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Environmental Technology, MaterialsScience, Architectural Design, andReal Estate Market Evaluation: AMultidisciplinary Approach for Energy-Efficient BuildingsElena Fregonara, Rocco Curto, Mario Grosso, Paolo Mellano, DianaRolando & Jean-Marc TullianiPublished online: 16 Jan 2014.

To cite this article: Elena Fregonara, Rocco Curto, Mario Grosso, Paolo Mellano, Diana Rolando &Jean-Marc Tulliani (2013) Environmental Technology, Materials Science, Architectural Design, andReal Estate Market Evaluation: A Multidisciplinary Approach for Energy-Efficient Buildings, Journalof Urban Technology, 20:4, 57-80, DOI: 10.1080/10630732.2013.855512

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Environmental Technology, Materials Science,

Architectural Design, and Real Estate Market

Evaluation: A Multidisciplinary Approach for Energy-

Efficient Buildings

Elena Fregonara, Rocco Curto, Mario Grosso, Paolo Mellano, Diana Rolando,and Jean-Marc Tulliani

ABSTRACT The aim of this paper is to illustrate a multidisciplinary approach to selecting,designing, and evaluating sustainable solutions for energy-efficient buildings that are inte-grated into their neighborhoods at the early design stage. The paper discusses the StrategicChoice Approach (SCA), a tool which supports decision-makers in shaping problems incomplex contexts. SCA is proposed as a tool for developing a sort of preliminary “plat-form” in which information derived from four disciplines (environmental technology,materials science and technology, architectural design, and real estate market evaluation)could be shared and accessed by stakeholders during the early design stage in order tomanage the multidimensionality and uncertainty of building design. The challenge is tostructure a support tool for designers, builders, developers, and urban planning authoritiesinvolved in sustainability-oriented land administration.

KEYWORDS urban administration and planning; smart cities; technology for energy-efficient buildings; economic evaluation and real estate market evaluation; strategic choiceapproach

Introduction

Globally, buildings account for more than 40 percent of primary energy use and 24percent of greenhouse gas emissions. Buildings are also substantial users of water,materials, and land. Reducing the environmental impact of buildings is thus ahigh priority for tackling climate change and other sustainability challenges. Torespond to this challenge, builders and regulators around the world have beenexperimenting with lower-impact buildings over recent decades (Riedy et al.,2011).

The European Union has made progress with regard to energy-efficientbuildings, specifically by revising the legislative framework and promotingresearch activities. European initiatives in this regard include the European Initiat-ive on Smart Cities, which covers various aspects such as the economy, govern-ance, participation, culture, and quality of life. Although a detailed definition of

Correspondence Address: Elena Fregonara, Politecnico di Torino, Architecture and DesignDepartment, Viale Mattioli 39 10125, Turin, Italy E-mail: elena.fregonara@polito.it

Journal of Urban Technology, 2013Vol. 20, No. 4, 57–80, http://dx.doi.org/10.1080/10630732.2013.855512

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the Smart Cities concept, about which a wide range of literature is available, (see,for example, http://eur-lex.europa.eu; Allwinkle and Cruickshank, 2011; Cara-gliu et al., 2011) is beyond the scope of this paper, it should be mentioned thatthe project described in this paper forms part of the wider European program con-cerning investment in the development of low-carbon technologies—The StrategicEnergy Technology Plan for Long Term Sustainability (SET-Plan) (http://ec.europa.eu/energy/technology/set_plan/set_plan_en.htm). The SET-Plan pro-vides measures for planning, reinforcement, resource use, and internationalcooperation in the field of energy technology, making use of The InformationSystem for the European Strategic Energy Technology Plan (SETIS), a territorialinformation system managed by the Joint Research Center (http://setis.ec.europa.eu/). Core aspects of the project include energy savings and the energy-efficient performance of buildings, monitoring electricity consumption, coolingtechniques, exploration of renewable energies, and specific issues connectedwith three main research topics: research policies oriented towards technicaland social solutions; systemic decisions relating to energy sources and their distri-bution; housing and local communities. In addition, the project focuses on specificresearch topics such as energy saving, smart metering, and green IT.

The large number of topics involved entails contributions from various scien-tific communities and has set in motion international cooperation initiatives,including some in universities (see, for example, www.seeit-alliance.eu). Sincethe 1990s the framework has been consolidated, shifting focus from single build-ings to whole urban areas. More recently, the European Union took an importantstep when it set the goal of reducing emissions by 80–95 percent for a fossil-freeenergy system by 2050 (European Community, 2011). Some member states haveset themselves even more stringent timescales: for example, the goal of theDanish Energy Agency is exclusively fossil-free energy for heating and electricityby 2035 (http://www.ens.dk/da-DK/Politik/Dansk-klima-og-energi-politik/Voresenergi/Forside.aspx). The results achieved so far will be consolidatedthrough the next Framework Program for Research and Innovation for theperiod 2014–2020, commonly known as “Horizon 2020” (http://ec.europa.eu/research/horizon2020/index_en.cfm).

Aim of the Paper

The core topic of this paper is the planning, programming, and structuring choicesrelated to energy-efficient buildings (EEB). Its purpose is to reconcile different,sometimes contrasting objectives and new or pre-existing regulatory constraints.The issue is a particularly thorny one in the early design stage. This is the delicatestage in real estate development, consisting of discussion and dialogue amongpromoters, designers, planners, and local authorities.

A multidisciplinary approach is suggested, in particular when the project andthe decision making are characterized by a high level of complexity. Nevertheless,such a multidisciplinary approach requires the presence of different kinds ofinformation, which needs to be structured and shared in order to make decisionsclear. This can support the decision-making process, while preventing thedevelopment of the project from being slowed by potential difficulties duringthe early design stage. At the same time, the approach must be capable of over-coming the difficulty of transferring and coordinating information across

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disciplines. In practical terms, this involves the use of approaches that can dealwith the complexity, the multidimensionality, and the uncertainty of thecontext, and, ultimately, also harmonize “input information” obtained from differ-ent sources (disciplines). The output expected is shared decisions, compromises,preference rankings, and a clear decision-making process with a role for all stake-holders.

