Economic analysis on Chinese green buildings in the context of life cycle costing

Chinese economy develops quickly and exerts heavy negative burdens on the Chinese environment. As a key to these problems, green buildings, though they own the nature of many advantages, develop slowly in China. Positive externalities exist in green buildings so that some Chinese academicians conclude that green buildings will be financial infeasibility. However, in the context of Life Cycle Costing, if we consider more factors and adopt more suitable evaluation equation, then we will find that green buildings are financial feasibility and in many times better than conventional buildings. For developing countries, because of higher discount rates, green buildings are not as favorable as in developed countries. Therefore, governments should grant preferential tax policies such as lower tax and other fiscal allowances to the enterprises that produce green buildings to stimulate the development of green buildings.