REAL ESTATE DEVELOPERS' CONCERNS ABOUT UNCERTAINTY IN BUILDING ENERGY EFFICIENCY (BEE) INVESTMENT—A TRANSACTION COSTS (TCS) PERSPECTIVE

2012 ◽  
Vol 7 (4) ◽  
pp. 116-129 ◽  
Author(s):  
Queena K. Qian ◽  
Edwin H.W. Chan ◽  
Lennon HT Choy
Keyword(s):  
Energy Efficiency ◽  
Real Estate ◽  
Transaction Costs ◽  
Large Scale ◽  
Energy Use ◽  
Transaction Cost Economics ◽  
Building Energy ◽  
Building Energy Efficiency ◽  
Economic Market ◽  
Real Estate Developers

Buildings account for 40% of global energy consumption and nearly one-third of global CO2emissions; and the resulting carbon footprint significantly exceeds that of all forms of transportation combined. Attractive opportunities exist to reduce buildings' energy use at lower costs and higher returns than in other sectors. This paper analyzes the concerns of uncertainty, in terms of transaction costs, to the real estate developers when they make decisions about investing in Building Energy Efficiency (BEE). To solicit views of developers regarding BEE investment, in-depth interviews were conducted with 15 executives and architects who work in big real estate development firms covering 80% of real estate activities in Hong Kong. This research applies transaction cost economics (TCE) to study the underlying reasons resulting from uncertainty that cause market reluctance to accept BEE by choice. It provides a detailed analysis of the current situation and future prospects for BEE adoption through studying the impacts from three aspects: economic, market and policy uncertainties. It delineates the market and suggests possible policy solutions to overcome the uncertainties and to attain the large-scale deployment of energy-efficient building techniques. The findings establish the groundwork for future studies on how to choose a particular policy package and what roles government should play to solve the existing problems in BEE development.

Drivers of Investment in Commercial Real Estate Sustainability: 2006–2018

2019 ◽  
Vol 11 (1) ◽  
pp. 130-155
Author(s):  
Michael Brooks ◽  
J.J. McArthur
Keyword(s):  
Energy Efficiency ◽  
Real Estate ◽  
Public Relations ◽  
Building Energy ◽  
Business Case ◽  
Commercial Real Estate ◽  
Building Energy Efficiency ◽  
Number Of Factors ◽  
Near Future ◽  
Asset Managers

We investigate the factors (“drivers”) that motivated investment in energy efficiency in commercial real estate office buildings over the 2006–2011 and 2012–2017 period, and looking forward from 2018 in the context of growing concern over carbon emissions around the world. These insights were collected from large Canadian asset managers through interviews conducted in 2017 and 2018. Key findings were that (1) organizations noted an increasing number of factors driving investment decisions over the three periods; (2) cost drivers (payback period and anticipated financial returns) were the top two drivers in 2006–2017; (3) public relations factors became significantly more important looking forward, with brand (reputational impact) as the top-ranked driver and tenant attraction tied for third place; and (4) mitigation against risks such as resilience and anticipated compliance consistently increased in importance. This study contributes to a comprehensive understanding of past, present, and near-future sustainable real estate investment priorities, changing owner behaviors, and the perceived business case for building energy efficiency investments.

scholarly journals BUILDING ENERGY AND ARCHITECTURAL FORM RELATIONSHIPS / PASTATO ENERGIJOS IR ARCHITEKTŪRINĖS FORMOS RYŠIAI

2011 ◽  
Vol 3 (3) ◽  
pp. 67-71 ◽  
Author(s):  
Roberts Riekstiņš
Keyword(s):  
Energy Efficiency ◽  
Environmental Sustainability ◽  
Energy Efficient ◽  
Large Scale ◽  
Building Energy ◽  
Substantial Part ◽  
Building Energy Efficiency ◽  
Total Energy Consumption ◽  
Architectural Form ◽  
Energy Efficient Building

Energy efficiency of buildings, of course, is now a major issue in the construction industry. It is being widely examined both among construction professionals and amateurs. There is no doubt that energy efficiency as a key factor in ensuring environmental sustainability will become the main driving force of the construction in the future. Buildings have to become more energy-efficient. This opinion is supported by the existing energy-use balance in Europe, indicating that the housing sector spends almost half of total energy consumption and building sector forms more than a third of total CO2 emissions (Bradley 2010). While discussing the subject of building energy efficiency, mostly different technical characteristics of buildings and engineering solutions are talked over. However, it has been relatively little examined how energy-efficient design affects the building’s architecturally-aesthetic side, styles of expression and trends in the architect’s profession. We learn that the essence for an energy-efficient building lies in smart modesty (Bokalders, Block 2010) and the rational utilization of materials (aim high – go low). And still – can energy efficient building be expressive, extravagant, and perhaps – even ambitious? There are many ideas implemented in projects which show that energy efficiency is not an obstacle to large scale architectural ideas. However, in order to combine architectural and artistic ambitions with the principles of sustainability, architects should search for an entirely new approach to architectural expression based on a detailed assessment of solutions applied from environmental point of view. It requires a complex understanding of building shape, applied technologies, energetic benefits and cost parameters. This article identifies the realised and experimental projects of the world and presents an analysis of classification of buildings according to typology. This publication gives general impression of the amplitude and topicality of the study issue, as well as the diversity applied to the architectural techniques. The article concludes that even creating a building’s shape in a smart way makes it possible to use substantial part of the renewable energy offered by nature.

