Economics bridge between theory and practice of Sustainable built environment: a case for marginal benefit and marginal cost
Common economic gauges that validate Sustainable Built Environment (SBE) in households may cause for such projects to be shelved especially when the result of commercial feasibility study does not favour the stakeholders. It is a fact that the capital cost of Energy Efficient (EE) equipment and R...
| Main Authors: | , , |
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| Format: | Conference or Workshop Item |
| Language: | English |
| Published: |
2008
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| Subjects: | |
| Online Access: | http://eprints.usm.my/34544/ http://eprints.usm.my/34544/1/HBP7.pdf |
| _version_ | 1848877372050243584 |
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| author | Mohd Zaki, Ar Wan Rahmah Nawawi, Abdul Hadi Sh Ahmad, Sabarinah |
| author_facet | Mohd Zaki, Ar Wan Rahmah Nawawi, Abdul Hadi Sh Ahmad, Sabarinah |
| author_sort | Mohd Zaki, Ar Wan Rahmah |
| building | USM Institutional Repository |
| collection | Online Access |
| description | Common economic gauges that validate Sustainable Built Environment
(SBE) in households may cause for such projects to be shelved especially when the
result of commercial feasibility study does not favour the stakeholders. It is a fact that
the capital cost of Energy Efficient (EE) equipment and Renewable Energy (RE) system
are more expensive than the conventional methods. However, SBE is now necessary
and the gap between theory and practical of SBE in relation to economics aspect must
be narrowed. The economics of SBE must not only assert the environmental implication
but also make tangible its benefit to the household for championing the cause. In
Economics, Marginal Cost (MC) and Marginal Benefits (MB) measure additional benefits
of every additional costs of investment at a specific level of production and consumption;
and Economists suggests that effective gain and loss must be compared to the status
quo, i.e., Relative Position (RP). These Economics theories of MC, MB and RP are
adapted to measure the progression of SBE with regards to lighting requirements in a
living/dining area simulated to represent two types of houses: with and without Passive
Architecture (PA) design strategies. Both are applied with conventional incandescent
light bulbs and EE light fittings as well as RE in lieu of the mains electricity supply. The
comparative approach shows the value of MB and MC at every stage of the SBE
progression and this enables the household to make informed decision at a margin. The
result suggests that the value of MB is more than MC when both cases use EE light
fittings, i.e., approximately RM2 gain for every RM1 cost. It is also found that RE
benefits the household more in PA case. This approach makes economic sense in so
far encouraging household to opt for SBE. |
| first_indexed | 2025-11-15T17:14:23Z |
| format | Conference or Workshop Item |
| id | usm-34544 |
| institution | Universiti Sains Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T17:14:23Z |
| publishDate | 2008 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | usm-345442017-05-23T09:18:52Z http://eprints.usm.my/34544/ Economics bridge between theory and practice of Sustainable built environment: a case for marginal benefit and marginal cost Mohd Zaki, Ar Wan Rahmah Nawawi, Abdul Hadi Sh Ahmad, Sabarinah TH1-9745 Building construction Common economic gauges that validate Sustainable Built Environment (SBE) in households may cause for such projects to be shelved especially when the result of commercial feasibility study does not favour the stakeholders. It is a fact that the capital cost of Energy Efficient (EE) equipment and Renewable Energy (RE) system are more expensive than the conventional methods. However, SBE is now necessary and the gap between theory and practical of SBE in relation to economics aspect must be narrowed. The economics of SBE must not only assert the environmental implication but also make tangible its benefit to the household for championing the cause. In Economics, Marginal Cost (MC) and Marginal Benefits (MB) measure additional benefits of every additional costs of investment at a specific level of production and consumption; and Economists suggests that effective gain and loss must be compared to the status quo, i.e., Relative Position (RP). These Economics theories of MC, MB and RP are adapted to measure the progression of SBE with regards to lighting requirements in a living/dining area simulated to represent two types of houses: with and without Passive Architecture (PA) design strategies. Both are applied with conventional incandescent light bulbs and EE light fittings as well as RE in lieu of the mains electricity supply. The comparative approach shows the value of MB and MC at every stage of the SBE progression and this enables the household to make informed decision at a margin. The result suggests that the value of MB is more than MC when both cases use EE light fittings, i.e., approximately RM2 gain for every RM1 cost. It is also found that RE benefits the household more in PA case. This approach makes economic sense in so far encouraging household to opt for SBE. 2008-12 Conference or Workshop Item PeerReviewed application/pdf en http://eprints.usm.my/34544/1/HBP7.pdf Mohd Zaki, Ar Wan Rahmah and Nawawi, Abdul Hadi and Sh Ahmad, Sabarinah (2008) Economics bridge between theory and practice of Sustainable built environment: a case for marginal benefit and marginal cost. In: 2nd International Conference on Built Environment in Developing Countries., 3rd- 4th December 2008, Universiti Sains Malaysia, Pulau Pinang. |
| spellingShingle | TH1-9745 Building construction Mohd Zaki, Ar Wan Rahmah Nawawi, Abdul Hadi Sh Ahmad, Sabarinah Economics bridge between theory and practice of Sustainable built environment: a case for marginal benefit and marginal cost |
| title | Economics bridge between theory and practice of
Sustainable built environment: a case for marginal benefit
and marginal cost
|
| title_full | Economics bridge between theory and practice of
Sustainable built environment: a case for marginal benefit
and marginal cost
|
| title_fullStr | Economics bridge between theory and practice of
Sustainable built environment: a case for marginal benefit
and marginal cost
|
| title_full_unstemmed | Economics bridge between theory and practice of
Sustainable built environment: a case for marginal benefit
and marginal cost
|
| title_short | Economics bridge between theory and practice of
Sustainable built environment: a case for marginal benefit
and marginal cost
|
| title_sort | economics bridge between theory and practice of
sustainable built environment: a case for marginal benefit
and marginal cost |
| topic | TH1-9745 Building construction |
| url | http://eprints.usm.my/34544/ http://eprints.usm.my/34544/1/HBP7.pdf |