In its different forms, the built environment is the single largest energy consumer in the EU, and one of the largest carbon dioxide emitters. Green buildings and smart technologies are two of the most important elements to reach this goal. In a situation where the use of new technologies and new knowledge becomes more important as well as the news flow increase the role of the technical consultant becomes more important. Also, the client/developer role become increasingly important when buildings turn from storage facilities to service generating entities. A closer alliance between client and consultant is necessary to align business models with new technologies. Contracts are the most important instrument to shape incentive structures for optimal economic outcomes, as well as for shaping incentives for optimal operation of smart and sustainable buildings. In this paper we propose a contract design that incentivise consultants to fully use their knowledge to make sure that planned systems are installed and operated in an optimal manner. There are in general two approaches to this type of contract design. The first is to write a detailed contract setting out how to deal with possible outcomes going forward. The second, and the approach used in this paper, is to write a less detailed contract that sets out a framework of incentives for continuing cooperation and to keep a good reputation.

This innovative book uses in-depth empirical studies of scientific articles and takes inspiration from Nobel laureates to explore how theories and models are used in economics. Hans Lind ultimately illustrates that economics studies a 'chaos-theoretic' system where a theory is a framework that helps formulate hypotheses rather than a set of statements about how an economy works. Based on these empirical studies Lind analyses different kinds of path-breaking contributions in economics and why these developments do not fit Kuhn's theory of progress in science. Through the close analysis of scientific articles, chapters also discuss why analysis of a simple model can help us understand how the real economy works and how a new idea becomes accepted through everyday observations, the building of models and empirical studies. He argues that it is crucial to use a range of methods, including case studies and mathematical models, to help identify causes and patterns in a science that studies a chaos-theoretic system. Written in an accessible style, Theories and Models in Economics will prove a vital resource for scholars looking for a greater understanding of both the methodology and the development of economics. It will appeal to practitioners and social scientists more broadly who are interested in learning more about how economists conduct their research and how this differs from other disciplines.

Purpose: The purpose of this article is to study how fair values in financial reports are audited. Design/methodology/approach: The study is a qualitative case study based on in-depth interviews. Findings: One important finding is that auditors anchor in the figure presented by the company, and despite the auditing efforts, there is a substantial risk of management bias in the fair values reported. There is a risk for confirmation bias. Research limitations/implications: Relatively, few respondents were employed in this study, but their background and competence lead to the assessment that the study provides a representative picture of what is being investigated. Practical implications: Auditors may need to develop ways of performing auditing of fair values to reduce the risks identified in this study. Social implications: This study presents a perspective of the auditing process enabling an evaluation of the quality of fair value estimates regarding investment properties in the financial reports. This study also provides users of financial reports as investors, bankers and other institutions with an enhanced understanding of reported estimates of fair (market) values. Originality/value: Very few studies have investigated how auditors evaluate fair values of investment properties. This study contributes by giving users of financial reports an enhanced understanding of the quality of reported estimates of fair (market) values.

Since 1993, the Ethiopian government has been using the urban land leasing system to monetize the increase in land value created due to factors other than private investment. Thus, this paper aims to explore and understand whether Bahir Dar city is leveraging the urban land lease system as a strategic value capture instrument to enhance its local revenue or not. This study has used the qualitative research method and in-depth analysis. It has used a desk review of documents and key informant interviews of experts and brokers to collect the data required to realize the objective of this study. The study has found that the majority of the urban land is held in a permit system, with landholders paying a small amount of land rent per annum. In addition, the study has uncovered that the city has transferred most of its land through administrative allotment at low and outdated benchmark prices, which has dwindled its lease revenue. Moreover, it has identified that there is weak enforcement of the lease payment collection, and it has adversely affected the city's urban revenue generation potential. As a result, the city is not leveraging the public land leasing system as a strategic value capture instrument. Based on these findings, this paper has advised the government to implement a modern property tax system to capture value increment on permit holding land. In addition, the study proposes to carry out an empirical investigation and identify the factors that significantly affect the benchmark prices and update the benchmark price regularly given those factors. Moreover, the study has suggested a proper enforcement of the lease payment collection in the city.

Boken ska ge de som utför eller tar del av fastighetsvärderingar en inblick i hur utvecklingen av synsätt och metoder varit för fastighetsvärdering sedan 1940-talet. Tanken är den vanliga vid historieskrivningar: Vad kan vi lära oss av historien när vi försöker blicka framåt?Värderingsbranschen förser samhället med beslutsunderlag för olika aktiviteter på fastighets- och byggmarknaderna. En titt tillbaka i tiden visar hur nya teorier och ny information tillsammans med teknikutveckling och entreprenörskap förändrar en hel bransch. De som nu funderar över hur en digitaliserad omvärld kan bidra till att skapa nya former av beslutsunderlag finner att steget från 1950-talets arronderingstal till nutidens algoritmer är mera semantiskt än innehållsmässigt.Denna bok om utvecklingen av fastighetsvärdering i Sverige har möjliggjorts genom en donation från Svenskt fastighetsindex SFI ekonomisk förening till KTH:s avdelning för bygg- och fastighetsekonomi vid institutionen för fastigheter och byggande inom ABE-skolan.

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.

Purpose The purpose of this paper is to discuss how the concepts market value (MV) and exit price should be interpreted in thin markets and how accounting rules may need to change to take this into account. Design/methodology/approach This is a conceptual paper using hypothetical examples as a base for the conclusions. Findings In a thin market, actors can have rather different reservation prices. The price will then be set through bargaining and the agreed price could be considerable above the reservation price of the actor with the second highest reservation price. The exit price should then be below what the MV was before the transaction and below the entry price, and according to the current accounting rules, the value in the balance sheet should then be below the price paid. The authors' experience is, however, that this rarely happens in practice. Originality/value As far as the authors know, this is the first paper that looks at problems in the current value concepts related to differences in reservation prices in thin markets.

Purpose The purpose of this study is to describe and analyse the methods and standards of valuation used by Swedish professional property valuers when appraising commercial properties and factors affecting those standards. The study builds on a 2002 comparative study of valuers in four European countries by McParland et al. (2002), but focuses specifically on property valuers in Sweden. Design/methodology/approach In 2010-2011, a questionnaire was used in face-to-face interviews with about half of the authorised property valuers in Sweden. Another questionnaire was emailed to all authorised property valuers in Sweden 2015 and again about half participated. Findings Analysis of the results shows some new trends in used and preferred standards and methods. Although Swedish valuers still rely mainly on local guidelines, they now increasingly use international standards and company guidelines, which may indicate a growing, if indirect, form of internationalisation. Swedish valuers still use discounted cash flow as their primary method, but their use of comparative methods has increased. Originality/value The data in this comparative study of valuation standards and methods over time used were collected from a specific group of property valuers authorised through the professional Swedish organisation Samhallsbyggarna (Swedish Professionals for the Built Environment), which contributes to an insight in the presiding of the harmonisation of valuation methods and standards.

The purpose of this study is first to examine and compare sustainable strategies within public and private housing companies in declining markets in central Sweden. Then, the study evaluates the impact of new legislation that requires public housing companies to act in a ‘businesslike’ way, in the same way as a long-term private company. A quantitative study was conducted based on a survey sent to 72 housing companies. The results show that public housing companies are more strategy oriented than private housing companies. The results can be viewed as an on-going interaction process, where a company’s strategies affect its profit. The study aims toincrease the understanding of activities within housing companies in adeclining market that engage the companies in sustainable strategies to improve their market knowledge and profit.