An Architect's Guide to Designing for Sustainability - Part Two
Economic capital in sustainable development terms goes way beyond the economic viability exercises commonly undertaken in construction projects although costs and cost savings do feature prominently in much green building literature. In conventional economic theory the use of economic capital is related to the manner in which “scarce resources are and ought to be allocated between all their possible uses” (Hillebrandt, 1974). In general, economic capital will include resources such as materials, energy, financial capital, buildings, and machinery. In terms of the ‘lean’ manufacturing concept, waste is included as a resource since it originates as a consequence of resource use. In addition, the concept of ‘Whole Life Cycle’ values resources from their source (cradle) to their final disposal (grave) and typically includes first cost together with operating and maintenance costs, periodic replacement, and residual value. Essentially the triple bottom line approach seeks to harmonise the imperatives of economic capital with those of related capitals such as social and environmental.
Figure 1: Whole Life Cycle Approach
Go to 16.1 Theme: Economic prosperity
16.2 Theme: Consumption and production patterns
Back to 15 Methods and Materials