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Strategies for deep renovation market of detached houses
Linnaeus University, Faculty of Technology, Department of Built Environment and Energy Technology.ORCID iD: 0000-0003-0189-474x
Linnaeus University, Faculty of Technology, Department of Built Environment and Energy Technology.ORCID iD: 0000-0003-4405-1056
Linnaeus University, Faculty of Technology, Department of Built Environment and Energy Technology.ORCID iD: 0000-0001-7143-8198
2021 (English)In: Renewable & sustainable energy reviews, ISSN 1364-0321, E-ISSN 1879-0690, Vol. 138, p. 1-10, article id 110659Article in journal (Refereed) Published
Sustainable development
SDG 7: Ensure access to affordable, reliable, sustainable and modern energy for all, SDG 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all, SDG 13: Take urgent action to combat climate change and its impacts by regulating emissions and promoting developments in renewable energy, SDG 1: End poverty in all its forms everywhere
Abstract [en]

Deep renovation of the buildings is a key for sustainable development, however, the rate of deep renovation of residential buildings in the European Union (EU) is lower than what is required to meet the climate and energy goals. This paper analyses peculiarities and commonalities in market conditions and approaches to the deep renovation of single-family (or detached) houses in Denmark and Sweden. The market analysis covers the Political, Economic, Social, and Technical (PEST) dimensions and is based on systematic literature review and findings of market gap analysis. The PEST analysis is complemented with responses from 49 stakeholders/experts to examine the strengths, weaknesses, opportunities, and threats (SWOT analysis) for the deep renovation market. The synthesis of SWOT and PEST led to some strategies for deep renovation. Furthermore, policies and strategies adopted by some other countries have been discussed to place findings from this study in the regional and global context. Capacity building in designing and managing deep renovation with technological advancement and construction practices; and enforcement of quality assurance systems of artisans could avoid the perceived risk, and inconveniences associated with renovation. Encouraging systematically planned stepwise deep renovation through One-Stop shop and linking such renovation with appropriate financing mechanism could attract more homeowners with financial limitations. Besides, clustering several houses in need of renovation and appropriate energy/carbon pricing mechanisms could make the renovation market more attractive for investors and construction companies. The findings of this paper are of interest to construction companies, policymakers, investors, and analysts about the deep renovation market.

Place, publisher, year, edition, pages
Elsevier, 2021. Vol. 138, p. 1-10, article id 110659
National Category
Energy Systems
Research subject
Technology (byts ev till Engineering), Bioenergy Technology
Identifiers
URN: urn:nbn:se:lnu:diva-99593DOI: 10.1016/j.rser.2020.110659ISI: 000612227800001Scopus ID: 2-s2.0-85099182072OAI: oai:DiVA.org:lnu-99593DiVA, id: diva2:1510505
Funder
Swedish Research Council Formas, 2019-00219EU, Horizon 2020, 38-2-15-19EU, Horizon 2020, 754112Available from: 2020-12-16 Created: 2020-12-16 Last updated: 2023-01-27Bibliographically approved
In thesis
1. Prospects for the Development of a One-Stop-Shop Business Model for Energy-Efficiency Renovations of Detached Houses in Sweden
Open this publication in new window or tab >>Prospects for the Development of a One-Stop-Shop Business Model for Energy-Efficiency Renovations of Detached Houses in Sweden
2021 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

The building sector is the biggest energy user in the European Union (EU) and therefore, has an important role to play in meeting the energy and climate goals ofEU. In Sweden, more than 80% of the two million detached houses are more than 35 years of age. Energy efficiency renovation of those old houses can reduce primaryenergy use by 65% to 90%. However, the current low rate of energy renovations (yearly about 1% of the building stock) in the EU in general must at least be doubledto meet the energy and climate goals. The low rate of renovations is attributed, among others, to the fragmented market where various actors offer their service in piecemeal approach and homeownersundergo a complex decision-making process. The introduction of innovative collaborative business models can simplify that complex process and eventuallyaccelerate the rate of energy efficiency renovations. One-stop-shop (OSS) business model is one such model where a single actor coordinates other actors in therenovation value chain to offer comprehensive renovation packages. This model has started to emerge in some parts of the EU, but the knowledge about it remainslimited in the Swedish context.