The work thus sets out to illustrate a multidisciplinary approach for facil-itating the structuring of the decision-making processes. As far as possible ittakes into account aspects related to the sustainability of buildings, with theaim of identifying those that are capable of steering decision-making atvarious levels: governmental, administrative, socioeconomic, financial, techni-cal, etc. Furthermore, sustainable solutions regarding the design-and-construc-tion process are considered in the context of a “round table” at whichpolicymakers and technicians (teams of experts) might interact and sharedecisions.

A new, preliminary, cohesive decision-making platform is proposed as asupport for decision-making working groups in linking information derivedfrom the tools/approaches of each discipline. Indeed, harmonizing these differentknowledge sectors requires an instrument capable of handling the heterogeneityof data from the four disciplines and coordinating the information for thedesired kind of project to be more effectively implemented.

The Strategic Choice Approach—which is described in the followingsection—is proposed as a means of developing a sort of preliminary “platform”where information can be shared and accessed by all decision makers duringthe early design stage. It is important to stress that this information should beturned into specific decision-making problems, which are to be solved througha process of interaction among stakeholders, on the basis of an actual casestudy. The decision-making working group can move towards, and work on,such a platform by means of specific software capable of highlighting the inter-actions between the various aspects of the project.

The approach aims to involve designers, builders, developers, and urban-planning authorities, while taking into account building users, owners, andfacility managers. Special attention is devoted to economic perspectives andreal-estate markets. The existing literature on the topic infrequently considersreal estate markets and project evaluation, and it is our intention to add thosetopics to the literature (Masera et al., 2011).

The multidisciplinary approach presupposes a number of core aspects thatcan only be dealt with through "harmonizing" different areas of knowledge.These areas include: (a) how to deal with interoperability between different build-ing design demands and functions to ensure efficiency, flexibility, quality, andreliability of the solutions chosen; (b) how to include the real estate market interms of that market’s dynamism, demand and supply behaviors, asset prices,and value systems, in the early stage of the decision-making process; (c) how tomanage a multidisciplinary approach to the decision-making process, takinginto account the various aspects affecting sustainability and energy efficiency indesign, such as microclimate, economics, technology, architectural design (userbehavior), and materials science.

In order to illustrate the aim of the paper more clearly, Figure 1 sets out thelogical framework of our proposal.

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The Methodology Proposed: The Strategic Choice Approach

It is important to structure the related decision problems, identifying possible sol-utions and clarifying the decision context during the early design phase ofcomplex urban planning processes.

For this purpose, the Strategic Choice Approach (SCA) has been chosen fromamong available problem-shaping instruments. Possible preparatory phases for apotential application of the SCA on an actual case study are proposed, in order tohighlight how it might support decision makers during the early design phases.

The general objective of this tool is to provide a new, cohesive decision-making platform for a multidisciplinary approach that can aid designers, builders,developers, and urban planning authorities during the early design stages ofenergy-efficient buildings.

SCA methodology was first illustrated by John Friend and William Jessops(Friend and Jessops, 1969) and developed by John Friend, Allen Hickling, andtheir team at the Institute for Operational Research (IOR), in order to provide con-crete support for decision-making processes characterized by a high level ofuncertainty (Friend and Hickling, 1987). SCA is a multicriteria approach toshaping decision problems, designing and comparing solutions, and controllinguncertainties (with regard to multicriteria approaches see also Bianciardi et al.,2002; Department for Communities and Local Government, 2009; Norese et al.,2008); it is an “open project” method which is also capable of managing the com-plexities relating to urban and regional transformation projects and assisting sta-keholders in clarifying the structure and nature of uncertainties and of strategicdecisions to be made during the early design stage of projects. In fact, SCAmakes it possible to structure decision problems into sub-problems and to identifyand select, on the basis of the criteria of urgency and importance, a sub-group ofactions and projects (alternative options) that are mutually compatible and con-sistent with the future scenario envisaged by the stakeholders and by thoseresponsible for managing the process. Furthermore, it assists in identifyingthose elements that prevent decision makers from making decisions about the

Figure 1: Logical framework of the proposalSource: Authors

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problem to be structured, by identifying concrete, potentially complementaryactions that aim to reduce the level of uncertainty (explorative options).

SCA methodology is based on an open and flexible process, divided into thefollowing four complementary modes of operation: (1) shaping; (2) designing; (3)comparing; (4) choosing (See Figure 2).

The shaping mode is the most delicate phase, during which SCA requires thedefinition of a decision-making scheme representing the problem to be solved: theprincipal decision problems are structured in decision areas, while the aspects thatmake the decisions difficult are structured in uncertainty areas.

The uncertainty areas, which represent the main strength of SCA, are classifiedinto three broad types:

1) Uncertainties about the working Environment (UE);2) Uncertainties about guiding Values (UV);3) Uncertainties about Related choices (UR).

All of these uncertainties can be related to one (or more) of these types. Then,a series of exploratory options can be associated with each uncertainty area, inorder to identify concrete, potentially complementary actions which aim toreduce the level of uncertainty. Each uncertainty area is also characterizedby a level of prominence (the ability to influence decisions) and a level of tract-ability, which represents the difficulty of reducing the uncertainty area ana-lyzed.

The decision areas are the second strength of SCA during the shaping mode.They represent the problematic aspects associated with the main problem to bestructured, considering all relations between decisions and all uncertaintyaspects. Decision areas can concern different kinds of problems, including:

Figure 2: The four SCA modes of operationSource: Based on Friend, 2002

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. If it is opportune to fund a project

. Where to develop an activity

. Who might be appointed for specific responsibilities

. When a particular activity could start.

