Socially just energy renovations: how do low-income tenants in Europe perceive state support for rising rents?

Abstract

Extended abstract 7-060-26 Energy efficiency renovations have multiple benefits: they can reduce CO₂ emissions in the building sector by lowering energy demand for heating and cooling, decrease energy costs for residents, and enhance the quality of living spaces. However, such renovations may also lead to unintended negative consequences. Tenants may face rent increases following renovation measures. In the context of the current affordability crisis in the European housing sector, these increases can impose substantial burdens, especially on low-income tenants. Policies aimed at mitigating these effects and protecting affected groups are therefore increasingly discussed. Using survey data from eight European countries we examine how financial support for low-income tenants to offset rent increases following energy renovations is perceived by this group. We focus on the role of household vulnerability in shaping policy acceptability. Drawing on a multidimensional understanding of vulnerability (Adger, 2006), which has also been applied in energy research (Carley et al., 2018), we conceptualize vulnerability in terms of exposure to energy-inefficient housing conditions and limited capacity to cope with rent increase. We estimate regression models including different variables measuring household vulnerability such as the energy efficiency of the dwelling, financial resources, and “at risk” factors (e.g. being a single parent), as well as control variables such as political orientation. The results show that the policy is generally perceived positively, although acceptability varies significantly across countries. In all countries except Estonia and Italy, more than 50% of low-income tenants support the measure, with the highest levels observed in Great Britain and Finland. Policy acceptability is higher among tenants living in less energy-efficient dwellings and among those experiencing greater financial burden due to housing costs. In contrast, “at risk” factors are not significantly associated with policy acceptability. Moreover, social and environmental political orientations are positively associated with support for the policy, whereas conservative orientation is negatively associated. Tenants who are more directly exposed to energy inefficiency and report financial burdens tend to view financial support in the event of a rent increase more positively, indicating that they perceive the policy as supportive. Read the full abstract. Download presentation.