Fiscal and tax policy support for energy efficiency retrofit for existing residential buildings in Chinaʹs northern heating region

Energy efficiency retrofit for existing residential buildings (EERERB) in Chinaʹs northern heating region is an important component of the national energy strategy. The main content and related subject in EERERB performance is the basis of understanding and developing targeted policies. So, this paper designed the content system of EERERB. And then, provided a cost-benefit analysis on related subjects, assessed the governmentʹs function in EERERB, and come to the conclusion that the Chinese government should increase fiscal fund investment and implement more fiscal and tax incentive policies. Moreover, in view of Chinaʹs current policy, which lacks long-term mechanism and flexibility, this paper proposed specific policy recommendations, including clarifying the governmentʹs corresponding responsibilities at all levels and increasing the intensity of the central governmentʹs transfer payments. It further proposed targeted financial and tax policies for supporting and encouraging heating enterprises and owners, as well as policies to cultivate energy-saving service markets and to support the ESCO.