scholarly journals Spatial and Behavioral Thermal Adaptation in Net Zero Energy Buildings: An Exploratory Investigation

2020 ◽  
Vol 12 (19) ◽  
pp. 7961 ◽  
Author(s):  
Shady Attia
Keyword(s):  
Energy Efficiency ◽  
Thermal Comfort ◽  
Energy Use ◽  
Thermal Adaptation ◽  
Building Energy ◽  
Building Energy Efficiency ◽  
Zero Energy ◽  
Net Zero Energy ◽  
Net Zero ◽  
Energy Efficiency Standards

Climate responsive design can amplify the positive environmental effects necessary for human habitation and constructively engage and reduce the energy use of existing buildings. This paper aims to assess the role of the thermal adaptation design strategy on thermal comfort perception, occupant behavior, and building energy use in twelve high-performance Belgian households. Thermal adaptation involves thermal zoning and behavioral adaptation to achieve thermal comfort and reduce energy use in homes. Based on quantitative and qualitative fieldwork and in-depth interviews conducted in Brussels, the paper provides insights on the impact of using mechanical systems in twelve newly renovated nearly- and net-zero energy households. The article calls for embracing thermal adaptation as a crucial design principle in future energy efficiency standards and codes. Results confirm the rebound effect in nearly zero energy buildings and the limitation of the current building energy efficiency standards. The paper offers a fresh perspective to the field of building energy efficiency that will appeal to researchers and architects, as well as policymakers.

scholarly journals The New Market Transformation Needed for Commercial Building Energy Efficiency

2016 ◽  
Vol 9 (1) ◽  
pp. 229
Author(s):  
Valerie Patrick ◽  
Leslie A. Billhymer ◽  
William Shephard
Keyword(s):  
Energy Efficiency ◽  
Energy Use ◽  
Building Energy ◽  
Department Of Energy ◽  
Building Energy Efficiency ◽  
Commercial Building ◽  
Innovation Cluster ◽  
Stakeholder Perspectives ◽  
Regional Market ◽  
Market Transformation

The U.S. Department of Energy [DOE] established the Consortium for Building Energy Innovation [CBEI] to address commercial building energy efficiency as an innovation cluster, where the regional market context (Note 1) guides the research agenda for market transformation (Porter, 2001). CBEI develops content to support Advanced Energy Retrofits (AERs), a retrofit which results in 50% or greater reduction in building energy use, in small- and medium- sized commercial buildings (less than 250 000 ft<sup>2</sup>). The challenge is collecting input for a market with many stakeholders so that a strategy emerges to implement AERs. This research applies systems and complexity theories to develop a strategy to promote the emergence of AERs in this market incorporating multiple stakeholder perspectives (Note 2).

scholarly journals A Conceptual Benefits Realization Model for Minimization of Transaction Costs in Building Energy Efficiency (BEE) Affordable Housing Delivery

2019 ◽  
Vol 266 ◽  
pp. 03013
Author(s):  
Abdulazeez U. Raji
Keyword(s):  
Energy Efficiency ◽  
Transaction Costs ◽  
Affordable Housing ◽  
Building Energy ◽  
Project Team ◽  
Building Energy Efficiency ◽  
Housing Projects ◽  
Specific Investment ◽  
Benefits Realization ◽  
Key Dimensions

Energy efficiency is fundamental to enhancing homes affordability. There are several unique challenges to affordable housing that owner-developers need to address in order for energy efficiency to make significant economic sense. Issues such as Transaction Costs (TCs) plays a significant role in achieving building energy efficiency (BEE) for affordable housing delivery. It is evident that split incentives, information asymmetry, institutional transition, opportunistic behavior, and ill-informed users incur different levels of TCs and affect stakeholder’s willingness to take part in BEE for affordable housing. A better understanding of the nature and structure of TCs is indispensable to enhance the market-drive and investment for BEE affordable housing. Uncertainty, specific investment, frequency, and bounded rationality seen as the key dimensions of TCs. The research focuses on how to minimize TCs involve in BEE affordable housing delivery. It was found in the literature that, the level of TCs for building energy efficiency estimated at 20.5% of total project costs. A conceptual competency-driven benefits realization model is proposed for minimizing TCs taking into consideration the peculiarities of the current housing projects delivery. This research aims to establish the significance of leveraging on BEE project team-competency and commitment organized within a strategic Benefits Realization Management framework to optimize client‘s benefits regarding minimizing TCs. The focus is on the aspect of a developer’s competencies and their project team commitment concerning minimizing TCs that structured within a Benefits Realization Management (BRM) practice. This model is proposed as a pro-active enabler tool to achieve Value for Money in BEE affordable housing projects. This paper is part of a series of publications.

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