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Incentivising Innovation in the Swedish Construction Industry
KTH, School of Industrial Engineering and Management (ITM), Energy Technology, Applied Thermodynamics and Refrigeration.ORCID iD: 0000-0002-2160-6808
2020 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

Almost 40 percent of global final energy use and CO2 emissions are connected to buildings and building-related activities; it is therefore important to incentivise the design and construction of resource-efficient buildings. Unfortunately, energy demand and associated emissions in the sector continue to grow. Such incentives will help achieve energy and environmental targets, reduce costs, and make smart and sustainable buildings and cities possible at a larger scale. Because novel technologies carry risks alongside their advantages, developers, contractors and consultants must have incentives to reduce and share those risks in a rational way if we are to meet the crucial long-term societal goals of reduced use of resources and emissions.

 

I hypothesise that there are legal and institutional frameworks (rules, building codes, regulations, standard contracts, etc.) that result in weak or negative incentives for construction industry actors to invest in, propose, and install resource-efficient technologies. If the hypothesis holds true, then the goal is to identify ways to better incentivise construction industry actors to fully engage in the design and construction of smart and sustainable buildings.

 

To tackle this, four studies were carried out using a mixed-method approach. Paper 1 identifies 38 barriers to energy efficiency in Swedish multifamily buildings. The next study (Paper 2) develops a categorisation framework in order to understand where to engage to overcome or bypass barriers to energy efficiency. Paper 3 and 4 are devoted to analysing two sets of barriers and propose possible solutions to overcome or avoid them: (1) how the current legal framework guiding start and operation of housing co-operatives (mainly the Co-operative Act) influences incentives for engaging in resource-efficient construction, and (2) how the legal instrument for collaboration between developers and consultants incentivises resource-efficient construction. In this case, the contract under investigation is the General Conditions of Contract for Consulting Agreements for Architectural and Engineering Assignments (ABK 09)”. Changes to these two sets of legal and institutional frameworks could have a significant impact on how buildings are designed, produced and used. The changes proposed could incentivise construction industry actors to fully pursue the creation of smart, sustainable buildings that deliver services to users and reduce negative environmental impacts stemming from both the building construction and operation phases.

Abstract [sv]

Byggnader och byggande i den industrialiserade delen av världen står för nästan 40 procent av den globala energianvändningen, och därmed även en liknande procent av de globala koldioxidutsläppen. Tyvärr fortsätter energibehovet och kopplade utsläpp från sektorn att växa. Därför är det av största vikt att stimulera användningen av resurseffektiv teknik  i byggnader för att minska kostnaderna, för att nå energi- och klimatmål och för att möjliggöra smarta och hållbara byggnader och städer i större skala. Eftersom ny teknik medför risker samtidigt som fördelar måste byggherrar, entreprenörer och konsulter ha incitament för att minska och dela dessa risker på ett rationellt sätt, om vi ska uppfylla de avgörande långsiktiga målen i samhället för minskad användning av resurser och minskade utsläpp. Hypotesen i denna avhandling är att det finns lagliga och institutionella ramverk (lagar, regler, byggnormer, förordningar, standardkontrakt osv.) som resulterar i svaga eller negativa incitament för aktörer i byggindustrins att investera i, föreslå och installera resurseffektiv teknik. Om hypotesen stämmer är målet att identifiera sätt att stimulera aktörer i byggindustrins att fullt ut engagera sig i design och produktion av smarta och hållbara byggnader. För att studera dessa frågeställningar har fyra studier genomförts, och ett brett metodupplägg har använts (mixed method approach).  I artikel 1 identifieras 38 hinder för energieffektivisering i svenska flerbostadshus. Nästa studie (artikel 2) utvecklar ett kategoriseringsramerk för hinder relaterat till energieffektivitet. Artikel 3 och 4 ägnas åt två specifika hinder och föreslår möjliga lösningar för att övervinna eller runda dessa: (1) hur det nuvarande legala ramverket (främst bostadsrättsformen) som styr start och drift av bostadsrättsföreningar påverkar incitament för att uppföra resurseffektiva byggnader, och (2) hur det institutionella ramverket för samarbete mellan byggherre/entreprenör och konsulter stimulerar resurseffektiv konstruktion. I detta fall är det undersökta ramverket standardavtalet ”Allmänna bestämmelser för konsultuppdrag inom arkitekt- och ingenjörsverksamhet ABK 09”. Dessa två uppsättningar av legala och institutionella ramverk kan, om de ändras, ha en betydande inverkan på hur byggnader designas, produceras och används. De föreslagna förändringarna kan leda till möjligheter att stimulera aktörer i byggindustrin att fullt ut engagera sig i att skapandet av smarta och hållbara byggnader; skapandet av byggnader som levererar tjänster till användare och samtidigt minskar negativ miljöpåverkan från både produktion och drift av byggnader.

