Building energy efficiency rating systems have been established worldwide to systematically manage the energy consumption of existing buildings. This study aimed to develop a new energy efficiency rating system for existing residential buildings from two perspectives: (i) establishment of reasonable and fair criteria for the building energy efficiency rating system; and (ii) establishment of comparative incentive and penalty programs to encourage the voluntary participation of all residents in the energy saving campaign. Based on the analysis of the conventional energy efficiency rating system for existing residential buildings, this study was conducted in five steps: (i) data collection and analysis; (ii) correlation analysis between the household size and the CO2 emission density (i.e., CO2 emission per unit area); (iii) cluster formation based on results of the correlation analysis using a decision tree; (iv) establishment of a new energy efficiency rating system for existing buildings; and (v) establishment of incentive and penalty programs using advanced case-based reasoning. The proposed system can allow a policymaker to establish a reasonable and fair energy efficiency rating system for existing residential buildings and can encourage the voluntary participation of all residents in the energy saving campaign. (C) 2013 The Authors. Published by Elsevier Ltd. All rights reserved.