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Incentives for improving energy efficiency when renovating large-scale housing estates: A Case Study of the Swedish Million Homes Programme
KTH, School of Architecture and the Built Environment (ABE), Real Estate and Construction Management, Building and Real Estate Economics.ORCID iD: 0000-0003-2736-5176
KTH, School of Architecture and the Built Environment (ABE), Real Estate and Construction Management, Building and Real Estate Economics.ORCID iD: 0000-0003-4841-5056
KTH, School of Architecture and the Built Environment (ABE), Urban Planning and Environment, Urban and Regional Studies.
2009 (English)In: Sustainability, ISSN 2071-1050, Vol. 1, no 4, 1349-1365 p.Article in journal (Refereed) Published
Abstract [en]

Sweden has adopted ambitious energy savings objectives for buildings, but at the current rate of energy efficiency investments the objectives are unlikely to be reached. In this article we report the early findings of how real estate owners reason and act in energy efficiency investment decisions. Based on the results from interviews with the real estate companies, the companies have been divided into four ideal types that illuminate the differences in energy efficiency ambition and strategies; the Strict Profit Maximizing Company, the Little Extra Company, the Policy Led Ambitious Company and the Administration Led Ambitious Company. The different strategies will determine how the companies respond to incentives to invest in energy efficiency, and affect the overall result in the energy efficiency work. The ideal types hence are important to have in mind when designing policies to increase energy efficiency.

Place, publisher, year, edition, pages
2009. Vol. 1, no 4, 1349-1365 p.
Keyword [en]
energy efficiency in buildings, sustainable renovation, incentives for energy efficiency, ideal types
National Category
Civil Engineering
Identifiers
URN: urn:nbn:se:kth:diva-25781Scopus ID: 2-s2.0-78049494860OAI: oai:DiVA.org:kth-25781DiVA: diva2:359841
Available from: 2010-10-31 Created: 2010-10-31 Last updated: 2014-12-18Bibliographically approved
In thesis
1. Incentives for energy efficiency measures in post-war multi-family dwellings
Open this publication in new window or tab >>Incentives for energy efficiency measures in post-war multi-family dwellings
2011 (English)Licentiate thesis, comprehensive summary (Other academic)
Abstract [en]

Energy efficiency is an important question to society as well as to individuals and firms. Improving energy efficiency in the building sector is considered an important means to climate mitigation. For real estate owners energy is also a central expenditure item and reducing energy consumption may directly reduce operation costs while at the same time serve as insurance against future energy price increases. Since new buildings only add a few percent annually to the building stock, the potential to reduce total energy consumption primarily lies within the existing building stock. The building stock is ageing and the post-war part of the stock that is in need of renovation is growing. This has been suggested as a window of opportunity to improve energy efficiency, but so far the results have been few. Several factors have been put forward to explain the so called energy efficiency gap – the difference between actual and optimal energy efficiency – one of which is split incentives. What adds to complexity in this case is that distinct differences have been observed in the level of ambition between the real estate companies that have renovated so far. Some companies have undertaken extensive renovation and energy efficiency measures, whereas other companies have done little more than urgent maintenance measures. It seems that real estate owners in general don´t have strong economic incentives to improve energy efficiency in connection to renovation – but what can then explain the differences between strategies?

This licentiate thesis examines the incentives among real estate owners to improve energy efficiency, particularly in post-war, multi-family buildings in need of renovation. The purpose is to add knowledge about decisions concerning measures that improve energy efficiency - in terms of incentives, barriers and different motives for real estate owners’ strategies and actions.

Results show that real estate owners lack strong economic incentives to invest in energy efficiency in multi-family buildings and the level of investment is dependent on the different motivations, grouped in three levels of ambition, that real estate companies have. One important conclusion is that the heterogeneity between companies that was exposed in the interviews and survey implies that they will not respond similarly to policy stimuli. The heterogeneity should thus be considered when designing policy measures so that public and company resources can be allocated as efficiently as possible, as there are many challenges facing owners of post-war residential buildings. Another conclusion is that from an economic point of view it is important to take the interaction between different measures into account, e.g. between physical measures and measures focusing on changing household behavior.

Place, publisher, year, edition, pages
Stockholm: KTH Royal Institute of Technology, 2011. 99 p.
Series
Trita-FOB-LIC, 2011:3
Keyword
energy efficiency, housing companies, sustainable renovation, residential buildings, split incentives
National Category
Economics and Business
Identifiers
urn:nbn:se:kth:diva-35259 (URN)978-91-978692-7-0 (ISBN)
Presentation
2011-06-13, L1, Drottning Kristinas väg 30, KTH, Stockholm, 11:41 (Swedish)
Opponent
Supervisors
Note
QC 20110630Available from: 2011-06-30 Created: 2011-06-23 Last updated: 2011-11-10Bibliographically approved
2. Building Sustainability: Studies on incentives in construction and management of real estate
Open this publication in new window or tab >>Building Sustainability: Studies on incentives in construction and management of real estate
2014 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

This thesis summarizes the results from several studies with connection to sustainability in construction and management of real estate. Here, the concept sustainability includes environmental, social and economic dimensions and focus is on the actors with the best possibilities to impact real estate, namely the real estate owners and the developers. The thesis consists of six papers. Real estate owners’ perception of and incentives and strategies for sustainability was studied in four ways: incentives for energy efficiency and other sustainability issues in connection to renovation (papers I and II), factors that characterize firms with an ambitious approach to energy efficiency (paper V) and economic incentives for energy efficiency (paper VI). Developers’ behavior and impact on sustainability was studied in two ways: how developers’ planning and construction methods may influence energy consumption for future residents (paper III) and how developers relate to requirements for building environmental certification levels (paper IV).

