Financial Incentives to Energy Saving in the Housing Sector of Ukraine

Abstract

FINANCIAL INCENTIVES TO ENERGY SAVING IN THE HOUSING SECTOR OF UKRAINE ФІНАНСОВІ СТИМУЛИ ДО ЕНЕРГОЗБЕРЕЖЕННЯ В ЖИТЛОВОМУ СЕКТОРІ УКРАЇНИ Urgency of the research. The problems of energy efficiency and conservation are priorities in Ukraine owing to inefficient energy policy of the state. Target setting. Residential sector in Ukraine is the largest consumer of natural gas and requires significant investment in thermo-modernization of housing. This fact leads to necessity of finding ways to enhance its energy efficiency. Actual scientific researches and issues analysis. The problems of energy conservation and energy efficiency are the subject of research of following scientists S.

Evaluation of financial incentives for green buildings in Canadian landscape

“… Barrier/Anti-incentive Description Ref. Split incentives Particularly important in rental housings where interests of two parties conflict and neither the landlord (due to low ROI) nor the tenant (high initial costs) wants to invest in energy efficiency upgrade [ 119 , [196] , [197] , [198] ] Weak incentives Lack of attractive amount of incentive and connection between the government budget and the energy target needed to be achieved by FIs [ 9 , 11 , 197 , 199 ] Time of implementation Application of FIs at wrong time [ 200 ] Negative impacts of FIs interaction Mitigating impacts are negative interaction between two policy instruments that result in reduced savings [ [201] , [202] , [203] , [204] ] Behavioral impacts Low priority towards energy efficiency (Low resource consumption culture present in most developed countries makes it difficult for FIs to be successful) Free riders (Free-riders are consumers who would have performed energy upgrade regardless of introduction of FIs.) Non-takers (Non-takers are consumers who do not perform energy upgrade even with the introduction of FIs) Rebound effect (Rebound effect results in less energy savings compared to expected due to introduction of FIs and is a source of energy efficiency gap) [ 11 , 21 , 145 , 148 , 163 , 169 , 175 , 191 , 199 ] Other Barriers Tax exemptions High initial i...…”

“…The energy use behavior and preferences of stakeholders also impact the effectiveness of FIs [ 98 ]. For example, a low priority may be given to energy efficiency when energy is low priced, resulting in a lower effectiveness of FIs [ 191 , 199 ]. Similarly, some adopters may prefer tax credit over interest-free loans [ 98 ].…”

“…In addition to above, researchers have also identified other barriers impacting effectiveness. These include: provision of tax exemptions [ 197 ], high initial investments [ 191 ], long payback periods [ 199 ], transaction costs (indirect costs) [ 218 ], limited incentives for large buildings [ 45 ], lack of information [ 9 , 11 , 191 , 205 ] and technical expertise [ 205 , 206 ].…”