Reducing energy poverty in deprived regions or supporting new developments in metropolitan suburbs? Regional differences in the use of subsidies for home energy efficiency renovations

This paper contributes to existing research on home energy efficiency renovations by analysing the extent to which regional differences in the distribution of subsidies for renovations are related to geographical and socioeconomic factors, by analysing statistical data for districts in the Czech Republic. The novelty of this study lies in the fact that it maps and analyses not only regional differences in the rate of drawing subsidies and its determinants, but also differences in the way these subsidies are used (whether for reducing the energy intensity of existing houses by insulation, implementing renewable energy technologies or building new houses with low energy intensity). The analysis revealed significant correlations between the amount of subsidies drawn in districts per capita and variables which indicate territorial stability and social capital. There are significant differences in the rate of drawing subsidies between specific regions that are considered as economically deprived and where people are at higher risk of energy poverty. While border regions in the east of the country show an above-average use of funds for insulation of existing houses, in the largest cities and their suburban areas people are more likely to use subsidies for construction of new houses. The results indicate that subsides should be redistributed and targeted more effectively in respect to the declared objectives of the program.