Politická ekonomie 2025, 73(6):926-947 | DOI: 10.18267/j.polek.1468

Sustainable Buildings and Subsidy Policy: Challenging the Energy Transition Context

©árka Tomanová, Marian Piecha
©árka Tomanová (corresponding author), Faculty of Economics, Prague University of Business and Economics, Czech Republic
Marian Piecha, Ministry of Trade and Industry; Faculty of Economics, Prague University of Business and Economics, Czech Republic

Reduction in energy demand, application of circular economy principles and implementation of sustainable policies are the key pillars of sustainable development. Buildings and the construction sector are significant consumers of both energy and resources. Therefore, a crucial policy objective is to mediate investments in sustainable renovations to make buildings more energy-efficient, less water-reliant and constructed with less waste. The EU Taxonomy, the bible of sustainability, sets the technical criteria for defining sustainable investments. However, do the criteria introduce a new approach, or is it more of another European attempt to improve the governance of sustainability? This article evaluates the impact of the EU Taxonomy regulation on Czech subsidy policy. It uses a comparative analysis of building renovation programmes with a focus on energy efficiency conditions. The article presents a correlation model and mathematical formula for calculating the impact rate. This can be widely used to evaluate financial tools in terms of sustainability. The study reveals that building renovation programmes have made significant progress in reducing the energy demand and managing the waste streams during the construction phase. However, progress in water management has been limited. The impact of sustainability policies on investments in building renovations is noticeable. Moreover, the level of technical detail of European policies is constantly increasing, and this trend is likely to continue. This will have a further effect on national public administration and budgets.

Keywords: EU Taxonomy, subsidy, sustainability, building renovations, regulatory impact
JEL classification: E61, L74, Q56

Received: February 11, 2024; Revised: September 30, 2024; Accepted: October 21, 2024; Published: December 9, 2025  Show citation

ACS AIP APA ASA Harvard Chicago Chicago Notes IEEE ISO690 MLA NLM Turabian Vancouver
Tomanová, ©., & Piecha, M. (2025). Sustainable Buildings and Subsidy Policy: Challenging the Energy Transition Context. Politická ekonomie, 73(6), 926-947. doi: 10.18267/j.polek.1468
Download citation
  • BibTeX (.bib)
  • Bookends (.ris)
  • EasyBib (.ris)
  • EndNote (.enw)
  • EndNote 8 (.xml)
  • ISI WoS (.isi)
  • Medlars (.medlars)
  • Mendeley (.ris)
  • MODS (.xml)
  • Papers (.ris)
  • RefWorks (.txt)
  • RefManager (.ris)
  • RIS (.ris)
  • MS Word (.xml)
  • Zotero (.ris)
    • Open full article