The first paper aims to clarify how housing firms see and treat energy efficiency matters in connection to renovation of multi-family buildings constructed during the 1960’s and 70’s. Interviews with housing firms resulted in four ideal housing firm types illustrating that housing firms have more or less incentives to improve energy efficiency. The second paper aimed to study a model for renovation of buildings in a residential area in peripheral Stockholm and to assess how it considers environmental, social and economic sustainability as well as technical concerns.

Paper V builds on the results in paper I and aims to identify factors, on a firm level as well as in the surroundings of the firm, that characterize housing firms who own multi-family buildings from the 1960’s and 70’s and who have an ambitious approach to energy efficiency.

Paper VI uses information from energy performance certificates to study whether better energy performance increases the selling price of single-family homes, which would increase owners’ incentives to improve energy efficiency.

Paper III takes its starting point in an indicated shift in developers’ planning and construction practices for laundry facilities in owner-occupied multi-family buildings. The paper aims to clarify whether a shift has actually occurred from communal laundry rooms to in-unit laundry appliances and to illuminate the impact this could have on residents’ energy consumption for laundry. Paper IV reports the study of how developers who have adopted the environmental certification system LEED relate to the requirements for specific certification levels and how updated requirements risk undermining developers’ incentives for sustainable construction.

Abstract [sv]

Den här avhandlingen sammanfattar arbetet från flera studier med koppling till hållbarhet inom bygg och förvaltning av fastigheter. Begreppet hållbarhet omfattar här tre dimensioner: miljömässig, social och ekonomisk hållbarhet, och fokus ligger på de aktörer som har mest möjlighet att påverka fastigheterna, nämligen fastighetsägare och projektutvecklare. I avhandlingen ingår sex uppsatser. Fastighetsägares uppfattning av och incitament och strategier för hållbarhet undersöktes på fyra olika sätt: incitament för energieffektivisering och andra hållbarhetsfrågor i samband med renovering (uppsats I och II), faktorer som karaktäriserar företag med ett ambitiöst förhållningssätt i energieffektiviseringsfrågor (uppsats V) samt ekonomiska incitament för energieffektivisering (uppsats VI). Projektutvecklares beteende och påverkan på hållbarhet undersöktes på två sätt: hur projektutvecklares planering och byggmetoder kan påverka energianvändningen för framtida boende (uppsats III) och hur projektutvecklare förhåller sig till kravnivåer i miljöcertifiering av byggnader (uppsats IV).

Den första uppsatsen syftar till att belysa hur bostadsföretag ser på och behandlar energieffektiviseringsfrågor i samband med renovering av flerbostadshus byggda under miljonprogrammet. Baserat på intervjuer med bostadsföretag resulterade den explorativa studien i konstruktionen av fyra idealtyper av bostadsföretag med mer eller mindre incitament för att energieffektivisera. Den andra uppsatsen syftade till att undersöka en modell för renovering av miljonprogramshus i ett bostadsområde i Stockholms ytterområden och bedöma hur den tar hänsyn till miljömässig, social och ekonomisk hållbarhet tillsammans med tekniska överväganden.

Uppsats V bygger på resultaten i uppsats I och syftar till att urskilja faktorer, såväl på företagsnivå som i företagets omgivning, som karaktäriserar bostadsföretag som äger flerbostadshus från miljonprogramsåren och som har en ambitiös hållning i energieffektiviseringsfrågor.

Uppsats VI använder information från energideklarationer för att undersöka om bättre energiprestanda ökar försäljningspriset på småhus, något som skulle öka ägarens incitament för energieffektivisering.

Uppsats III utgår från en indikerad förändring i projektutvecklares planering och byggmetoder av tvättinrättningar i flerbostadshus med bostadsrätt. Uppsatsen syftar till att klarlägga om en förändring har skett från gemensam tvättstuga till tvättmöjligheter i den egna bostaden och belysa vilken effekt det skulle kunna ha på de boendes energianvändning för tvätt. I uppsats IV klarläggs hur projektutvecklare som bygger enligt miljöcertifieringssystemet LEED förhåller sig till kraven för att uppnå nivåerna för att klassificeras och hur uppdaterade kravnivåer riskerar att undergräva projektutvecklarnas incitament för att bygga hållbart.

Place, publisher, year, edition, pages
Stockholm: KTH Royal Institute of Technology, 2014
Series
TRITA-FOB, PHD-14:5
Keyword
sustainability, sustainable buildings, sustainable renovation, sustainable construction, sustainable management, housing, sustainable building certification, energy efficiency, incentives
National Category
Economics and Business
Research subject
Real Estate and Construction Management
Identifiers
urn:nbn:se:kth:diva-157936 (URN)978-91-85783-40-3 (ISBN)
Public defence
2015-01-16, F3, Lindstedtsvägen 26, KTH, Stockholm, 13:15 (English)
Opponent
Supervisors
Funder
Cerbof, 40Swedish Research Council Formas, 2012-553
Note

QC 20141218

Available from: 2014-12-18 Created: 2014-12-18 Last updated: 2015-06-16Bibliographically approved

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