Each decision area is characterized by a level of urgency and a level of impor-tance, as well as by a sector of responsibility that indicates who is responsible formaking the decision.

SCA has been applied in numerous situations: the development of newindustrial products, the application of new business strategies, the definition ofenvironmental policies, as well as the design of specific projects. Moullin(1991), for example, describes an SCA application created to help a group ofdecision makers design a new maternity hospital in Sheffield; SCA has alsobeen applied to local transformation projects such as airport planning (Friend,1993), evaluation of a local transport plan (Swanson, 1994), and a ring-road devel-opment (Rolando, 2014). There are models for how SCA can be applied in struc-turing the decision problems inherent in the early design stages of energy-efficient buildings.

The ambitious goal of achieving energy-efficient buildings needs to be struc-tured by representatives of local administrations, supported by a technical teamwith the expertise required to examine in depth and take into consideration allaspects relating to the decisions that are to be made in early design stages. Forthis reason, SCA methodology is proposed as a tool for supporting a group ofdecision makers (in our case a team of technical experts) in shaping decisionsand uncertainties, to harmonize tools/approaches from different researchareas, and to supply a methodological reply to multidisciplinary practical pro-blems.

The present paper proposes a round table as a virtual or actual place wherepoliticians, urban planners, and experts in different disciplines can interact, sup-ported by SCA methodology and a related software package STRAD (STRategicADviser), and decide on the best solutions to achieve energy-efficient buildings.

Figure 3 summarizes the workflow for a potential SCA application, highlight-ing how the proposed logical framework might be adapted to our purpose.

The general objective of this paper has been formulated as the decision-making problem, “How to achieve energy-efficient buildings?” Using the tools andapproaches of the four disciplines, this problem can be divided into six sub-pro-blems:

(1) Which technological and climate aspects to use in order to achieve energy-efficientbuildings?

(2) Which materials to use in order to achieve energy-efficient buildings?(3) How to optimize the maintenance phase through facility management strategies?(4) How to consider building users’ willingness to pay and requirements?(5) How to monitor the dynamics of the real-estate market through prices/values analy-

sis?(6) How can policies support builders’/developers’ investment strategies?

It is stressed that all of the information and issues deriving from the selectedresearch areas can be introduced into and structured within SCA.

For each specific decision sub-problem related to the aspects ascribable todifferent disciplines, a series of decision areas and uncertainty areas—and their

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related options—are to be structured, in order to apply SCA methodology throughits four operational modes and the software STRAD, examining rigorously all theaspects related to the project and to sharing them with stakeholders.

The expected outputs of the SCA application are twofold: first, the clearidentification of stakeholders and decision makers, enabling them to interactand reach shared decisions (for example a series of possible strategic actions),and second, technical solutions.

The logical framework proposed makes it clear that the main decisionproblem can be solved by taking into consideration several aspects ascribable todifferent disciplines, the potential contributions of a SCA application are high-lighted in the next paragraph.

The fifth section sets out in summary form possible preparatory phases for apotential application of the SCA to a real case study, by way of example, in anattempt to give a possible initial shape to sub-problem (5), “How to monitor thedynamics of the real-estate market through prices/values analysis?,” to highlight whatkind of information the discipline of “Project Evaluation and Real EstateMarkets” can provide and how this information can be introduced into SCA.

A Multidisciplinary Contribution to SCA Applications

This section describes the contributions of four disciplines to SCA, with exclusivereference to what information needs are structured within an SCA framework.Brief reference is made to what technical problems the disciplines need to over-come for the necessary output.

The contribution of Environmental Technology focuses on the climate-responsive approach. Materials Science and Technology contributes in the follow-

Figure 3: The workflow for a potential SCA applicationSource: Authors

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ing specific areas: Life Cycle Assessment (LCA), Volatile Organic Compounds(VOCs), emissions, and Indoor Air Quality (IAQ), as well as Life Cycle CostAnalysis (LCCA). The contribution of Architectural Design is concerned withtwo topics: the Integrated Project Delivery Approach and the Pre-OccupancyEvaluation Approach. Real Estate Market Evaluation contributes to three sub-topics: real estate market dynamics and values analysis; Project Management,Facility Management, and maintenance; and decision problems structuring. TheStrategic Choice Approach is proposed as a cohesive tool which is capable ofstructuring decisions and uncertainties deriving from each of these disciplines(as described in the previous section).

Environmental Technology

The discipline of Environmental Technology can contribute to a project on energy-efficient buildings by bringing in discussions of state-of-the-art technologies earlyin the design stage. The contribution is characterized by a complex process invol-ving research activities and professional application experiences encompassingenergy-related building analysts and programmers. Various types of softwarehave been developed at various levels of accuracy and detail, ranging fromthermal simulation models—e.g., Energy Plus (Strand et al., 2000), Transys(Klein et al., 1988), EspP (Clarke, 1985)—to calculation tools focusing on specificenvironmental control factors such as lighting—e.g., Radiance (Ward, 2002);solar analysis—e.g., Ecotech (Green, 1985); airflow modeling—e.g., Airnet(Walton, 1988), Aiolos (Daskalaki and Santamouris, 1995), Breeze (BRE, 1992),Comis (Allard et al., 1990), and passive-ventilative cooling—e.g., Winchill(Grosso, 2011).

An effort to make some of these tools user-friendly and designer-prone hasbeen made, but much work needs to be done in order to integrate them withina comprehensive framework designed to facilitate environmentally-and energy-conscious decision-making from the early design stages.

The integrated approach presented in this paper aims to bring a new perspec-tive to this field by combining the various climate-technology-related aspectswithin a common methodological framework, based on the SCA approach.Indeed, a climate-responsive approach to building and site design at an earlystage is essential for optimizing the selection process of energy efficiencyoptions in the subsequent decision-making process as well as design stages(client brief, planning, standards application, schematic design, design develop-ment, and technological and system design) (Brown and DeKay, 2001).