To examine the prospects for the development of an OSS in the Swedish context, this research investigated the demand (homeowners) and supply-side (professionals)of house renovations, as well as, the general market conditions to develop strategies to promote energy renovation. Online questionnaire survey of homeowners wasconducted covering Kronoberg county (year 2017, 971 answers) and whole Sweden (year 2018, 12194 answers). Interviews were conducted with 21 owners/managersof micro-and small-sized construction enterprises, which are dominant in the house renovation market. Furthermore, 16 interviews were conducted with the ProjectManagers of 4 medium-sized construction enterprises, 4 Loan Officers from four large Swedish banks, and 8 brokers from real-estate agencies. In addition, interviewshave been conducted with the energy advisors of the eight municipalities of Kronoberg County. An analysis based on transaction cost economics and resourcebased theory was conducted to identify the conditions under which the OSS conceptcould emerge in the Swedish market. Market gap analysis, systematic literature review, and consultation with 11 Swedish and international experts in the energyefficiency renovation market, formed the basis for proposing strategies to supportrenovations.

The findings demonstrate that the house's age and the age of the homeowner, as well as, annual household income and environmental and energy awareness of thehomeowner, are the factors influencing renovation decisions and homeowners'  propensity to undertake energy-efficiency renovations. Findings also demonstratethat there are several homeowners capable to constitute a segment of potential early adopters for one-stop-shop. Regarding supply-side actors, the findings demonstratethat, in theory, one-stop-shop is viewed positively, but still supply-side actors are hesitant to adopt the concept, mainly due to the lack of resources and managementcompetence, as well as, the perceived risks associated with a change of their business model. Nevertheless, this research identified two supply-side actor profiles, whounder certain conditions, could be the coordinators of a one-stop-shop. Strategies are also proposed, to make market conditions conducive for energy-efficiencyrenovations in detached houses.

In conclusion, the overall prospects for the development of one-stop-shop for energy-efficiency renovations of detached houses in Sweden can be characterized asmoderately positive. This thesis provides insights on the key issues to be addressed, for one-stop-shop to achieve an acceptable market success and provide a sustainablebusiness to the professionals wishing to become active in the renovation market under this concept.

Abstract [sv]

Den största energianvändaren i Europeiska unionen (EU) är byggnadssektorn, vilken därför har en viktig roll att spela när det gäller att uppfylla energi- och klimatmålen i EU. I Sverige är mer än 80 % av två miljoner småhus äldre än 35 år. Energieffektivitetsrenovering av gamla hus kan minska användningen av primärenergi med 65 % till 90 %. Den nuvarande låga energirenoveringen (årsvis ca 1 % av byggnadsbeståndet) i EU i allmänhet måste dock åtminstone fördubblas för att uppfylla energi- och klimatmålen.

Den låga renoveringstakten tillskrivs bland annat en uppdelad marknad där flera olika aktörer erbjuder sina tjänster i en bitvis sätt. För husägare kan detta bli en komplicerad beslutsprocess. Införandet av innovativa samarbetsinriktade affärsmodeller kan förenkla den komplicerade processen och så småningom påskynda graden av energieffektiva renoveringar. One-Stop-Shop (OSS) affärsmodell är en sådan modell där en enda aktör samordnar samtliga aktörer i värdekedjan för renoveringar genom att erbjuda ett omfattande renoveringspaket.Denna modell har börjat växa fram i vissa delar av EU, men kunskapen om den är fortfarande begränsad i ett svenskt sammanhang.

