Business model innovation for green urban infrastructure

Abstract

Increasing population density, air pollution, and climate change put pressure on urban areas. Green infrastructure (GI) is increasingly recognised as a means to address these issues. However, piecemeal and asset-focused delivery, can limit the realisation of potential benefits. The vision for a comprehensive GI network which functions as a true interconnected infrastructure system, is one delivered at city-scale with an overarching strategic plan. Existing approaches are inadequate to deliver this, due to the lack of effective business models to join up stakeholders and value streams. Using a case study of Newcastle upon Tyne, UK, this thesis shows that new and innovative business models (plans for how a GI system is delivered, who uses it and how it is financed and managed) are needed to enable the delivery of a city-scale GI vision. Effective business models for collaborative GI delivery will be where values (derived from benefit evaluation), stakeholders, and policy context intersect. The value of GI is its environmental, financial and social benefits to humans. Testing evaluation approaches finds that values should be weighted according to relevance, and that functionality across the whole system should be considered. The policy context informs the power and governance structures that underpin GI delivery. A power relationship analysis is used to identify key enablers, opportunities and barriers. In particular, local plans and policies have the greatest potential to support GI delivery demonstrating the need to create a GI strategy at city-scale. Stakeholders may supply or benefit from the GI, or both, and this circular relationship is a key opportunity for GI delivery. Where stakeholder interests intersect with GI values, the value proposition can be found; where they intersect with the policy context will be the power-holders and governance bodies needed to support GI delivery. Where the policy and values overlap are the key drivers for the project. This research found that working in the value-stakeholder-policy intersection, developing business models that use collaborative co-production approaches, provides the best opportunity to achieve the vision for an effective, interconnected and strategically delivered GI system.