From Landscape Architecture Foundation (LAF) By Jason Twill, LEED AP and Stuart Cowan, PhD
The built environment and building industry together account for about 50% of U.S carbon emissions and contribute to a web of significant, interconnected problems: climate change, persistent toxins in the environment, dwindling supplies of potable water, flooding, ocean acidification, habitat loss and more. Over the past decade, great strides have been made in terms of energy efficiency, water and waste consumption, and sustainable materials, and a critical mass of innovative professionals has emerged.
Yet a major barrier to the broad adoption of advanced green building practices is our 20th century real estate financial system. Current lending approaches, appraisal protocols, and valuation models do not reflect the true externalized costs of doing “business as usual” nor do they fully capture the additional environmental and social benefits created by building green. These barriers affect the perceived financial viability of environmentally sound projects and slow innovation and market growth. To fully realize true sustainability, a shift in assessing and evaluating real estate investment is urgently needed.
The Economics of Change is a groundbreaking effort to do just that.
The overarching goal of The Economics of Change is to shift mainstream real estate practices to document the full value of a built environment that is compatible with healthy, natural systems. Correcting real estate incentives and improving financial models will shift investment toward buildings and infrastructures that are financially rewarding, resilient, socially just and economically restorative.
A project’s integrated value includes its traditional market value AND the environmental and social value it provides. This research seeks to shift the investment barrier to the right through recognition of integrated value, potentially unlocking a trillion dollars of investment towards restorative building.