A cost-effectiveness assessment method and tool for assessing energy efficiency improvements in buildings

Pekka Tuominen (Corresponding Author), Francesco Reda, Waled Dawoud, Bahaa Elboshy, Ghada Elshafei, Abdelazim Negm

    Research output: Contribution to journalArticleScientificpeer-review

    Abstract

    This paper proposes a method and a tool based on cost-effectiveness analysis (CEA) for assessing energy efficiency improvements in buildings using a case example from Egypt. Commonly used methods for economic appraisal of energy efficiency improvements have shortcomings that warrant the study of alternative methods. To offer avenues for improving the current economic assessment of energy efficiency, methods used in other fields are studied. A chain of argumentation for choosing a suitable method is developed. As a result, CEA appears to be best suited to the problem at hand. It can be used to, first, define the cost of the primary aim of saving energy and, second, allow the comparison of alternative investments in sustainable energy, not limited to energy conservation alone. A case building is studied with a calculation using a CEA method adapted for energy efficiency improvements in buildings to demonstrate the use of the method. In the case studied the CEA calculation produced costs of 0.26–0.60 USD/kWh for energy saved by the energy efficiency investments made. A systematic appraisal of cost-effectiveness of alternative energy efficiency projects would allow pointing out the most effective ones in terms of energy saved per money spent.
    Original languageEnglish
    Pages (from-to)67-81
    JournalGreen Finance
    Volume1
    Issue number1
    DOIs
    Publication statusPublished - 2019
    MoE publication typeNot Eligible

    Fingerprint

    Energy efficiency
    Cost-effectiveness
    Cost-effectiveness analysis
    Energy
    Costs
    Alternative investments
    Energy conservation
    Warrants
    Egypt
    Alternative energy
    Argumentation
    Energy saving
    Sustainable energy
    Economics
    Economic appraisal

    Keywords

    • energy efficiency
    • cost-effectiveness
    • economic efficiency
    • investment
    • budgeting

    Cite this

    Tuominen, Pekka ; Reda, Francesco ; Dawoud, Waled ; Elboshy, Bahaa ; Elshafei, Ghada ; Negm, Abdelazim. / A cost-effectiveness assessment method and tool for assessing energy efficiency improvements in buildings. In: Green Finance. 2019 ; Vol. 1, No. 1. pp. 67-81.
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    abstract = "This paper proposes a method and a tool based on cost-effectiveness analysis (CEA) for assessing energy efficiency improvements in buildings using a case example from Egypt. Commonly used methods for economic appraisal of energy efficiency improvements have shortcomings that warrant the study of alternative methods. To offer avenues for improving the current economic assessment of energy efficiency, methods used in other fields are studied. A chain of argumentation for choosing a suitable method is developed. As a result, CEA appears to be best suited to the problem at hand. It can be used to, first, define the cost of the primary aim of saving energy and, second, allow the comparison of alternative investments in sustainable energy, not limited to energy conservation alone. A case building is studied with a calculation using a CEA method adapted for energy efficiency improvements in buildings to demonstrate the use of the method. In the case studied the CEA calculation produced costs of 0.26–0.60 USD/kWh for energy saved by the energy efficiency investments made. A systematic appraisal of cost-effectiveness of alternative energy efficiency projects would allow pointing out the most effective ones in terms of energy saved per money spent.",
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    A cost-effectiveness assessment method and tool for assessing energy efficiency improvements in buildings. / Tuominen, Pekka (Corresponding Author); Reda, Francesco; Dawoud, Waled; Elboshy, Bahaa; Elshafei, Ghada; Negm, Abdelazim.

    In: Green Finance, Vol. 1, No. 1, 2019, p. 67-81.

    Research output: Contribution to journalArticleScientificpeer-review

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