SPECIAL FEATURE
Housing accounts for a large share of CO 2 emissions and energy use
CO2 emissions (tons)
Energy use (MJ)
Residential direct
9%
11%
Residential indirect
14%
12%
Building construction
74%
71%
Other sectors
3%
6%
Source: Energy Efficiency Indicators (IER, 2021 [7]), Emission Factors database (IER, 2021 [8]), and OECD calculations
Could digitalization provide solutions to the housing crisis?
Digitalization has the potential to significantly alleviate the housing crisis in the developing world through several key mechanisms:
Cost Reduction: Technologies like 3D printing and prefabrication can drastically reduce construction costs and time. For example, 3D-printed homes can be built quickly and affordably, making housing more accessible. Improved Planning and Management: Digital tools such as Building Information Modeling and Geographic Information Systems can enhance urban planning and infrastructure management. These tools help in efficiently designing and managing housing projects, ensuring better use of resources and space. Enhanced Financing Options: Digital platforms can streamline the process of obtaining housing finance. Automated underwriting and digital mortgage platforms can make it easier for people in developing countries to access loans, reducing barriers to homeownership. Data-Driven Decision Making: The use of big data and artificial intelligence can help governments and organizations identify housing needs more accurately and allocate resources more effectively. This can lead to more targeted and efficient housing policies. Smart Homes and Energy Efficiency: Digital technologies can also improve the quality of housing by integrating smart home systems that enhance energy efficiency and reduce utility costs. This not only makes housing more affordable but also more sustainable.
A green revolution?
New technologies hold so much promise that everybody from Eurocrats to estate agents are speaking of a “green revolution in building.” But technology alone is not a silver bullet: A recent World Bank paper asks for innovative financing (see pages 6-9), long-term policy changes and new approaches from planning to implementation, arguing: “The greenest home built in suburbia is still more polluting than a classic urban house. As we embrace innovative construction technologies, let us not forget that housing is more than bricks and mortar.”
Photo: Swimsol
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