Place, publisher, year, edition, pages
Stockholm: KTH Royal Institute of Technology, 2020. , p. 72
Series
TRITA-ITM-AVL ; 2020:31
Keywords [en]
energy efficiency, resource efficiency, construction industry, building sector, innovation, agreements, common-pool resources, multifamily buildings, Sweden, contract theory
Keywords [sv]
energieffektivisering, resursoptimering, byggindustrin, bostadssektorn, innovation, avtal, allmänningar, flerbostadshus, kontraktsteori, Sverige
National Category
Energy Engineering
Research subject
Energy Technology
Identifiers
URN: urn:nbn:se:kth:diva-273752ISBN: 978-91-7873-568-6 (print)OAI: oai:DiVA.org:kth-273752DiVA, id: diva2:1432524
Public defence
2020-08-28, https://kth-se.zoom.us/webinar/register/WN__I0rtt4bQt6cAYv6h9BqhQ, Stockholm, 10:00 (English)
Opponent
Supervisors
Available from: 2020-06-03 Created: 2020-05-27 Last updated: 2023-10-04Bibliographically approved
List of papers
1. Categorizing barriers to energy efficiency in buildings
Open this publication in new window or tab >>Categorizing barriers to energy efficiency in buildings
2015 (English)In: CLEAN, EFFICIENT AND AFFORDABLE ENERGY FOR A SUSTAINABLE FUTURE, 2015, p. 2839-2845Conference paper, Published paper (Refereed)
Abstract [en]

Introducing new technologies in buildings in Sweden have historically been connected with great portions of scepticism, hence influencing the speed of acceptance of new technologies. The speed is slow even though technologies are tested, evaluated, proven to make an impact, and economic efficient. In order to understand acceptance of energy efficient technologies in multifamily buildings and to identify the origin of barriers to energy efficiency this paper investigates barriers as consequences of the current system structure in the Swedish building sector. The study views the Swedish building sector as a sociotechnical system built from technical artefacts, institutions, and actors, thus often deeply embedded in our societies. The Swedish building sector is well structured, resulting in that innovation and development occurring outside of the existing sociotechnical regime might not be recognized as feasible investments. In order to identify the structures enabling barriers to energy efficiency adoption this paper aims at developing a framework for categorizing barriers depending on their structural origin. The categorization framework is inspired by theories of sustainable innovation journeys and of soft systems and distinguishes between three decision-levels for barriers to energy efficiency: Project level, Sector level and Contextual level. By implementing the proposed categorization framework it becomes obvious that problem areas in the building sector are not connected to any specific structural level. However, results in this study reveal that most barriers originate in the Contextual level, which implies that energy and sustainability are not yet key aspects when forming and transforming contextual preconditions on how to design and build multifamily buildings in Sweden. (C) 2015 The Authors. Published by Elsevier Ltd.

Series
Energy Procedia, ISSN 1876-6102 ; 75
Keywords
Energy efficiency, barriers, categorizing, sociotechnical system, multifamily buildings, Sweden
National Category
Environmental Sciences
Identifiers
urn:nbn:se:kth:diva-174959 (URN)10.1016/j.egypro.2015.07.568 (DOI)000361030004071 ()2-s2.0-84947104885 (Scopus ID)
Conference
7th International Conference on Applied Energy (ICAE), MAR 28-31, 2015, Abu Dhabi, U ARAB EMIRATES
Note

QC 20151013

Available from: 2015-10-13 Created: 2015-10-09 Last updated: 2024-03-15Bibliographically approved
2. Problem areas related to energy efficiency implementation in Swedish multifaily buildings
Open this publication in new window or tab >>Problem areas related to energy efficiency implementation in Swedish multifaily buildings
2015 (English)In: Energy Efficiency, ISSN 1570-646X, E-ISSN 1570-6478Article in journal (Refereed) Published
Abstract [en]

This paper investigates problem areas related to energy efficiency implementation in Swedish multifamily buildings. The paper first presents a generic list of (theoretical) problem areas identified through a literature survey. Using a qualitative approach, the paper also investigates if the problem areas identified in the literature also have an impact on the Swedish building sector. Results from the interview study reveal a strong coherence between problem areas in the literature and those expressed by the interviewees. However, this paper identifies seven novel challenges that cannot be derived from the list of barriers in the literature. Moreover, results reveal that as many as 12 problem areas have their origin in national factors such as agreement structures, incentive schemes, and cost calculation methods.

