A Carbon Trading Perspective on the Economic Evaluation of Residential Building Emission Reduction

In the context of the ongoing green transformation in the construction industry, this research presents a comprehensive economic assessment of emission reduction in residential buildings from the perspective of carbon trading. The assessment accounts for energy saving revenue, emission trading revenue, economic cost, and environmental cost. By adopting two dynamic economic indicators—Net Present Value (NPV) and Dynamic Payback Period (DPP)—a dedicated economic evaluation model for residential building emission reduction is developed. A case study of a residential building shows that roof retrofits deliver the highest NPV, owing to their lower costs and significant emission reduction benefits. Although external walls achieve the highest carbon reduction per unit area, their high costs mean they are ranked second in terms of NPV. Moreover, the introduction of a carbon trading mechanism can generate additional value of approximately 87,377.08 CNY and shorten the payback period by 0.83 years, highlighting its crucial role in advancing the low-carbon transition of the construction industry. However, current emission reduction efforts still face challenges such as a relatively low NPV and an extended payback period. To enhance the investment value and market competitiveness of such projects, it is essential to reduce emission reduction costs and increase emission reduction benefits.