Denna forskning undersöker möjligheterna för ett utvecklande av OSS. Forskningen har gått ut på att undersöka efterfrågan hos husägare samt även utbudet hos olika aktörer inom husrenovering, tillsammans med allmänna marknadsvillkor för att utveckla strategier för att främja energirenovering. En omfattande enkätundersökning av husägare har genomförts på nätet.Undersökningen omfattande Kronobergs län år 2017 (971 svar) och hela Sverige år 2018 (12 194 svar). Semi-strukturerade intervjuer genomfördes med 21 mikro- och småstora företag, som är dominerande på renoveringsmarknaden, samt med fyra medelstora byggföretag. Utöver det har representanter från fyra svenska storbanker intervjuats, samt åtta mäklare från olika fastighetsbyråer. Intervjuer har även genomförts med energirådgivare från de åtta kommunerna i Kronobergs län. En analys som bygger på transaktionskostnadsekonomi och resursbaserad teorigenomfördes för att identifiera under vilka förhållanden OSS-konceptet skulle kunna växa fram på den svenska marknaden. En analys av marknadsbrister, systematisk litteraturöversikt och elva expertsamråd har legat till grund att utveckla strategier som stöder energirenoveringar. 

Resultaten visar att husets ålder och husägarens ålder, hushållens årliga inkomst och miljö- och energimedvetenhet av husägare är faktorer som påverkar renoveringsbeslut och husägares benägenhet att genomföra energirenoveringar. Resultaten visar också att det finns flera husägare som kan utgöra ett segment av potentiella tidiga användare för one-stop-shop. När det gäller aktörerna på utbudssidan visar resultaten att i teorin en one-stop-shop ses positivt, men fortfarande är aktörerna på utbudssidan tveksamma att anta konceptet, främst pågrund av brist på resurser och ledningskompetens, samt de upplevda riskerna förknippade med en förändring av deras affärsmodell. Ändå identifierade denna  forskning två aktörsprofiler på utbudssidan, som under vissa förhållanden kunde vara samordnare för en one-stop-shop. Strategier föreslås också för att göra marknadsförhållandena gynnsamma för energieffektivitetsrenoveringar i småhus. Trots detta har forskningen identifierat två aktörsprofiler, som under vissa förutsättningar skulle kunna anta one-stop-shop modellen. Flera olika strategier för småhus har föreslagits för att göra marknadsmässiga villkor som främjar energirenoveringar.

Sammanfattningsvis kan de övergripande utsikterna för utveckling av one-stopshop för energirenovering av småhus i Sverige karakteriseras som måttligt positiva. Denna avhandling ger insikter om de nyckelfrågor som ska behandlas, för one-stopshop för att uppnå en acceptabel marknads succés och ge en hållbar verksamhet till de yrkesverksamma som vill bli aktiva på renoveringsmarknaden enligt detta koncept.

Place, publisher, year, edition, pages
Växjö: Linnaeus University Press, 2021. p. 247
Series
Linnaeus University Dissertations ; 411/2021
Keywords
Detached houses, Energy-efficiency renovations, Homeowners, Onestop-shop, Policy instruments, Renovation decisions, Supply-side actors, Transaction costs, Småhus, Energirenoveringar, Husägare, One-stop-shop, Policyinstrument, Renoveringsbeslut, Aktörer på utbudssidan, Transaktionskostnader
National Category
Other Environmental Engineering Construction Management
Research subject
Technology (byts ev till Engineering), Civil engineering; Technology (byts ev till Engineering), Sustainable Built Environment
Identifiers
urn:nbn:se:lnu:diva-101919 (URN)9789189283572 (ISBN)9789189283589 (ISBN)
Public defence
2021-04-23, N1017, Växjö, 10:00 (English)
Opponent
Supervisors
Funder
EU, Horizon 2020The Kamprad Family Foundation
Available from: 2021-04-06 Created: 2021-04-01 Last updated: 2024-03-05Bibliographically approved

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Mainali, BrijeshMahapatra, KrushnaPardalis, Georgios

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