Place, publisher, year, edition, pages
Springer, 2015
Keywords
Energy efficiency, buildings, Sweden, barriers, interview study
National Category
Building Technologies
Research subject
Real Estate and Construction Management
Identifiers
urn:nbn:se:kth:diva-165913 (URN)10.1007/s12053-015-9352-4 (DOI)000368993200006 ()2-s2.0-84955682049 (Scopus ID)
Note

QC 20160223

Available from: 2015-04-30 Created: 2015-04-30 Last updated: 2024-03-15Bibliographically approved
3. Who is Governing the Commons: Studying Swedish Housing Cooperatives
Open this publication in new window or tab >>Who is Governing the Commons: Studying Swedish Housing Cooperatives
2016 (English)In: Housing, Theory and Society, ISSN 1403-6096, E-ISSN 1651-2278, Vol. 33, no 4, p. 424-444Article in journal (Refereed) Published
Abstract [en]

This study examines current governance structures related to multifamily buildings designed by single actors (developers) and operated in cooperative forms. The study analyses the long-term sustainability of the resource regime of study (multifamily buildings) and inked governance structures by applying Ostrom’s eight design principles for long-term survival of self-organized resource regimes (Common-pool resources or CPR’s). The study also searches for signs of movement towards social innovation and collective action in current governance structures. We argue that the structures governing planning, production and operation of housing cooperatives in Sweden do not fulfil the eight design principles for the long-term survival of the resource regime of study, nor do they encourage movement towards social innovation or collective action. In order to ensure the long-term survival of the resource regime of study and to increase innovation in governance structures, five adjustments are proposed; changes in the structures governing risk/profit distribution, communication, collaboration and information between actors in the Swedish cooperative housing sector.

Place, publisher, year, edition, pages
Taylor & Francis, 2016
Keywords
Housing cooperatives, Common-pool resources, Planning, Multifamily buildings, Sweden
National Category
Other Legal Research Criminology
Identifiers
urn:nbn:se:kth:diva-187894 (URN)10.1080/14036096.2016.1186730 (DOI)000383173100003 ()2-s2.0-84983249298 (Scopus ID)
Note

QC 20230927

Available from: 2016-05-31 Created: 2016-05-31 Last updated: 2025-02-20Bibliographically approved
4. Incentivising innovation in the construction sector: the role of consulting contracts
Open this publication in new window or tab >>Incentivising innovation in the construction sector: the role of consulting contracts
2019 (English)In: Australasian Journal of Construction Economics and Building, ISSN 1835-6354, E-ISSN 1837-9133, Vol. 19, no 2, p. 181-196Article in journal (Refereed) Published
Abstract [en]

The issue of whether contracts promote innovation and sustainability is an important but overlooked aspect for achieving energy and environmental targets, as well as for creating smart and sustainable cities. In this article, based on the principle/agent problem and Holmstrom and Milgrom's work on optimal contracts it is argued that the current general conditions of architectural and engineering consulting agreements in Sweden (ABK 09)-a standard type of contract often used in developer/consultant relations-may not incentivize choices that support the long-term goals of society. Furthermore, although this exploratory study specifically analyses a Swedish standard contract, the question of how contractual incentive structures can optimize real-world performance is a general one, and thus the article's findings have general applicability. This exploratory study also points to further research into how contractual structures impact climate-neutral buildings. In this way, Swedish consultants who use ABK 09 are incentivized to include low-risk, well-proven, and widely used technologies in order to minimize risks for themselves. This study contributes to resolving this dilemma by suggesting how ABK 09 could be restructured to change the balance between incentives and risk and incentivize innovation and sustainability. As mentioned above, the current study operates at a theoretical level. It discusses six possible changes that would better align the contract with the societal goals of innovation and sustainability.

Place, publisher, year, edition, pages
UNIV TECHNOLOGY, SYDNEY-UTS EPRESS, 2019
Keywords
Contracts, incentives for innovation, construction sector, institutional economics, Sweden, buildings
National Category
Economics and Business
Identifiers
urn:nbn:se:kth:diva-265952 (URN)10.5130/AJCEB.v19i2.6613 (DOI)000500702300005 ()2-s2.0-85076904286 (Scopus ID)
Note

QC 20200102

Available from: 2020-01-02 Created: 2020-01-02 Last updated: 2022-06-26Bibliographically approved

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