A study on the Optimal Cost for Retrofit Dilapidated Dwellings Based on the Energy Efficiency Assistance Program of South Korea

The main purpose of the study is to identify an optimal level of subsidy for upgrading the energy efficiency of old houses, as well as to obtain numerical results indicating change in heating energy for building elements. There are various subsidy programs for low-income households; programs focused on house remodeling are critical, as these address aspects related to basic life necessities. Energy poverty has been defined as the inability to heat the home to a level where social and material needs are met. Only 20% of households suffering energy poverty have benefitted from remodeling services. Data was collected from the Eco-House Simulation Program, and subsequently subject to regression analysis and scenario testing. This enabled the identification of an optimal total subsidy amount, which ranges from 2,500 to 3,000 USD; this amount would allow for maximum policy effect. It was impossible to separate the retrofit cost by housing elements (e.g. wall improvements, floor improvements, etc.). It would be possible to distinguish between urban and rural area if original data were sorted into these categories. A future study could thus not only focus on the retrofit cost of specific each remodeling element, but could also compare the policy impact between urban and rural areas.