    References

    1. Act no. 383/2012 Coll., on the Conditions for Trading Greenhouse Gas Emission Allowances. [Retrieved 2022-11-03.] In: Zákony pro lidi [online]. AION CS, 2010-2023. Available at: https://www.zakonyprolidi.cz/cs/2012-383
    2. Act no. 406/2000 Coll., on Energy Management. [Retrieved 2022-10-12.] In: Zákony pro lidi [online]. AION CS, 2010-2023. Available at: https://www.zakonyprolidi.cz/cs/2000-406
    3. Alessi, L., Battiston, S. (2022). Two sides of the same coin: Green Taxonomy alignment versus transition risk in financial portfolios. International Review of Financial Analysis, 84, 102319. https://doi.org/10.1016/j.irfa.2022.102319 Go to original source...
    4. Commission of the European Communities (2008). Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions. COM/2008/0030 final. [Retrieved 2022-11-03.] In: Official Journal of the European Union [online]. Available at: https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52008DC0030
    5. Čermáková, K., Hromada, E., Bednář, O., et al. (2023). Real estate market at a crossroad - era of affordable housing is gone. International Journal of Economic Sciences, 12(1), 55-78. https://doi.org/10.52950/ES.2023.12.1.003 Go to original source...
    6. EC (2012). Communication from the commission to the European Parliament and the Council on Strategy for the sustainable competitiveness of the construction sector and its enterprises COM/2012/0433 final. [Retrieved 2022-11-07.] In: Official Journal of the European Union [online]. Brussels: European Commission. Available at: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52012DC0433
    7. EC (2014). Communication from the Commission to the European Parliament, the Council, The European Economic and Social Committee of the Regions on resource energy efficiency opportunities in the building sector COM/2014/0445 final. [Retrieved 2022-11-07.] In: Official Journal of the European Union [online]. Available at: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex:52014DC0445
    8. EC (2019). Clean Energy for All Europeans. Luxembourg: Publication Office of the European Union. ISBN 978-92-79-99835-5.
    9. EC (2021). Commission Delegated Regulation (EU) 2021/2139 of 4 June 2021 supplementing Regulation (EU) 2020/852 of the European Parliament and of the Council by establishing the technical screening criteria for determining the conditions under which an economic activity qualifies as contributing substantially to climate change mitigation or climate change adaptation and for determining whether that economic activity causes no significant harm to any of the other environmental objectives. [Retrieved 2022-07-15.] In: Official Journal of the European Union [online]. Available at: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32021R2139&qid=1760447845832
    10. EP and The Council (2008). Regulation (EU) 2008/98 of the European Parliament and of the Council of 19. November 2008 on waste and repealing certain Directives. [Retrieved 2022-12-01.] In: Official Journal of the European Union [online]. Available at: https://eur-lex.europa.eu/eli/dir/2008/98/oj/eng
    11. EP and The Council (2020). Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 establishing a framework to facilitate sustainable investments and amending Regulation (EU) 2019/2088. [Retrieved 2022-07-15.] In: Official Journal of the European Union [online]. Available at: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32020R0852&qid=1760447674617
    12. EP and The Council (2021). Regulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021 establishing the Recovery and Resilience Facility. [Retrieved 2022-07-15.] In: Official Journal of the European Union [online]. Available at: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32021R0241&qid=1760447759767
    13. EP and The Council (2021). Regulation (EU) 2021/1060 of the European Parliament and of the Council of 24 June 2021 laying down common provisions on the European Regional Development Fund, the European Social Fund Plus, the Cohesion Fund, the Just Transition Fund
    14. and the European Maritime, Fisheries and Aquaculture Fund and financial rules for those and for the Asylum, Migration and Integration Fund, the Internal Security Fund and the Instrument for Financial Support for Border Management and Visa Policy. [Retrieved 2022-07-20.] In: Official Journal of the European Union [online]. Available at: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32021R1060&qid=1760447799104
    15. Ewing, J., Ross, M., Pickle, A., et al. (2022). Pathways to Net-Zero for the US Energy Transition. Durham: Nicholas Institute for Energy, Environment & Sustainability.
