BIDding on cities: Applying the Business Improvement District model for urban sustainability

Sammanfattning: There is a growing expectation in the field of sustainable development that cities are the most suitable scale for addressing global environmental issues, particularly through their ability to mobilize local actors. Business improvement districts (BIDs) are a form of public-private partnership (PPP) in cities typically established by associations of private actors that aim to generate value in communities by jointly investing in physical improvements and local services. The model is gaining attention in Sweden, with one BID established in the Sofielund neighborhood of Malmö currently integrating sustainable development concepts into its core strategy to experiment with solutions for reducing socioeconomic inequalities and the area’s environmental impacts. Since BID Sofielund is seeking to learn new methods for incorporating sustainability and because the nexus between BIDs and sustainability has not been adequately addressed in the academic literature, this research utilizes an exploratory approach in a multiple-case study design focusing on BID Sofielund and four reference cases to investigate how BIDs engage with sustainability through the projects and processes they carry out and develops potential explanations for why they might choose to do so. By plotting BID activities in a sustainability framework, this study found that BIDs contribute to sustainable development through strategies including providing a platform for collaborative governance, promoting energy efficiency in buildings, investing in capital improvement projects that enhance public spaces, and filling gaps in social service provision. The study identified multiple contributors to why BIDs engage in sustainability and assembled a general framework consisting of both internal and external drivers that must be considered to fully understand BID sustainability activities, however more research is needed. From an academic standpoint, the knowledge produced furthers the discussion on BIDs in a sustainability context and it provides practical value for BID practitioners as they seek to measure performance in new ways and enhance their effectiveness through sustainability-driven strategies.