The existing residential building stock accounts for a substantial portion of worldwide energy consumption and greenhouse emissions. Improvements to the thermal performance of existing buildings is a vital activity to mitigate climate change, and often has additional benefits in the form of improved comfort, health and well-being for occupants. Despite the extensive body of literature in this area, it remains a difficult task to assess the performance of retrofit packages in occupied residential buildings.

With the high growth urbanization and increasing new urban population, the huge demand for infrastructures and dwellings has become a great challenge for the sustainable development in Chinese cities. The building sector shares one fourth of total energy consumption in the country and plays an important role in reducing the energy consumption and the consequential greenhouse gas (GHG) emissions. Some policies have been issued for promoting the low carbon sustainable development in China's buildings.

The economics of energy efficiency programmes have been subject to considerable academic debate lasting well over three decades now. In this paper, we contribute to this debate by reviewing the costs and benefits of a specific type of policy+ instrument that recently gained significant traction in Europe – Energy Efficiency Obligations - EEOs. Following the introduction of the EU Energy Efficiency Directive in 2012 the number of EEOs in Europe has grown from five schemes to now 16 EEOs in operation or planned across the EU.