Quantifying the Return on Investment for Businesses in Adopting Green Construction Practices
DOI:
https://doi.org/10.55439/GED/vol1_iss10/a583Keywords:
Green Building, Sustainability, Return on Investment (ROI), Latent Variable Models (LVM), Environmental Benefits, Economic Impacts, Green Building Certification.Abstract
As the global community grapples with environmental issues, businesses are increasingly adopting sustainable
practices, particularly resource-intensive and environmentally impactful operations in the construction industry.
This study aims to comprehensively analyze the economic implications of adopting green building practices, providing
valuable insights for businesses considering sustainability initiatives.
The results of our study reveal a subtle relationship between the adoption of green building practices and financial
performance. We show that, contrary to conventional understanding, businesses can achieve significant ROI through
sustainable initiatives.
Our research shows that investments in green building practices not only contribute to environmental protection, but also
have long-term economic benefits.
Furthermore, this study provides a framework for businesses to assess the potential ROI of specific green practices and
prioritize investments accordingly.
The result of the study is very important for decision makers in construction companies (politicians and stakeholders in
the construction industry) to enable them to make rational choices that combine economic growth with environmental
responsibility.
