Innovative Policy Schemes to Promote Renovation of Multi-Flat Residential Buildings and Address the Problems of Energy Poverty of Aging Societies in Former Socialist Countries

Abstract

In former socialist countries, urban districts having the lowest building and insulation quality and the highest district heat consumption overlap with low-income and older households, creating a problem of energy poverty and a significant barrier to renovation of multi-flat buildings. Thus, the main challenge centers on fuel poverty in an aging society. This paper analyzes the main barriers to renovation of multi-flat buildings and assesses policies and measures to promote renovation of multi-flat buildings in terms of overcoming these barriers in former socialist countries which are currently EU Member States. Furthermore, it presents a new conceptual framework for developing innovative policies and schemes to promote renovation of multi-flat buildings in the face of the renovation barriers outlined above. The Energy Company Obligation (ECO) model or on-bill financing models can be modified and applied to renovation of multi-flat buildings, based on the UK example. Higher payments for utility bills can be shared among households living in multi-flat buildings that require renovation. As in the case of subsidies for communal services, life-line tariffs can be applied to pay for Energy Company Obligation services. This enables sharing the costs of renovation among apartment owners having different incomes and addresses the principle of social justice.