To develop SCA-related environmental and technological indicators, bothmarket-available tools and novel techniques can be used. In particular, climate-responsive early design indicators (Olgyay, 1969; Lechner, 2008) can be linked tothe following aspects:

. site-climate characterization (type and sources of climate variables affecting siteand building design) (Koppen and Geiger, 1961)

. site-terrain characterization (terrain morphology and vegetation)

. building layout, orientation, and shape vs. solar access/protection (Knowles,1981)

. building layout, orientation, and shape vs. wind access/protection (Boutet,2001)

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. climate-responsive building envelope systems, based on the results of the IEA(International Energy Agency) Annex 44 on Integrating Environmentally Respon-sive Elements in Buildings, with particular attention to passive cooling techniques(Grosso, 2011) and natural ventilation control strategies (Allard, 1998)

. interaction and integration of climate-responsive design parameters with aBuilding Information Modeling process.

Site-climate characterization depends strongly for reference on local climatedatasets, which have large variance, depending upon the source (data fromnearby meteorological stations, statistical data from regional agencies, nationalstandards for reference locations) and the reference period for time-averageddata processing (hourly, daily, monthly, yearly).

Site- and envelope-technology-related design options at a preliminarystage—such as the ones dealt with by the SCA approach—do not require detailedand refined sets of local reference climate data, but rather concise parametersrepresenting typical, recurrent conditions which may affect energy demand forthermal comfort within given range limits. Examples of such parameters are(with values averaged over a period equal to or longer than ten years): hour ofmaximum solar irradiance at the time of the winter solstice; hour of maximumsolar irradiance at the time of the summer solstice; maximum and minimumyearly ambient temperature, corresponding to, respectively, minimum andmaximum yearly relative air humidity; prevailing wind direction during winterand relevant average air velocity; and prevailing wind direction during summerand relevant average air velocity.

Hence, the set of indicators to be defined within the SCA framework servesthe purpose of correlating the site-climate parameters mentioned above withboth the morphological and technological characteristics of the urban contextand its built components, which form the subject of the decision-makingprocess concerning its transformation and development.

Examples of morphological characteristics include: building shape (aspectratios for a single building); building location (the building’s place on the plangrid); building orientation (orientation of a single building with reference to thecompass, and relevant exposure of its facades); and interrelations betweenlocations of buildings (distance between buildings, height-to-distance ratio ofthe various buildings).

Examples of technological characteristics include: function (heating, cooling,ventilation), type (sunspace, storage-convective wall derived from Trombe-Michel’s, solar chimney, evaporative downdraft, radiative night sky exchange,ground heat exchange), and location (facade, roof, floor, basement, underground)of passive systems.

The indicators to be defined should make it possible to optimize options relat-ing to the above characteristics for each building and the entire complex in orderto check if, and where, a proposed geometrical feature and technological systemcan be applied, based on energy-efficiency criteria.

Another aspect to be dealt with is the static versus the dynamic approach: staticcalculation methods allow a preliminary, simplified estimate of the energy-relatedeffects of a building’s architectural and technological features but are not able toaccurately evaluate the energy-saving and thermal comfort contributions ofclimate-dependent passive systems; dynamic simulation tools make it possible tocalculate such effects, but cannot usually be applied to early design stages.

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The SCA methodological framework might include both static and dynamicapproaches in relation to the requirements of each specific step in the decision-making process.

Materials Science and Technology

Materials Science and Technology can contribute to the SCA decision-makingprocess by orienting choice of materials on the basis of their environmentalimpact and durability (through Life-Cycle Assessment, LCA) and their costs(through Life-Cycle Cost Analysis, LCCA). Buildings are responsible for emis-sions before use (embodied emissions), during use (from the use of building-incorporated services and appliances, maintenance, and refurbishment) andafter use. Embodied emissions are generated in all of the processes prior to oper-ation of the building. They include emissions from the extraction and processingof raw materials, manufacturing of materials and equipment for use in the build-ing, transport of materials and equipment to the site, and the construction andinstallation of the building structure, systems, and equipment. Different defi-nitions of a zero-emission building may include all or some of these sources ofembodied emissions (Riedy et al., 2011). However, including embodied emissionsposes several problems, mainly because:

. calculating embodied emissions is relatively complex and data can be difficultto obtain for the full range of materials in use

. values of embodied emissions from different databases can lead to significantvariation in results (Dixit et al., 2012)

. obtaining data on embodied emissions for existing buildings is challengingbecause the materials used may not be fully known. As a result, the embodiedemissions associated with those materials are very difficult to calculate retro-spectively.

Moreover, embodied emissions are only a limited part of a building’s overallimpact on the environment. The estimation of the resources used and the environ-mental consequences of releases throughout any building component’s life cyclefrom raw material acquisition through production, use, end-of-life treatment,recycling, and final disposal can be performed by means of Life-Cycle Assess-ment. LCA is a holistic tool commonly used in automotive design, equipmentmanufacturing, and consumer product design. Compared to products producedin these industries, buildings are unique; their lifetime is decades long, theyhave multiple functions, and they are locally assembled. Adoption of LCAmethods in architecture, engineering, and construction (AEC) projects has beenlimited due to these features (Basbagill et al,. 2013). In addition, LCA methodstypically require significant time and effort for implementation.

