Carbon reduction potential of housing retrofits: Evidence from China

Carbon emissions have become a major contributor to global climate change, with the building sector representing one-third of the global energy demand, and the residential sector accounting for 70 % of final energy demand worldwide. The energy consumption for building cooling has grown rapidly in recent years. Housing retrofits have shown potential in improving building energy efficiency and thus aligning with objectives for energy-saving and carbon emissions reduction in the residential sector. Based on survey data from 28 provinces in China, this study estimates the impacts of housing retrofits on the building energy consumption for air conditioners, as well as impacts on the resulting carbon emissions. Employing Endogenous switching regression to mitigate self-selection bias and the consequent endogeneity problem, the analysis reveals that housing retrofits can reduce building energy consumption and consequent carbon emissions. Furthermore, factors including household characteristics, building attributes and geographic location can influence both residential energy consumption and carbon emissions. In addition, low-income households, families with children and those living in self-owned houses can benefit the most from housing retrofits. This study also offers recommendations to reducing household energy consumption and carbon emissions through improved renovation practices. These insights are instrumental for policymakers in identifying targeted policy objectives across diverse demographic groups. The findings hold relevance for other developing countries with large amounts of inefficient housing stock during rapid urbanization, and those prone to global warming, aiding their pursuit of Sustainable Development Goals.