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Green building, split-incentives and affordable rental housing policy

2019/10/24 by Stefen MacAskill, Rodney A. Stewart, Eduardo Roca +3 · 1 citation
Economics, Econometrics and Finance · Engineering · Psychology · #Facilities and Workplace Management #Housing Market and Economics #Sustainable Building Design and Assessment

paper · doi:10.1080/02673037.2019.1677861

openalex publication_date 2019/10/24 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28

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.

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