In the impact assessment phase of LCA, the inputs and outputs of the systembeing analyzed are translated into quantitative and/or qualitative descriptions ofenvironmental impacts by using models (Warren and Weitz, 1994). An impactassessment provides decision makers with additional information to makechoices. This is of primary importance, as many building materials, furnishings,and household products emit volatile organic compounds (VOCs) during use.Moreover, the problem may become dominant when components of differentmaterials react with each other (Uhde and Salthammer, 2007). Indoor air pollution

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is defined as chemical, physical, or biological contaminants in the breathable airinside a habitable structure or conveyance, including workplaces, schools,offices, homes, and vehicles (Crump et al., 2009). It includes the following: com-bustion by-products such as carbon monoxide (CO) and nitrogen dioxide(NO2), ozone; allergens, including mold spores; building materials and furnish-ings; cleaning products, personal care products, air fresheners, and pesticidesused indoors; tobacco smoke, hobbies, cooking, and other occupant activities;dry-cleaned clothes; bioeffluents; and soil gas intrusion, including radon.Exposure to pollutants may cause a variety of effects, ranging in severity from per-ception of unwanted odors to cancer (Crump et al., 2009). Moreover, according torecent studies, 300 million people in the world are affected by asthma. Asthma iscurrently the most common chronic disease among children and kills a total ofabout 255,000 people of all ages worldwide every year (Crosta, 2013). In addition,almost all asthma sufferers have allergies associated with airway inflammation.Common sources of indoor allergens include animal proteins (mostly cat anddog allergens), dust mites, cockroaches, fungi, tobacco smoke, and in generalenvironmental pollution. It is also very likely that the trend towards the develop-ment of highly energy-efficient buildings exploiting confined atmospheres willincrease risks of asthma. Therefore, various kinds of sensors to monitor CO2, airquality, odors, and humidity are in increasing demand for various purposes inhouses (See Figure 4) (Yamazoe, 2005; Esteban-Cubillo et al., 2007; Debliquyet al., 2011; Tulliani et al., 2011).

Including cost information in an LCA enhances its effectiveness as an overalldecision support tool. LCCA is a versatile technique which can be applied for arange of purposes and at different stages in the project or asset life cycle. ISO15686-5:2008 (Buildings and constructed assets—Service-life planning—Part 5:Life-cycle costing) gives guidelines for performing life-cycle cost analyses ofbuildings and constructed assets and their parts. Furthermore, the recent Com-mission Delegated Regulation, EU N.244/2012, describes a comparative method-ology framework for calculating cost-optimal levels of minimum energyperformance requirements for buildings and building elements.

Figure 4: Various kinds of gas sensors in a houseSource: Yamazoe, 2005

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The purposes for which LCCA may be used can be divided into two broadcategories:

. as an absolute analysis, when used to support the processes of planning, bud-geting, and contracting for investment in constructed assets

. as a relative analysis, when used to undertake robust financial option apprai-sals, for example in relation to potential acquisition of assets, designapproaches, or alternative technologies.

More specifically, LCCA can be used to support decision-making in a numberof ways: in assessing the total cost commitment of investing in and owning anasset, either over its complete life cycle ("cradle to grave") or over a selected inter-mediate period:

. by improving understanding of the total cost of an asset, particularly on the partof construction clients, and improving the transparency of the composition ofthese costs

. by facilitating effective choices between different means of achieving desiredobjectives, for example reducing energy use or lengthening a maintenance cycle

. by helping to achieve an appropriate balance between initial capital costs andfuture revenue costs

. in helping to identify opportunities for greater cost-effectiveness, for exampleselection of components with a longer service life or reduced maintenancerequirements

. as a tool for the financial assessment of alternative options identified during asustainability analysis, for example components with lower environmentalimpact or HVAC systems with greater energy efficiency

. overall, by instilling greater confidence in decision-making in a project(Langdon, 2007).

So far, the LCC approach has not been extensively applied to the buildingconstruction sector. Where it has been, externalities and environmental aspectshave usually not been considered. Therefore, the methodology proposed in thispaper also aims to fill this gap by implementing the connection between costsand environmental aspects for sustainable solutions (relating to technology andmaterials) in designing energy-efficient, zero-emission buildings (Langdon, 2007).

Architectural Design

With regard to the aim of this paper, the contribution offered by the discipline ofArchitectural Design is represented by the information obtainable though the Pre-Occupancy Evaluation (PROE) method.

To our knowledge, Post-Occupancy Evaluation (POE) methods have beenapplied so far to comfort and perception evaluation of existing buildings, as thename implies. The use of a similar approach to scenario-based analyses is comple-tely new. A significant breakthrough in knowledge of the interrelationshipsbetween energy efficiency/environmental sustainability of buildings and occu-pant behavior is expected with regards to the design process. Starting from theanalysis of the diffusion of durable goods and their effect on household savingratios in Europe (Jalava and Kanovious, 2007; Hamilton and Morris, 2002), thismethod has been tested on Italian cases analyzing the national scene.

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A new development in the architectural design field is its focus on the inter-relation between the viral diffusion of smartphones and the reduction of energyconsumption, thanks to remote control methods. For this particular researchissue, the state of the art is relatively poor in studies because of the novelty ofthis approach. Direct data related to the diffusion of ICT tools and media, includ-ing Internet fruition tools (TVs, PCs, tablets, and smart phones), are fully availableat the international and national level: see the bibliography for reference (Eurostat,2003) both in printed and digital format.

Within an Integrated Project Delivery Approach, digital-driven design pro-cesses and digital-controlled tools can help to design buildings wherein occupantscan have a healthier environment by bringing sustainable innovations into houses.Within the general framework of the present proposal, the discipline of Architec-tural Design will contribute to informing the design process using the results of aPre-Occupancy Evaluation (PROE) method. PROE uses the same method as POE(Post-Occupancy Evaluation), but in terms of scenarios as opposed to an assess-ment of satisfaction by occupants, which is possible only for existing, already-occupied buildings. The main concept is to assess how zero-emissions-energybuildings can perform in relation to users’ behavior, i.e. in terms of multisensorialperception, adaptability, and socio-culturally-determined reaction.

