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Green building, split-incentives and affordable rental housing policy

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  • Stefen MacAskill
  • Rodney A. Stewart
  • Eduardo Roca
  • Benjamin Liu
  • Oz Sahin

Abstract

We investigate the notion of capitalizing on investments in energy, water and gas efficiency within the context of affordable rental housing subsidy schemes; how associated utility savings offer a means to deliver policy designed to mitigate for issues of split-incentives. An Australian case study representing a typical affordable housing development is analyzed for two scenarios - a ‘Business as usual’ and ‘Green-certified’ case. Over a 10-year rental tenancy, operational utility efficiencies, achieved through green building principles are modelled to reduce total housing costs by 1.7–3.8% (AUD $5–18 per week), for one- and four-person households, respectively. Over the building lifecycle, the net present value of improvements are forecasted to be positive, signalling favourable support for policy interventions. The findings provide evidence to support a broader notion of ‘housing assistance’ to one that includes improved standards on residential utility efficiency. We present three policy options on how to deliver these benefits to stakeholders.

Suggested Citation

  • Stefen MacAskill & Rodney A. Stewart & Eduardo Roca & Benjamin Liu & Oz Sahin, 2021. "Green building, split-incentives and affordable rental housing policy," Housing Studies, Taylor & Francis Journals, vol. 36(1), pages 23-45, January.
    • Handle: RePEc:taf:chosxx:v:36:y:2021:i:1:p:23-45
    DOI: 10.1080/02673037.2019.1677861
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    Cited by:

    1. Weimin Ma & Zitong Ren & Hua Ke, 2022. "Green Housing Subsidy Strategies Considering Consumers’ Green Preference," Sustainability, MDPI, vol. 14(5), pages 1-22, February.
    2. António Duarte Santos & Hélio Castro, 2022. "Housing and Setting Constraints: The Portuguese Evidence," Sustainability, MDPI, vol. 14(18), pages 1-14, September.

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