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Sustainable renovation strategy in the Swedish Million Homes Programme: A case study

Author

Listed:
  • Lind, Hans

    (Department of Real Estate and Construction Management, Royal Institute of Technology)

  • Annadotter, Kerstin

    (Department of Real Estate and Construction Management, Royal Institute of Technology)

  • Björk, Folke

    (Division of Building Technology)

  • Högberg, Lovisa

    (Department of Real Estate and Construction Management, Royal Institute of Technology)

  • af Klintberg, Tord

    (Division of Building Technology)

Abstract

The first part of the study concerns the concept ”sustainable renovation”. Four parts are identified and then used in the case study: environmental sustainability (including energy efficiency and choice of materials); social sustainability (interpreted as that the current tenants should be able to stay in the area), economic sustainability (the the project does not have to be subsidized and that there is no increase in cost for the social authorities) and finally a new interpretation that is called technical sustainability, which means that solutions with long term reliability is chosen even if this is not necessarily best from an economic and environmental perspective. The second part of the study applies this framework to analyze the renovation strategy of a municipal housing company in the suburbs of Stockholm. This case was chosen because they had clear social ambitions and offered the tenants three alternative renovation options called mini, midi and maxi. Most tenants chose the minialternative and this meant that they could afford to stay and that there was not any increase in the cost for the social authorities. An investment analysis showed that the minialternative had a positive net present value, but that the midi/maxi alternative where more profitable. The company had no specific environmental focus and energy use was only reduced with 8%. Technological sustainability was more important for the company. As a conclusion the study shows that a sustainable renovation is possible but that there are a number of conflicts between the different dimensions of sustainability. Giving more weight to environmental sustainability would increase cost and rents which create problems from a social perspective. From an economic perspective the midi/maxi alternatives were more profitable but then some households would have to move out because too high rents.

Suggested Citation

  • Lind, Hans & Annadotter, Kerstin & Björk, Folke & Högberg, Lovisa & af Klintberg, Tord, 2014. "Sustainable renovation strategy in the Swedish Million Homes Programme: A case study," Working Paper Series 14/2, Royal Institute of Technology, Department of Real Estate and Construction Management & Banking and Finance.
    • Handle: RePEc:hhs:kthrec:2014_002
    as

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    References listed on IDEAS

    as
    1. Marja Elsinga & Hans Lind, 2013. "The Effect of EU-Legislation on Rental Systems in Sweden and the Netherlands," Housing Studies, Taylor & Francis Journals, vol. 28(7), pages 960-970, October.
    2. Liane Thuvander & Paula Femenías & Kristina Mjörnell & Pär Meiling, 2012. "Unveiling the Process of Sustainable Renovation," Sustainability, MDPI, vol. 4(6), pages 1-26, June.
    3. George Galster, 2007. "Neighbourhood Social Mix as a Goal of Housing Policy: A Theoretical Analysis," European Journal of Housing Policy, Taylor and Francis Journals, vol. 7(1), pages 19-43.
    4. George Galster, 2007. "Neighbourhood Social Mix as a Goal of Housing Policy: A Theoretical Analysis," International Journal of Housing Policy, Taylor & Francis Journals, vol. 7(1), pages 19-43.
    5. Michael A. Valenti & Olivier G. Giovannoni, 2013. "The Economics of Inclusion: Building an Argument for a Shared Society," Economics Working Paper Archive wp_755, Levy Economics Institute.
    6. Lovisa Högberg & Hans Lind & Kristina Grange, 2009. "Incentives for Improving Energy Efficiency When Renovating Large-Scale Housing Estates: A Case Study of the Swedish Million Homes Programme," Sustainability, MDPI, vol. 1(4), pages 1-17, December.
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    Keywords

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    JEL classification:

    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy

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