POE usually aims to assess objective indoor environmental data—such as airtemperature, noise levels, waste levels, and water consumption—as well as sub-jective comfort aspects such as thermal, visual, acoustic, and other sensorial per-ceptions on the part of occupants.

PROE uses an inductive method focusing on the foreseeable effects of techno-logical innovations designed for zero-emissions buildings on potential occupants,who are typologically and socially defined at the design stage. In particular, thediscipline will contribute with regard to the following aspects:

. lifestyle models and building life cycles. Demographic data such as the numberand variation of inhabitants of a building unit during its life cycle will be eval-uated.

. the “contemporaneousness” factor in buildings. The coexistence of differenttypes of occupants in different areas of a building unit, at different times ofday and night, will be assessed, highlighting moments of complete absenceand moments of full occupancy in order to determine which are the most fre-quently “populated” areas/rooms of the building.

. aggregation and flow patterns of occupants. Occupants’ movements and aggre-gation inside a housing unit will be analyzed in relation to their physiologicalneeds and multi-sensorial perceptions.

. environment-related occupant behavior. Aspects such as the use of householdappliances and networks (electricity, water, gas, etc.), the handling of waste,the management of HVAC systems, and window openings will be evaluated.

. occupants’ participation in design decisions. A method for encouraging poten-tial occupants to participate in the decision-making process regarding the trans-formation of a neighborhood or the construction of a new building will beimplemented using socially accepted patterns.

. the social/urban needs—including energy-related consumption—of the neigh-borhoods’ inhabitants.

PROE will make use of dialogue tools such as questionnaires, interviews, andfocus groups with pre-selected categories of potential occupants. It will also

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include an economics-based approach in order to assess the interrelationshipbetween the quality of a building perceived by potential occupants and the costof technological innovations. Like the other methodological contributions, thePROE method will be tested and validated through a case study by defining a fra-mework of requirements for the prospective transformation of the area involvedin the case study. Variation parameters of building types and layout will be devel-oped as a function of users’ behavior.

The purpose of the expected participatory activities is to raise awareness ofthe fact that new research directions in residential design are fruitless withoutthe cooperation of occupants who are responsible for daily living habits in thebuildings concerned. Hence, the activities to be carried out can lead to strategiesfor controlling power consumption being consolidated as a result of spontaneouscompetition developing between neighborhoods. Comparing different data fortwo or more residential buildings located in the same representative neighbor-hood can lead to competitive mechanisms that invite potential occupants toreduce their consumption of energy and environmental resources and adoptmore eco-friendly behavior geared towards a more sustainable culture ofhousing and dwelling, combining tradition with innovation. The results mustbe collected in a report on the Design Quality Scenario and discussed—includingduring work-in-progress phases—with potential occupants, making use of focusgroup activities and participatory workshops. The final results of these phasesmay also constitute the “information base” for applying SCA.

Real Estate Market Evaluation

The contribution of the economic-estimative discipline to the application of SCAis twofold. It provides (1) information derived from models of real estate marketdynamics and values analysis and (2) information derived from approachesbased on Project Management, Facility Management, and maintenance. Further-more, it is important to mention that SCA itself was developed in thisresearch area. These two sets of tools can provide information for SCA, asnoted below.

Real Estate Dynamics. The first group of models focuses on real estate marketdynamics, considering functional and geographical market segments. It contrib-utes to orienting consumers’ behavior and government land-planning policies.It can also guide the investment choices of promoters (Jaffe and Sirmans, 1995;Brown and Matysiak, 2000; Hoesli and Morri, 2010; Qian et al., 2012), evenwhere situations of risk and uncertainty exist; price dynamics act as a basis forpredicting and modeling investment scenarios through Discounted Cash-FlowAnalysis combined with probabilistic approaches (Curto and Fregonara, 1999),or quantitative financial methods such as the Real Option Theory (Smith andTrigeorgis, 2004).

Many of these approaches are related to statistical and mass appraisal tech-niques. Other approaches have been tested in order to identify and quantify thedeterminants of the asset prices: literature relating to hedonic price models iswell established, starting from the “milestones” set out by Rosen in the 1970s(Griliches, 1971; Rosen, 1974; Palmquist, 1989).

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Recent literature on the subject focuses on the spatial components that deter-mine price formation, assuming the presence of geographical submarkets (Bour-assa et al., 2010; Fregonara et al., 2012). Thanks to the georeferencing of data, itis possible to make use of spatial statistical methods involving conventional para-metric techniques or more recent non-parametric methods. These include localregression models such as Geographical Weighted Regression (GWR) (Fothering-ham et al., 2002), which are capable of effectively managing the geographical com-ponent of the property market, which is strongly characterized by effects that arecircumscribed by the area under study. Spatial statistical methods are enhanced byusing GIS (Anselin, 1998; Burrough, 1986; Burrough and McDonnell, 1998), or,preferably, Spatial Data Infrastructures (Longley et al., 2001; Salvemini, 2010; Mur-gante et al. 2011; Laurini, 2012).

All these approaches can provide information for SCA, assuming that geore-ferenced data are collected and stored by means of a “market monitoring” struc-ture. (The place-based focus in this section will involve references to Turin, Italy.)An example is provided by the Turin Real Estate Market Observatory (TREMO),which is based on a Geographic Information System devised in order to be devel-oped within a Land Information System (http://www.oict.polito.it/en/).TREMO, based on constantly-updated information, has been active since 2000;its purpose is to monitor asking prices for residential property and constructionactivities in the city, following the geographical segmentation of Italian cities forcadastral purposes, termed "Microzones." The observatory is active thanks tothe collaboration—which has been formalized by specific research agreementsand contracts—of the Municipality of Turin, the Chamber of Commerce ofTurin, and the Polytechnic of Turin.

