Energy retrofit as an answer to public health costs of fuel poverty in Lisbon social housing

Social costs derived by fuel poverty are often not considered in policy decision making, leading to the exclusion of vulnerable groups from subsidy and further degradation of old inefficient housing stock. Low-income housing renovation may result in unprofitable under conventional methods due to multiple factors such as the low price of energy of subsidised utility tariffs, the below-average energy consumption, and their inability to invest. This paper analyses policy to public housing retrofitting considering the social costs derived by fuel poverty, a situation of vulnerability driven by a combination of low income and poor living conditions regarding energy consumption and thermal comfort. Enhanced comfort conditions positively affect individuals' health and social life, translating into economic relief for the National Healthcare Service. The search to reduce fuel poverty challenges a paradigm shift in investment in public housing renovation. It could receive additional support from the monetisation of the health benefits derived by building retrofitting. The results of this paper offer local authorities the critical analysis and evaluation framework when it comes to an understanding the policy impact of building retrofit on energy consumption, thermal comfort and health, prioritise the renovations of the public housing stock and adequately allocate public funding.

Automated summary

This paper examines the social costs associated with fuel poverty and the importance of considering these costs in policy decisions related to public housing retrofitting. Enhancing comfort conditions through renovations can have positive impacts on health and social well-being, leading to economic relief for healthcare services. The study suggests a need for a paradigm shift in investment towards public housing renovation, with potential support from monetizing the health benefits of building retrofitting.