Monetizing environmental impacts: A systematic review of environmental costs in building projects

Environmental cost assessment monetizes building-related environmental impacts, enabling their direct comparison with financial costs and supporting optimization and decision-making. Despite extensive case studies, definitions and assessment methods remain fragmented due to diverse monetization theories and indicators. Therefore, this study presents the first comprehensive review on building environmental costs to describe their theoretical foundations and practical achievements by integrating bibliometric and descriptive analysis, meta -analysis, and structured discussion. The results show an increasing publication trend, with case studies concentrated in residential, commercial, and institutional buildings in China and Europe. Meta-analysis shows that the average environmental cost of building projects is around 110.42 USD/m², with an annualized cost of 3.18 USD/m²/year. These costs are characterized by the highest damage costs, occasionally negative abatement costs, and generally higher values in developed countries than in developing ones. Structured discussion shows that environmental costs are mainly conceptualized through three monetization theories (damage, abatement, and policy costs), which translate multi-dimensional environmental impacts into a comparable monetary term to inform investment, design, and procurement decisions. A three-dimensional system boundary is proposed based on monetization theory, environmental indicators, and life cycle stage, alongside a consolidated five-step methodology including goal and boundary definition, inventory acquisition, environmental impact assessment, monetization assessment, and interpretation and optimization. The review also outlines key limitations and future research directions. This study advances a unified conceptual and methodological framework for environmental cost assessment in building projects, enhancing comparability, standardization, and practical applicability. © 2025 Elsevier B.V.