Boosting Investments in Buildings Energy Retrofit: The Role of Incentives

More than 40% of the EU building stock was built before 1960 and 90% before 1990. It is common wisdom that older buildings typically exhibit greater energy demand than new ones. The renovation of existing buildings is therefore a cornerstone in the reduction of energy consumption and relative CO2 emissions under the post-carbon city paradigm. In the present work, we analyze various energy retrofit strategies, evaluate their impact on buildings energy performance and determine their relative cost-benefit tradeoffs to address the multiple benefits of renovations and the financial barriers to their implementation and taking up. Aim of the paper is to identify cost-effective energy retrofit strategies which match technological advancements and knowledge in energy retrofitting with environmental needs and end-user’s behavior. To determine how far (and how much) it is optimal to push on retrofitting of existing buildings, we investigate the role of incentives and their impacts on private investment decisions.