Assessing the Economic Challenges Toward the Implementation of Performance-Based Energy Code for Non-Residential Buildings in Iran

Developing performance-based energy codes could be one possible solution for improving the energy performance of buildings. Despite the progress in different dimensions of the new energy codes in developed countries, assessing the financial challenges in developing countries is less addressed. This study evaluated the economic challenges of developing performance-based energy codes compared to the existing prescriptive-based design approach and possible ways to solve these challenges. The results indicated that through creating a performance-based view, despite the significant improvement in the environmental performance during the operational period, the construction costs increased by 42%. Increased construction costs and low energy tariffs are considered the major economic challenges in applying performance-based energy codes in Iran and most Middle East countries. Eliminating energy subsidies and considering the indirect social emission costs of pollutants could be two possible solutions for a performance-based design approach. Considering the indirect cost of pollutant emissions and energy tariffs without subsidies, implementing performance-based energy codes is justified in Iran. Considering other Middle East countries' energy tariffs, only Jordan, Turkey, and UAE have adequate economic potential for implementing energy-efficient strategies and policies in the building sector. Graphical abstract