Does the UK built environment sector have the institutional capacity to deliver sustainable development?

Abstract

Globally, the construction sector has to reduce its environmental impact. Institutional innovation is necessary to achieve reductions at the required levels. Robust and rigorous evaluations of the industry's capacity to bring about such innovation are absent, although there is a plethora of policy incentives, and more frequently obligations, for the industry to take action. This paper evaluates the UK construction industry's institutional capacity to innovate to become more sustainable. The industry's current impact on the environment is first illustrated. The second section argues the case for institutional innovation to meet the UK Government's targets, and reviews the policy implementation and institutional innovation literature. A framework that is later used to evaluate the UK construction industry's institutional capacity to deliver sustainability concludes this section. The main body of the paper focuses on this evaluation by using secondary data published by key government departments and industry bodies.. The conclusions identify the policy framework as the strongest aspect of the industry, whilst demonstrating that in other areas, i.e. content, capacity, commitment, and clients and collaborations, there is much room to develop institutional capacity. The fragmented industry structure and the current state of the economy are identified to be the main barriers to development.

Keywords:

• Built environment
• capacity
• institutional innovation
• sustainable development

Notes

The UN's International Standard Industrial Classification categorizes construction, real estate activities and professional, scientific and technical activities, which include architectural and technical activities, separately. Sustainable development can only be delivered through a close collaboration of these three industries and their sub-sectors. Therefore, this article uses the term ‘built environment sector(s)’ to refer to a conglomeration of these industries.

A detailed commentary on the impact of the activities that relate to the whole life cycle of a building is beyond the scope of this article. Interested readers are invited to consult the large, and growing, body of literature on the subject.

At the drafting stage of the Bill, Department for Environment Food and Rural Affairs (DEFRA) was responsible for climate change mitigation policy. Office for Climate Change (OCC) was set up in September 2006 to work across the relevant Government Departments to support analytical work on climate change and the development of climate change policy and strategy.