Drivers of housing developers’ perception on future construction reuse material premium for wood

Abstract

The construction sector has significant environmental footprints due to its extensive con- sumption of resources, greenhouse gas emissions, and waste generation. Strategies like ex- panding the reuse of construction materials may contribute towards the sector’s environmen- tal objectives. Enhancing the reuse of wood, a material associated with low environmental impacts, may further improve the sector’s environmental outcomes. However, at this point, reuse of wood materials is marginal. Understanding the willingness of market agents to embark on such use will aid in policy and market development. This study examines the behavioral and institutional factors that affect the premium of housing developers for the use of reused wood materials in the construction of future residential and leisure buildings. It is based on a novel concept known as the Construction Reuse Material Premium (CRP). A conceptual model is developed from a comprehensive theoretical framework based on both Theory of Planned Behavior and Institutional Theory. Data were collected through a cross- sectional survey in fall 2022, targeting Norwegian housing development companies. Survey data were analyzed using partial least squares structural equation modeling (PLS-SEM). The findings reveal that housing developers’ attitudes, regulatory and market conditions, and company size negatively influence expected CRP, suggesting developers foresee a greater shift in their willingness to accept costs for reused materials compared to consumer willing- ness to pay. In contrast, stakeholder influence and positive subjective norms toward reuse are associated with a more favorable market outlook for buildings using reused materials.