Life Cycle Cost Analysis of Nearly-Zero Energy Buildings: An Introduction to the Methodologies

Given the paramount importance of a life cycle approach to the building sector and its significant share of the total energy consumption and the subsequent impacts on the economic aspects of the sustainable development goals, this chapter aims to review the current frameworks and provide an introduction for the standard methods of life cycle costing developed by international research and policy institutes. It discusses the life cycle costing application in assessing the economic performance of buildings, including the requirements and calculation methods with a life cycle approach. The economic indicators and the macroeconomic parameters in the life cycle cost analysis of the building sector will be elaborated on and discussed. The barriers to implementing a life cycle cost analysis will be reviewed and clarified. This chapter is, therefore, expected to draw attention from academies, industries, and policymakers working on evaluating the economic performance of the sustainable building and construction sector. It is anticipated to become a guide for future studies by introducing the existing methodologies and the solutions for the current barriers in the economic assessment of the building sector.