Meaningful information for SCA can be obtained by considering energy con-sumption among the other characteristics of new/existing buildings. Specificallyfor this purpose, the data warehouse needs to be integrated with a new “layer” ofinformation on buildings’ energy class and levels of consumption for different ter-ritorial segments in order to analyze the influence of energy performance on pricedetermination and on technical design aspects of the project (Fuerst and McAllis-ter, 2011a; 2011b; Brounen and Kok, 2011; Eichholtz et al., 2011; Florio and Poggi,2010; Fiorio and Florio, 2011; Kok and Jennen, 2012). Even more interesting – inItaly – is the case of intervention on historical buildings or redevelopment sites(Aste et al., 2012; Morano and Tajani, 2013).

An analysis of real-estate market dynamics and demand-side characteristicsis essential for facilitating decision-making during the energy-efficient buildingdesign process. The supply of energy-efficient products can influence the realestate market demand. Hence, the real estate market can be considered a“control parameter” for evaluation design options.

Nonetheless, in Italy, researchers must confront the issue of the lack of trans-parency in the real estate market, which limits analysis and makes it difficult touse statistically significant samples of actual sale prices. Furthermore, the highvariability in real estate market prices amplifies the action of the stochastic com-ponents that are present in every market. Besides, the current economic and finan-cial crisis has affected real-estate market dynamics: lack of liquidity clearlyinfluences selling time and the prices of assets.

In order to enhance the information provided for the purpose of SCA, startingfrom the ongoing experience of TREMO, the following preliminary actions arenecessary:

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. territorial-scale classification of the building stock in terms of energy-consump-tion profiles

. analysis of price/value parameters in relation to the performance characteristicsof buildings

. the setting up of a Land Information System (LIS) or, better still, a Spatial DataInfrastructure (SDI), conceived as an extended Territorial Information System(TIS) based on GIS and alphanumerical as well as cartographical datasets.This LIS/SDI can be developed through interoperability between the variousactors that can contribute to the database in accordance with the Inspire Direc-tive (http://inspire.jrc.ec.europa.eu/). To this end, a sample of geo-statisticaldata needs to be collected, including asking prices for properties, sale prices,energy classification, and energy consumption, as well as other performancecharacteristics. The dimensional data contained in the sample needs to behandled through geo-statistical methods as well as multivariate statisticalmodels with descriptive asset prices for forecasting purposes. The results ofthe statistical assessments can be displayed through thematic maps andspatial interpolation (e.g., Kriging method).

Figure 5 illustrates how this SDI would be potentially structured. The currentdata warehouse and institutions participating in the TREMO are highlighted. Anumber of potential sources (the actual availability of which is subject to verifica-tion) are shown in grey.

Creating of such a data warehouse would increase the amount of informationavailable for the SCA approach regarding:

. the energy status of buildings broken down by territorial zone (Microzones) forthe supply segment, through databases on energy certificates, added to the data-base on listing prices (new/existing residential buildings)

. the influence of energy class on listing prices through multivariate/spatial stat-istical models (for georeferenced/non-georeferenced databases)

Figure 5: TREMO: Potential LIS/SDI architecture, highlighting current TIS architectureSource: Authors

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. the process of establishing closing prices, thanks to the availability of actualsales data related to the energy performances of buildings expressed throughtheir characteristics

. the frequency distribution of the energy class of units in relation to year of con-struction and Microzone, for renovated/non-renovated buildings, starting fromdata on year of construction, building practices, and energy certifications

. the relationship between maintenance and certified energy class (interventioncosts), based on energy consumption databases and energy certificates

. market dynamism (in terms of the number of sales) in relation to energy class,using the energy certification database.

Project Management and Facility Management. The second group of approachesfocuses on Project Management and Facility Management, embracing several dis-ciplinary approaches (Kerzner, 2005). It is assumed that in the Italian context, themethodological basis of Project Management is out of line with other contexts,especially those of English-speaking nations; hence there is still room todevelop it further in both the professional and academic spheres (Fregonara,2011). The literature on Facility Management is broad and focuses on topicsrelated to contract services (Martin, 1997), measuring key performance indicators(Tsang et al., 1999), and different maintenance managements (Atkin and Brooks,2002), even taking into account sustainability-oriented approaches (Pollo, 2005).

The contribution to SCA starts from the assumptions derived from Brandt(1994) and developed by Al-Turki (2011) and Lind and Muyingo (2012), consider-ing maintenance activities as “strategies for efficiency.” In fact, a strategicapproach to Facilities Management and to specific maintenance activities are con-sidered “strategies for efficiency” in order to control and monitor maintenancecosts, which may be higher than construction costs. Design solutions adoptedduring the early design stage strongly influence the building’s energy consump-tion as well as related maintenance costs during its whole life cycle. Environ-mental impacts must also be considered: most components are replaced duringthe building’s life and related energy input and emissions output have to beassessed.

Regarding a building’s characteristics and their economic implicationsduring its whole life cycle, there are several aspects to consider in order todraw up a preventive maintenance program. At the client brief level, the spacesneeded are to be outlined, in order to optimize building space utilization andguarantee its usability and functionality. Then, the alternative bids must be eval-uated and finalized to designate the Facilities Management companies—or asingle company in case of a Global Service contract—that will be responsible formaintenance services. In parallel, the quality standards required must be quanti-fied, so that providers of services can be constantly monitored and evaluated onthe basis of clear performance indicators. Furthermore, other key factors need tobe analyzed. First of all, it is necessary to estimate the building’s energy andwater consumption and related costs and environmental impacts by establishingpossible future facility management scenarios. Second, similar buildings andspaces can be selected as comparative cases, in order to analyze the maintenanceperformance indicators defined in the client brief. Finally the design solutions andthe maintenance strategies adopted can be compared.

