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

Peer-reviewed paper 7-128-26

The European Union targets major reductions in energy use and greenhouse gas emissions by 2050 and promotes energy-efficient renovation (EER) through the Renovation Wave to advance decarbonization and reduce energy poverty. In the Netherlands, social housing associations (HAs) manage about one-third of the housing stock and face policy-set targets to upgrade dwellings with low energy labels (E/F/G), increasing pressure to accelerate organisational decision-making and project delivery. 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 for a narrative literature review. An analytical framework is then developed to operationalize four theoretical components: (1) stage-phase 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. The connections of the four components are established through a narrative literature review. The analytical framework offers a basis for future empirical research to support practitioners and policymakers in identifying and addressing "hidden barriers” that hinder EER delivery in social housing.

Read the full paper in Energy Demand.

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