Title: Cost efficient low-emission housing: implications for household cash-flows in Melbourne

Authors: Trivess Moore; John Morrissey; Ralph Horne

Addresses: School of Property, Construction and Project Management, RMIT University, GPO Box 2476, Melbourne, Victoria, 3001, Australia ' Cleaner Production Promotion Unit, Department of Civil and Environmental Engineering, University College Cork, Western Road, Cork City, Ireland ' College of Design and Social Context, RMIT University, GPO Box 2476, Melbourne, Victoria, 3001, Australia

Abstract: A number of international jurisdictions have articulated a longer term goal of zero emission housing standards. However, in Australia, housing energy efficiency remains a contested policy area. In part, this is due to a lack of clear cost-benefit information on low emission housing standards, including impacts at the household level. This research investigated the lifetime economics of low emission housing options for typical housing in Melbourne, Australia. The analysis found that for a zero emission house, there was an additional capital cost of $25,637. This translated into extra yearly mortgage repayments of $2,117 at an interest rate of 7.89% across 25 years. However, energy efficiency cost savings of $1,547 a year were calculated, leaving a gap of $570/year in additional mortgage repayments. As a result, policy makers in Australia should focus on reducing upfront costs and developing innovative financial frameworks in order to make low emission housing achievable.

Keywords: housing policy; housing emissions; affordable; renewable energy; lifecycle costing; LCC; zero emission housing; ZEH; sustainable development; cost efficient housing; low emission housing; household cash flows; Australia; energy efficiency; cost savings; sustainability.

DOI: 10.1504/IJSD.2014.065327

International Journal of Sustainable Development, 2014 Vol.17 No.4, pp.374 - 386

Received: 12 Feb 2013
Accepted: 27 Feb 2013
Published online: 31 Oct 2014 *

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