For these purposes, and for the purposes of a potential SCA application, thedevelopment of an assessment method that takes all these aspects into account is

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essential, through the use of summary indicators, such as the replacement factorfor building elements and maintenance work implying specific and meaningfulenvironmental impacts.

Simulation: Preparatory Phases for a Possible SCA Application

The SCA application described below is a simulation based on the first step of theapproach (the shaping mode). Its aim is to clarify how each discipline can contrib-ute during the preparatory phase of developing a platform that may be of use inthe designing, comparing and choosing modes.

In order to illustrate how the proposed multidisciplinary approach could beset up, SCA methodology has been applied to only one of the six sub-problemsexplained in the third section. Therefore, taking the initial decision problem,“How to achieve energy-efficient buildings?” broken down into the six differentsub-problems, a possible shape for sub-problem 5, “How to monitor real-estatemarket dynamics through prices/values analysis?” is presented here.

For this purpose reference is made to tools and approaches deriving from the“Project Evaluation and Real Estate Market” discipline—in particular real-estatemarket dynamics and values analysis—that can highlight decision problems orsuggest practical or methodological solutions.

Figure 6 highlights some information/issues and tools deriving from the“Project Evaluation and Real Estate Market” discipline, in order to illustratehow they might be turned into decision areas and uncertainty areas and introducedinto SCA, thereby helping to structure the decision problem.

A series of decision areas and uncertainty areas is proposed, so that a prelimi-nary structure for sub-problem 5, “How to monitor real-estate market dynamicsthrough prices/values analysis?” could be imagined.

Figure 6: Preparatory phases for a potential application of SCA to sub-problem 5Source: Authors

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It is important to underline that the structure illustrated represents a verygeneral starting point for an SCA application to an actual case study; only by con-sidering a specific project and its territorial context can the proposed decision areasand uncertainty areas be adapted or partially modified. Equally, the alternativeoptions related to each decision area and the exploratory options related to each uncer-tainty area can be defined only by applying the SCA methodology to a concreteproject.

Furthermore, it is evident that for a complete decision process SCA must beapplied to all six sub-problems, following not only the shaping phase, but allthe steps provided by the four operational modes.

Finally, decision problem structures must be drawn up and shared by theworking group of decision-makers, led by a coordinator who is responsible forand capable of managing the STRAD software package and assisting the groupthroughout the whole process. This is fundamental not only during the shapingmode of SCA but also during the other phases, in order to be able to highlightinteraction between the options and the principle sources of uncertainty, toorganize the timescale for implementing the decisions—on the basis of the criteriaof urgency and importance—to analyze the effective strategies for managinguncertainties, and to compare the different design solutions.

A bottom-up process involving representatives of stakeholders involved in ahypothetical case study area has to be set up in order to check the effectiveness ofthe present preliminary decision-making framework derived from the applicationof the shaping mode of the SCA methodology.

Conclusions

Planning, programming, and structuring decision problems relating to energy-efficient buildings often have to reconcile various aspects, taking into accountobjectives, laws, regulations, and all of the uncertainties relating to the context.The problem is a particularly tricky one in the early design stage, during whichthe “negotiation” phase among promoters, designers, planners, and public auth-orities takes place.

This paper proposes a multidisciplinary approach, as is appropriate in viewof the complexity of the subject and the multidimensionality of the decision-making context. At the same time, it deals with the difficulty of transferringand coordinating information across disciplines. Finally, the issue of harmonizinginput information deriving from different disciplines is discussed, with the aim ofarriving at shared solutions, compromises, preferences rankings, or a clear struc-ture of a decision process.

Starting from the possible contributions from the four disciplines—papers/tools/software available on the market or in the literature—aspects relating tothe sustainability of buildings are considered as far as possible for the purposeof selecting those elements that can steer decision-making at various levels: gov-ernmental, administrative, socioeconomic, financial, technical, etc. These levelsare represented at a round-table discussion during which political decisionmakers and technicians (team of experts) interact and share decisions.

A preliminary, cohesive decision-making platform is presented to supportworking groups of decision-makers in linking the information deriving from thetools/approaches proposed by four disciplines: to illustrate the first phase of the

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methodology, a simulation is proposed that takes into account the real estatemarket and the project economic valuation perspective.

This approach has also been conceived to be applied to transformation plansfor the city of Turin, a candidate city in the European “Smart Cities” program, inthe event of funding being received. This approach is built up with reference toinhabitants/occupants’ needs, climate context, building type, innovative sustain-able technologies, maintenance programs, life cycle costs, and real estate marketvalues.

The expected results of the potential application of SCA to a concrete casestudy include:

. a higher probability of successful, sustainable transformation of the case studyarea

. wider dissemination of the concept of energy-efficient buildings and neighbor-hoods among inhabitants of the case study area as well as of the broader metro-politan area

. increased awareness among potential stakeholders of the relationships betweenenvironmental and energy benefits and development/maintenance costs

. a step forward in knowledge of the interactions between multidisciplinary inte-grated scientific methodology in planning/design in the building sector andbottom-up decision-making.

Notes on Contributors

Elena Fregonara, PhD, is associate professor of Project Evaluation and Real Estate,Architecture and Design Department, Politecnico di Torino, Turin, Italy.

Rocco Curto is director of the Architecture and Design Department and professorof Project Evaluation and Real Estate, Politecnico di Torino, Turin, Italy.

Mario Grosso, Arch., is associate professor of Architectural Technology, Architec-ture and Design Department, Politecnico di Torino, Turin, Italy.

Paolo Mellano is a professor of Architectural and Urban Design, Architecture andDesign Department, Politecnico di Torino, Turin, Italy.

Diana Rolando, PhD, is a grant researcher, Architecture and Design Department,Politecnico di Torino, Turin, Italy.

Jean-Marc Tulliani, PhD, is associate professor of Materials Science and Technol-ogy, Department of Applied Science and Technology, Politecnico di Torino,Turin, Italy.

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