Business from Sustainability: Drivers for Energy Efficient Housing

Minna Halme, Jyri Nieminen, Esa Nykänen, Leena Sarvaranta, Antti Savonen

    Research output: Book/ReportReport

    Abstract

    Why is the market interest in energy efficient houses still low? Is it because consumers do not want to pay a higher initial investment cost? Are consumers interested or aware of energy related issues? Are the constructors unwilling to push these products to the market in a situation where price seems to be the only source of competitive advantage? In the last 15-20 years, a number of projects have been carried out aiming at energy-efficient and environmentally friendly housing. There is a wide range of technologies and concepts that have been tested in monitoring projects. Technological possibilities to reduce a building's energy consumption have been available for a long time. Also, the costs of energy efficiency have been proved to be almost negligible. Despite the existing vast amount of information, no clear market change has happened. The scope of a low-energy building is to achieve comfortable, healthy and safe indoor climate. The construction is based on simple and well performing materials, structures and building services systems that fulfil the requirements set for the building. Energy efficient housing would offer many individual level benefits, and in order to assess them one should have a long-term perspective. As heating accounts for a majority of the life cycle costs of a house, energy efficiency means substantial cost savings. However, up to now most homebuilders are not focused on energy efficiency. There is not a single barrier that keeps energy-efficient housing from taking off. A whole range of issues has to be considered. Commercialisation of energy efficient single-family houses comes close to the problems of commercialising any environmentally sustainable product. They come in conflict with the current industry structures, organisations and institutions and with the general behaviour of different, related actors. In this situation, special measures are needed to promote commercialisation. The transition to sustainability needs to be managed. Earlier research findings on energy efficient building, conducted by VTT, are now complemented by this study. We have identified major trends paving the way towards business from sustainability. Our focus was on three strategic issues:1. Demand and supply of niche products, i.e. energy efficient single-family houses; 2. Drivers for business potential and opportunities; 3. Management of transition to environmentally sustainable business.
    Original languageEnglish
    Place of PublicationEspoo
    PublisherVTT Technical Research Centre of Finland
    Number of pages68
    ISBN (Electronic)951-38-6742-0
    ISBN (Print)951-38-6741-2
    Publication statusPublished - 2005
    MoE publication typeNot Eligible

    Publication series

    SeriesVTT Tiedotteita - Meddelanden - Research Notes
    Number2310
    ISSN1235-0605

    Fingerprint

    Sustainable development
    Energy efficiency
    Costs
    Industry
    Life cycle
    Energy utilization
    Heating
    Monitoring

    Keywords

    • single family houses
    • energy efficiency
    • energy consumption
    • energy conservation
    • environmentally sustainable business
    • eco-efficient construction
    • regional construction
    • strategic niche management
    • life-cycle costs
    • business opportunities

    Cite this

    Halme, M., Nieminen, J., Nykänen, E., Sarvaranta, L., & Savonen, A. (2005). Business from Sustainability: Drivers for Energy Efficient Housing. Espoo: VTT Technical Research Centre of Finland. VTT Tiedotteita - Meddelanden - Research Notes, No. 2310
    Halme, Minna ; Nieminen, Jyri ; Nykänen, Esa ; Sarvaranta, Leena ; Savonen, Antti. / Business from Sustainability : Drivers for Energy Efficient Housing. Espoo : VTT Technical Research Centre of Finland, 2005. 68 p. (VTT Tiedotteita - Meddelanden - Research Notes; No. 2310).
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    Halme, M, Nieminen, J, Nykänen, E, Sarvaranta, L & Savonen, A 2005, Business from Sustainability: Drivers for Energy Efficient Housing. VTT Tiedotteita - Meddelanden - Research Notes, no. 2310, VTT Technical Research Centre of Finland, Espoo.

    Business from Sustainability : Drivers for Energy Efficient Housing. / Halme, Minna; Nieminen, Jyri; Nykänen, Esa; Sarvaranta, Leena; Savonen, Antti.

    Espoo : VTT Technical Research Centre of Finland, 2005. 68 p. (VTT Tiedotteita - Meddelanden - Research Notes; No. 2310).

