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In general, European Union Member States attribute great importance to the building sector in reducing their greenhouse gas emissions as part of their climate policy strategies. The present study is aimed at studying what happens if decision-makers do not take any prominent measures to ensure that the building sector realizes more efficient performance. The current European tendencies indicate that the most common approach is to attempt to renovate the existing building stock. However, this is not always the best solution. In Central and Eastern European countries, such as Hungary, the greatest problem encountered in renovations is the outdated heating and electricity supply of the old buildings. Many experts are convinced that these buildings should be demolished now and replaced with new ones in order to achieve more effective performance. This study, besides the environmental matters presents a climate policy-related economic evaluation which strengthens the latter opinion. The purpose of this novel cost effectiveness analysis is to examine the long-term viability of these two approaches (retrofitting strategy vs. the building of new houses) from the aspect of both environmental conformity (climate friendliness) and sustainable economics between 2020 and 2030.

Climate policy cost-benefit model application for successful Central European building retrofitting programs—A Hungarian case study