Developing a Conceptual Framework to Embed the Social Cost of Carbon in Cost Estimation for Commercial Buildings

Cost estimation for commercial buildings predominantly focuses on financial metrics, neglecting societal impacts of carbon emissions. The Social Cost of Carbon (SCC), monetising long-term damage of carbon dioxides, offers a mechanism to integrate environmental and social externalities. This study develops a conceptual framework for embedding SCC into building cost estimation. A critical review of 23 academic studies and 8 semi-structured interviews with sustainability consultants, cost managers, policymakers are conducted. Findings reveal 3 primary carbon cost drivers from literature and 4 key integration themes from industry, the need for granular carbon data, stakeholder interest alignment, supportive policy incentives, and tools compatible with existing cost software. The proposed framework integrates SCC throughout the building lifecycle, from feasibility and design to procurement and operation, expanding Whole Life Costing to incorporate societal costs. This enables cost professionals to account for long-term climate and social impacts alongside traditional expenditure. Future research should pilot the framework and develop digital tools (e.g., BIM-based platforms) For SCC-informed decision-making.