    Research output: Book/ReportReport

    TY - BOOK

    T1 - Business from Sustainability

    T2 - Drivers for Energy Efficient Housing

    AU - Halme, Minna

    AU - Nieminen, Jyri

    AU - Nykänen, Esa

    AU - Sarvaranta, Leena

    AU - Savonen, Antti

    N1 - Project code: R5SU01301

    PY - 2005

    Y1 - 2005

    N2 - Why is the market interest in energy efficient houses still low? Is it because consumers do not want to pay a higher initial investment cost? Are consumers interested or aware of energy related issues? Are the constructors unwilling to push these products to the market in a situation where price seems to be the only source of competitive advantage? In the last 15-20 years, a number of projects have been carried out aiming at energy-efficient and environmentally friendly housing. There is a wide range of technologies and concepts that have been tested in monitoring projects. Technological possibilities to reduce a building's energy consumption have been available for a long time. Also, the costs of energy efficiency have been proved to be almost negligible. Despite the existing vast amount of information, no clear market change has happened. The scope of a low-energy building is to achieve comfortable, healthy and safe indoor climate. The construction is based on simple and well performing materials, structures and building services systems that fulfil the requirements set for the building. Energy efficient housing would offer many individual level benefits, and in order to assess them one should have a long-term perspective. As heating accounts for a majority of the life cycle costs of a house, energy efficiency means substantial cost savings. However, up to now most homebuilders are not focused on energy efficiency. There is not a single barrier that keeps energy-efficient housing from taking off. A whole range of issues has to be considered. Commercialisation of energy efficient single-family houses comes close to the problems of commercialising any environmentally sustainable product. They come in conflict with the current industry structures, organisations and institutions and with the general behaviour of different, related actors. In this situation, special measures are needed to promote commercialisation. The transition to sustainability needs to be managed. Earlier research findings on energy efficient building, conducted by VTT, are now complemented by this study. We have identified major trends paving the way towards business from sustainability. Our focus was on three strategic issues:1. Demand and supply of niche products, i.e. energy efficient single-family houses; 2. Drivers for business potential and opportunities; 3. Management of transition to environmentally sustainable business.

    AB - Why is the market interest in energy efficient houses still low? Is it because consumers do not want to pay a higher initial investment cost? Are consumers interested or aware of energy related issues? Are the constructors unwilling to push these products to the market in a situation where price seems to be the only source of competitive advantage? In the last 15-20 years, a number of projects have been carried out aiming at energy-efficient and environmentally friendly housing. There is a wide range of technologies and concepts that have been tested in monitoring projects. Technological possibilities to reduce a building's energy consumption have been available for a long time. Also, the costs of energy efficiency have been proved to be almost negligible. Despite the existing vast amount of information, no clear market change has happened. The scope of a low-energy building is to achieve comfortable, healthy and safe indoor climate. The construction is based on simple and well performing materials, structures and building services systems that fulfil the requirements set for the building. Energy efficient housing would offer many individual level benefits, and in order to assess them one should have a long-term perspective. As heating accounts for a majority of the life cycle costs of a house, energy efficiency means substantial cost savings. However, up to now most homebuilders are not focused on energy efficiency. There is not a single barrier that keeps energy-efficient housing from taking off. A whole range of issues has to be considered. Commercialisation of energy efficient single-family houses comes close to the problems of commercialising any environmentally sustainable product. They come in conflict with the current industry structures, organisations and institutions and with the general behaviour of different, related actors. In this situation, special measures are needed to promote commercialisation. The transition to sustainability needs to be managed. Earlier research findings on energy efficient building, conducted by VTT, are now complemented by this study. We have identified major trends paving the way towards business from sustainability. Our focus was on three strategic issues:1. Demand and supply of niche products, i.e. energy efficient single-family houses; 2. Drivers for business potential and opportunities; 3. Management of transition to environmentally sustainable business.

    KW - single family houses

    KW - energy efficiency

    KW - energy consumption

    KW - energy conservation

    KW - environmentally sustainable business

    KW - eco-efficient construction

    KW - regional construction

    KW - strategic niche management

    KW - life-cycle costs

    KW - business opportunities

    M3 - Report

    SN - 951-38-6741-2

    T3 - VTT Tiedotteita - Meddelanden - Research Notes

    BT - Business from Sustainability

    PB - VTT Technical Research Centre of Finland

    CY - Espoo

    ER -

    Halme M, Nieminen J, Nykänen E, Sarvaranta L, Savonen A. Business from Sustainability: Drivers for Energy Efficient Housing. Espoo: VTT Technical Research Centre of Finland, 2005. 68 p. (VTT Tiedotteita - Meddelanden - Research Notes; No. 2310).