The current research shows that green building received inadequate support from industry parties due to its high up-front cost. There are no existing guidelines focussing on how to minimize the issues of high up-front cost and for that reason, not all clients willing to get involved in green building construction. Hence, to increase their interest in investing in the green building, this research aims at formulating an economic model of green building construction using Structural Equation Modelling (SEM). The objectives of this research are to identify the green buildings elements, examine the most expensive elements, recommend the strategies in minimizing the cost of green building construction and to formulate and validate an economic model of green building construction. The model is one of the strategies to minimize the total cost, increase the client’s interest to invest in green building as well as facilitate construction stakeholders from inception to completion stage; in line with the Twelve Malaysia Plan “Economic Empowerment and Environmental Sustainability”.