Improving productivity is one of the central concerns of businesses. In buildings, energy-efficient technologies and design strategies can improve labor productivity (output of goods and services per hour worked) far in excess of the improvement in energy productivity (output per unit energy consumed). Similarly, in manufacturing, energy efficiency can improve total factor productivity (product output as a function of all labor, capital, energy, and materials consumed in its production) far in excess of the improvement in energy productivity.

Office Productivity and Energy Efficiency

Offices and buildings are not typically designed to minimize either energy use or labor costs (by maximizing worker productivity). Almost everyone involved in building construction—such as the developer, architects, and engineers—is rewarded by the ability to minimize the initial cost of a building, as opposed to its life-cycle cost...