The building sector is recognized as a sector that offers large potentials for improvements in energy efficiency. Though, a number of barriers exist that prevent many households from retrofitting their dwellings. By comparing economic instruments and regulation this study assesses which type of policy is suited best to overcome these barriers. The comparative analysis is conducted through the simulation of two scenarios and draws upon the RES-IRF, an energy-economy model. The full study can be downoladed in the publication section of this website.