and social infrastructure facilities.

To get a clear idea of how the economic and environmental effects of green construction relate to each other, let's move on to a cost analysis. As an example, let's look at a typical construction project and compare its technical and economic indicators when using traditional and green technologies.

1. Capital expenditure

Let us assume the following initial data: the cost of traditional construction is 60,000 roubles per square metre. The total cost of the project is 600 million roubles. An increase in the cost of the ‘green’ project — 12%.

In this case, the investment costs for the green facility will amount to:

600 million × 1.12 = 672 million roubles.

Additional investments will amount to 72 million roubles.

2. Operating costs

Average annual operating costs:

1) traditional building — 1,800 roubles per square metre per year

2) green building — 30% reduction

Then:

1) traditional building: 1,800 × 10,000 = 18 million roubles per year

2) green building: 1,260 × 10,000 = 12.6 million roubles per year

The savings will amount to 5.4 million roubles per year.

3. Payback period for additional investments

Payback period: 72 million / 5.4 million ≈ 13.3 years

Given that the building has a service life of more than 50 years, green investments are economically justified.

4. Total economic effect over 20 years

Savings over 20 years: 5.4 × 20 = 108 million roubles.

Net economic effect: 108 – 72 = 36 million roubles.

Thus, the introduction of green technologies provides not only environmental benefits, but also direct economic benefits:

Environmental effects:

1) a reduction in energy consumption of 25–40%;

2) reduction of greenhouse gas emissions;

3) reduction in water consumption by 30–50%;

4) reduction in the amount of construction waste.

Socio-economic effects:

1) an increase in the market value of the property;

2) increased investment attractiveness;

3) improving the quality of life of the population;

4) reducing healthcare costs by improving the microclimate.

In practice, green buildings are 7–15% more expensive than their counterparts on the market, which compensates for the developer's costs at the sales stage.

The calculations confirm the hypothesis that the increase in capital costs when implementing green projects is offset by a reduction in operating costs in the medium term. A comprehensive approach is particularly important: the use of energy-efficient technologies, automated control systems, and renewable energy sources.

The study found that green construction is not only an environmentally sustainable model for the development of the construction industry, but also an economically efficient one. Additional investments amounting to 10–15% of the project cost are recouped through reduced operating costs over a period of 12–15 years, after which a sustainable positive economic effect is achieved.

References:

1. U.S. EPA. Green Building. Basic Information [Online resource]. — URL: https://archive.epa.gov/greenbuilding/web/html/about.html (date of access: 27 November 2025).
2. AVL V. Cost savings of building sustainably [Online resource]. — URL: https://www.avlv.com/cost-savings-of-building-sustainably/ (date of access: 27 November 2025).
3. Ministry of Construction of the Russian Federation. Energy efficiency of buildings and structures: official website. — 2024. — URL: https://www.minstroyrf.gov.ru (date of access: 20 November 2025).
4. World Green Building Council. Leaders Commit to Save 209 Million Tonnes of Carbon Emissions Equivalent (CO₂e) by 2050 at Launch of World Green Building Council’s Net Zero Carbon Buildings Commitment [Online resource]. — URL: https://worldgbc.org/article/leaders-commit-to-save-209-million-tonnes-of-carbon-emissions-equivalent-co2e-by-2050-at-launch-of-world-green-building-councils-net-zero-carbon-buildings-commitment/ (date of access: 27 November 2025).
5. Sarah Lee. The Economics of Energy Efficiency in Green Buildings [Online resource]. — URL: https://www.numberanalytics.com/blog/economics-of-energy-efficiency-in-green-buildings/ (date of access: 27 November 2025).