Hidden barriers to energy-efficient renovation in social housing: an analytical framework integrating transaction cost theory and behavioral insights

The European Union targets major reductions in energy use and greenhouse gas emissions by 2050, positioning energy-efficient renovation (EER) as a key strategy for advancing decarbonization and alleviating energy poverty. In the Netherlands, this policy agenda has direct implications for the social housing sector, where housing associations (HAs) manage about one-third of the housing stock and are subject to targets for upgrading dwellings with low energy labels (E/F/G). These requirements intensify pressure to accelerate organisational decision-making and the delivery of EER projects. Although static barriers, such as financial, legal, technical, and social, are well known, a persistent gap concerns “hidden barriers” that delay or disrupt EER due to governance complexity, coordination burdens, and decision-making frictions across project phases.

To address this gap, Transaction Cost Theory (TCT) and Behavioural Insights (BI) are integrated as the theoretical foundation through a narrative literature review. An analytical framework is then developed to operationalize four theoretical components: (1) phase-based governance, (2) transaction costs as hidden barriers, (3) stakeholders and their interactions, and (4) behavioural insights accelerating TCs. The framework suggests that behavioural factors can systematically amplify transaction costs, explaining delays in multi-actor, tenant-sensitive EER projects. Against the backdrop of the EER incentive structure, the proposed framework follows the actual EER process, uncovering hidden barriers as they dynamically emerge throughout the process. The analytical framework provides a basis for future empirical research to help researchers, practitioners, and policymakers identify and address “hidden barriers” that hinder EER delivery in social housing.