ICF was asked to conduct an analysis comparing life-cycle cost (LCC) – the predominant methodology used by policymakers to evaluate the cost-effectiveness of residential and commercial building energy codes and other public policies – with two other cost-effectiveness methods: simple payback and mortgage cash-flow.
This report provides a rigorous, consistent, quantified comparison of these three methodologies. In addition to detailing quantified results, it discusses the pros and cons of each method. The intent is to provide public policy analysts and policymakers with additional clarity and insight.