    16. Hendl, J. (2023). Kvalitativní výzkum: Základní metody a aplikace. 5th ed. Prague: Portál. ISBN 978-80-262-1968-2.
    17. Hondeborg, D., Probst, B., Petkov, I., et al. (2023). The effectiveness of building retrofits under a subsidy scheme: Empirical evidence from Switzerland. Energy Policy, 180, 113680. https://doi.org/10.1016/j.enpol.2023.113680 Go to original source...
    18. Huang, M.-Q., H., Lin, R.-J. (2022). Evolutionary game analysis of energy-saving renovations of existing rural residential buildings from the perspective of stakeholders. Sustainability, 14(9), https://doi.org/10.3390/su14095723 Go to original source...
    19. Husiev, O., Campos-Celador, A., Álvarez-Sanz M., et al. (2023). Why is district renovation not leading the race? Critical assessment of building renovation potential under different intervention levels. Energy and Buildings, 295, 113288. https://doi.org/10.1016/j.enbuild.2023.113288 Go to original source...
    20. Ibekwe, K. I., Ohenhen, P. E., Chidolue, O., et al. (2024). Microgrid systems in U.S. energy infrastructure: A comprehensive review: Exploring decentralized energy solutions, their benefits, and challenges in regional implementation. World Journal of Advanced Research and Reviews, 21(1), 973-987. https://doi.org/10.30574/wjarr.2024.21.1.0112 Go to original source...
    21. Jourdan-Andersen B., Brunt A. S. (2022). State Aid (CEEAG) and Taxonomy: Two Novel Pieces of Legislation at the Heart of Europe's Green Transition. European State Aid Law Quarterly, 21(3), 266-277. https://doi.org/10.21552/estal/2022/3/6 Go to original source...
    22. Kuhlman, T., Farrington, J. (2010). What is sustainability? Sustainability, 2(11), 3436-3448. http://doi.org/10.3390/su2113436 Go to original source...
    23. Lucarelli, C., Mazzoli, C., Rancan, M., et al. (2023). The Impact of EU Taxonomy on Corporate Investments. Journal of Financial Management, Markets and Institutions, 11(1), 2350004. https://doi.org/10.1142/S2282717X23500044 Go to original source...
    24. Mahmood A., Ugur K. P., Zahoor A., et al. (2024). Fintech, natural resources management, green energy transition, and ecological footprint: Empirical insights from EU countries. Resources Policy, 92, 104972. https://doi.org/10.1016/j.resourpol.2024.104972 Go to original source...
    25. Ministry of the Environment of the Czech Republic (2015). Rules for applicants and beneficiaries of support from Operational Programme Environment 2014-2020 (Issue 1). Available at: https://2014-2020.opzp.cz/dokumenty/detail/?id=674
    26. Ministry of Trade and Industry of the Czech Republic (2022). Rules for applicants and beneficiaries of support from Operational Programme Technology and Applications for Competitiveness 2021-2027 (Issue 1). Available at: https://apiagentura.gov.cz/cs/metodika-op-tak/
    27. Norang, H., Støre-Valen, M., Kvale, N., et al. (2023). Norwegian stakeholder's attitudes towards EU taxonomy. Facilities, 41(5/6), 407-433. https://doi.org/10.1108/F-03-2022-0051 Go to original source...
    28. Pata, U. K., Kartal, M. T., Depren, S. K. (2024). The role of Information and Communication Technologies and Energy-Related Research and Development Investments in Energy Transition: Evidence from the United States of America by Machine Learning Algorithm. Energy Technology, 12(5), 2301199. https://doi.org/10.1002/ente.202301199 Go to original source...
    29. Pata, U. K., Karlilar, S., Kartal M. T. (2023). On the road to sustainable development: the role of ICT and R&D investments in renewable and nuclear energy on energy transition in Germany. Clean Technologies and Environmental Policy, 26, 2323-2335. https://doi.org/10.1007/s10098-023-02677-y Go to original source...
    30. Solow, R. (1993). An almost practical step toward sustainability. Resources Policy, 19(3), 162-172. Go to original source...
    31. Wang, J., Du, G., Liu, M. (2022). Spatiotemporal characteristics and influencing factors of carbon emissions from civil buildings: Evidence from urban China. PLoS ONE, 17(8). https://doi.org/10.1371/journal.pone.0272295 Go to original source...
    32. WCED (1987). Our Common Future. New York: United Nations: World Commission on Environment and Development.
    33. Zubíková, A., Veselá, K., Smolak, P. (2023). Evaluation of the Antivirus A Programme in the Czech Republic During the COVID-19 Pandemic. International Journal of Economic Sciences, 12(1), 161-188, https://doi.org/10.52950/ES.2023.12.1.009 Go to original source...

    This is an open access article distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY NC ND 4.0), which permits non-comercial use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.


    Return to the content