Energy Efficiency, CO<sub>2</sub> Emission Reduction, and Real Estate Investment in Northern Europe: Trends and Impact on Sustainability

Energy efficiency and CO<sub>2</sub> emission reduction are key objectives related to climate change mitigation, sustainable development, and energy resource management. In the Nordic context, energy consumption trends in both the residential and industrial sectors are closely linked to...

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Main Authors: Laima Okunevičiūtė Neverauskienė, Manuela Tvaronavičienė, Dominykas Linkevičius
Format: Article
Language:English
Published: MDPI AG 2025-04-01
Series:Buildings
Subjects:
Online Access:https://www.mdpi.com/2075-5309/15/7/1195
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author Laima Okunevičiūtė Neverauskienė
Manuela Tvaronavičienė
Dominykas Linkevičius
author_facet Laima Okunevičiūtė Neverauskienė
Manuela Tvaronavičienė
Dominykas Linkevičius
author_sort Laima Okunevičiūtė Neverauskienė
collection DOAJ
description Energy efficiency and CO<sub>2</sub> emission reduction are key objectives related to climate change mitigation, sustainable development, and energy resource management. In the Nordic context, energy consumption trends in both the residential and industrial sectors are closely linked to European Union policies, technological innovation, and real estate investments. In recent decades, the development and renovation of the real estate sector has become one of the most important factors determining changes in energy consumption, especially in residential buildings, which remain among the largest energy consumers and polluters. In this context, countries’ efforts to reduce CO<sub>2</sub> emissions and increase energy efficiency are inseparable from the real estate sector’s contribution to these processes, by promoting investments in building modernization and energy-saving technologies. However, the real estate sector remains a complex area where economic interests need to be reconciled with environmental objectives, especially in the context of EU strategies such as the Renovation Wave and the Energy Efficiency Directive. This article examines the links between real estate investment, energy efficiency, and CO<sub>2</sub> emission reduction, based on quantitative analysis, to assess how the development of the real estate sector and EU policy measures affect sustainable development in Northern Europe. This study uses advanced quantitative methods, including a panel regression model, which helps better reveal the long-term dependencies between investment, energy consumption, and emissions dynamics. This article highlights the importance of the real estate sector in implementing sustainability policies and suggests strategic solutions that can help reconcile economic and environmental priorities.
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spelling doaj-art-1306d1dd3fee4584bf993c75852e1e9e2025-08-20T02:09:11ZengMDPI AGBuildings2075-53092025-04-01157119510.3390/buildings15071195Energy Efficiency, CO<sub>2</sub> Emission Reduction, and Real Estate Investment in Northern Europe: Trends and Impact on SustainabilityLaima Okunevičiūtė Neverauskienė0Manuela Tvaronavičienė1Dominykas Linkevičius2Department of Economics Engineering, Faculty of Business Management, Vilnius Gediminas Technical University, Saulėtekio al. 11, LT-10223 Vilnius, LithuaniaDepartment of Business Technologies and Entrepreneurship, Faculty of Business Management, Vilnius Gediminas Technical University, Saulėtekio al. 11, LT-10223 Vilnius, LithuaniaDepartment of Economics Engineering, Faculty of Business Management, Vilnius Gediminas Technical University, Saulėtekio al. 11, LT-10223 Vilnius, LithuaniaEnergy efficiency and CO<sub>2</sub> emission reduction are key objectives related to climate change mitigation, sustainable development, and energy resource management. In the Nordic context, energy consumption trends in both the residential and industrial sectors are closely linked to European Union policies, technological innovation, and real estate investments. In recent decades, the development and renovation of the real estate sector has become one of the most important factors determining changes in energy consumption, especially in residential buildings, which remain among the largest energy consumers and polluters. In this context, countries’ efforts to reduce CO<sub>2</sub> emissions and increase energy efficiency are inseparable from the real estate sector’s contribution to these processes, by promoting investments in building modernization and energy-saving technologies. However, the real estate sector remains a complex area where economic interests need to be reconciled with environmental objectives, especially in the context of EU strategies such as the Renovation Wave and the Energy Efficiency Directive. This article examines the links between real estate investment, energy efficiency, and CO<sub>2</sub> emission reduction, based on quantitative analysis, to assess how the development of the real estate sector and EU policy measures affect sustainable development in Northern Europe. This study uses advanced quantitative methods, including a panel regression model, which helps better reveal the long-term dependencies between investment, energy consumption, and emissions dynamics. This article highlights the importance of the real estate sector in implementing sustainability policies and suggests strategic solutions that can help reconcile economic and environmental priorities.https://www.mdpi.com/2075-5309/15/7/1195energyreal estateinvestments
spellingShingle Laima Okunevičiūtė Neverauskienė
Manuela Tvaronavičienė
Dominykas Linkevičius
Energy Efficiency, CO<sub>2</sub> Emission Reduction, and Real Estate Investment in Northern Europe: Trends and Impact on Sustainability
Buildings
energy
real estate
investments
title Energy Efficiency, CO<sub>2</sub> Emission Reduction, and Real Estate Investment in Northern Europe: Trends and Impact on Sustainability
title_full Energy Efficiency, CO<sub>2</sub> Emission Reduction, and Real Estate Investment in Northern Europe: Trends and Impact on Sustainability
title_fullStr Energy Efficiency, CO<sub>2</sub> Emission Reduction, and Real Estate Investment in Northern Europe: Trends and Impact on Sustainability
title_full_unstemmed Energy Efficiency, CO<sub>2</sub> Emission Reduction, and Real Estate Investment in Northern Europe: Trends and Impact on Sustainability
title_short Energy Efficiency, CO<sub>2</sub> Emission Reduction, and Real Estate Investment in Northern Europe: Trends and Impact on Sustainability
title_sort energy efficiency co sub 2 sub emission reduction and real estate investment in northern europe trends and impact on sustainability
topic energy
real estate
investments
url https://www.mdpi.com/2075-5309/15/7/1195
work_keys_str_mv AT laimaokuneviciuteneverauskiene energyefficiencycosub2subemissionreductionandrealestateinvestmentinnortherneuropetrendsandimpactonsustainability
AT manuelatvaronaviciene energyefficiencycosub2subemissionreductionandrealestateinvestmentinnortherneuropetrendsandimpactonsustainability
AT dominykaslinkevicius energyefficiencycosub2subemissionreductionandrealestateinvestmentinnortherneuropetrendsandimpactonsustainability