Green construction practices and economic performance: The mediating role of social performance and environmental performance

Currently, there is a surge in the adoption of green construction practices (GCP) to address and attempt to alleviate the adverse effects of construction activities on the natural environment. The current research surrounding sustainability in the industry has witnessed a notable surge in efforts, primarily driven by a growing consciousness of environmental concerns. In this context, it is worth noting that the focus of assessment schemes in developed countries has predominantly gravitated toward economic and environmental factors, with relatively less emphasis placed on social performance (SP). Many researchers have underscored this disparity, highlighting the need for a more comprehensive approach encompassing all three sustainability dimensions. Hence, the present research examines the effects of green construction practices on economic performance (ECP) while considering the mediating role of environmental performance (EP) and SP. The results showed no direct impact of GCP on ECP. However, the mediating role of SP and EP in the association between GCP and ECP was found to be statistically significant. The present study provides several implications. This study presents empirical evidence that implementing GCP yields several benefits for contractors, including cost reduction in waste management, legal expenses, and energy consumption. These cost savings effectively offset the initial investment required to implement GCP, enabling construction projects to attain ECP thresholds. This study provides a significant contribution to the expanding corpus of knowledge concerning green building site practices and construction management. It offers novel insights into the influence of a project's EP and SP on its economic feasibility. Furthermore, this research study has effectively showcased the positive impact of GCP on construction projects' environmental construction performance, particularly concerning environmental and social considerations. Integr Environ Assess Manag 2024;00:1-11. (c) 2024 SETAC We examined the effects of green construction practices on economic performance (ECP) while considering the mediating role of environmental performance (EP) and social performance (SP). The results showed no direct impact of green construction practices on ECP; however, a statistically significant mediating role of SP and EP was found in the relationship between green construction practices and ECP. We found that green construction practices improve the ECP of construction projects in the presence of environmental and social aspects, thus helping the contractor reduce costs associated with waste management, legal expenses, energy management, and material management.