New article on the effectiveness of building retrofits under a subsidy scheme
Increasing the speed and depth of retrofits is essential to decarbonize the building sector. The new paper by SusTec's Dianne Hondeborg, Benedict Probst, Ivalin Petkov, and Christof Knoeri presents the effectiveness of retrofits under a Swiss subsidy scheme in canton St. Gallen.
Retrofitting buildings is crucial for climate and energy goals, but retrofits face speed and depth challenges. Governments use subsidies to accelerate deep retrofits, yet evidence on their effectiveness is limited.
We investigate retrofitting subsidies using econometric techniques and a unique dataset of 400 Swiss buildings over 11 years (19,000 observations). We analyze energy consumption reduction, the impact of subsidies on retrofit depth, and the correlation with subsidy amount.
Results show retrofits reduce energy use by 10-20%, subsidized and non-subsidized retrofits achieve similar savings, and higher subsidies correlate with 0.42 CHF/kWh energy reduction over 20 years. Our study emphasizes the need for policies enhancing retrofit depth and understanding variations in outcomes to improve effectiveness.
The article was co-authored by SusTec’s Dianne Hondeborg, Dr. Benedict Probst, Dr. Christof Knoeri, and SusTec alumnus DownloadDr. Ivalin Petkov. It is available open access Downloadhere.