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Energy efficiency at what cost?: Unjust burden-sharing of rent increases in extensive energy retrofitting projects in Sweden
RISE Research Institutes of Sweden, Built Environment, System Transition and Service Innovation. Lund University, Sweden.ORCID iD: 0000-0001-7568-3334
RISE Research Institutes of Sweden, Built Environment, System Transition and Service Innovation.ORCID iD: 0000-0002-5044-6989
RISE Research Institutes of Sweden, Built Environment, System Transition and Service Innovation.ORCID iD: 0000-0002-8107-7768
RISE Research Institutes of Sweden, Built Environment. Lund University, Sweden.ORCID iD: 0000-0002-3863-0740
2022 (English)In: Energy Research & Social Science, ISSN 2214-6296, E-ISSN 2214-6326, Vol. 92, article id 102791Article in journal (Refereed) Published
Abstract [en]

Although renovation costs can lead to rent increases in energy retrofitting, it is often assumed that reductions in energy costs will counterbalance the rent increase. In Swedish multifamily housing, energy costs for heating are however generally included as a fixed component in the monthly rent, meaning that the rent increase after energy retrofitting corresponds to the net change in rent level as well as energy costs for heating. This makes Sweden a methodologically advantageous setting for studying tenants' cost burden of energy retrofitting. The aim of this study was thus to investigate how energy performance improvement has affected rent increases in Swedish renovation projects between 2013 and 2019. Utilising a national database of multifamily housing, it was found that energy retrofitting entailed a cost relief for tenants in renovation projects with smaller investments. However, in renovation projects with larger investments, energy retrofitting entailed a cost burden for tenants. Moreover, public housing companies had conducted a high share of the extensive energy retrofits, leading to low-income tenant groups being disproportionately subjected to cost burdens of energy retrofitting. On the contrary, light energy retrofits with a cost relief for energy efficiency had been rather evenly distributed across income groups. These results indicate ongoing conflicts with the ability-to-pay principle in the energy transition of Swedish multifamily housing, and suggest that if low-investment energy retrofits are not sufficient for upcoming objectives and requirements, subsidies could be needed to compensate low-income tenants for the cost burden of extensive energy retrofitting. © 2022 The Author(s)

Place, publisher, year, edition, pages
Elsevier Ltd , 2022. Vol. 92, article id 102791
National Category
Construction Management
Identifiers
URN: urn:nbn:se:ri:diva-60152DOI: 10.1016/j.erss.2022.102791Scopus ID: 2-s2.0-85137010833OAI: oai:DiVA.org:ri-60152DiVA, id: diva2:1699940
Note

Funding details: Svenska Forskningsrådet Formas, 2017-01449; Funding text 1: The authors would like to thank the Swedish National Board of Housing, Building and Planning for their collaboration around this research. This work was supported by The Swedish Research Council for Environment, Agricultural Sciences and Spatial Planning (Formas) [grant number 2017-01449] within the project National Building-Specific Information (NBI). The authors have no conflicts of interest to declare.; Funding text 2: The authors would like to thank the Swedish National Board of Housing, Building and Planning for their collaboration around this research. This work was supported by The Swedish Research Council for Environment, Agricultural Sciences and Spatial Planning (Formas) [grant number 2017-01449 ] within the project National Building-Specific Information (NBI). The authors have no conflicts of interest to declare.

Available from: 2022-09-29 Created: 2022-09-29 Last updated: 2024-02-14Bibliographically approved

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von Platten, JennyMangold, MikaelJohansson, TimMjörnell, Kristina

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