Final answer:
Economies of scale result in lower cost per unit with increased output, which aids in achieving cost-effective LEED certification when applied on a large scale.
Step-by-step explanation:
Economies of scale play a pivotal role in cost-effective LEED (Leadership in Energy and Environmental Design) certification, especially on a volume scale. It refers to the phenomenon where the cost per unit decreases as the quantity of output increases. This principle is prominent in industries that mass-produce goods, utilizing the least costly production technology while determining the optimal scale of production.
Large-scale operations like warehouse stores, exemplified by Costco and Walmart, benefit from this, as a larger factory is capable of producing goods at a lower average cost compared to a smaller factory. Similarly, when applying economies of scale to LEED certification, a firm, or a set of projects, can achieve certification more economically, and efficiently distribute resources, levels of investment, and utilization of technology over a larger number of buildings. This approach not only yields financial benefits but also contributes to significant environmental rewards, such as reducing carbon emissions and dependence on non-renewable energy sources like kerosene.