Multiple benefits of renovation in buildings - PU Europe
Multiple benefits of renovation in buildings - PU Europe
Multiple benefits of renovation in buildings - PU Europe
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<strong>Multiple</strong> <strong>benefits</strong> <strong>of</strong> <strong>in</strong>vest<strong>in</strong>g <strong>in</strong> energy<br />
efficient <strong>renovation</strong> <strong>of</strong> build<strong>in</strong>gs<br />
energy efficient <strong>renovation</strong> <strong>of</strong> build<strong>in</strong>gs, both types <strong>of</strong> subsidy can be reduced. This will<br />
have a positive effect on public f<strong>in</strong>ances.<br />
A more <strong>in</strong>direct benefit occurs through health <strong>benefits</strong>. Most energy efficiency measures<br />
will improve the <strong>in</strong>door temperature, and by choos<strong>in</strong>g <strong>renovation</strong> measures that also improve<br />
the <strong>in</strong>door climate, health <strong>benefits</strong> can be obta<strong>in</strong>ed through fewer diseases, reduced<br />
mortality, improved worker productivity, and improved overall quality <strong>of</strong> life. While most<br />
<strong>of</strong> these <strong>benefits</strong> accrue to society <strong>in</strong> general, public budgets may also be improved<br />
through fewer hospital expenses and fewer sick days.<br />
Health <strong>benefits</strong> also occur as power and heat production from power plants, district heat<strong>in</strong>g<br />
plants and local heat<strong>in</strong>g is reduced. Power and heat generated <strong>in</strong> these facilities give<br />
rise to air pollution such as NO x, SO 2, small particle matters (PM2.5) and CO 2, and by<br />
reduc<strong>in</strong>g energy consumption this air pollution can be reduced.<br />
Given the current economic downturn, energy efficiency <strong>in</strong>vestments can <strong>in</strong>crease economic<br />
activity, and improve public budgets by reduc<strong>in</strong>g unemployment <strong>benefits</strong> and <strong>in</strong>creas<strong>in</strong>g<br />
tax revenue from the <strong>in</strong>creased economic activity. Positive effects from this <strong>in</strong>clude,<br />
<strong>in</strong>creased tax revenue (<strong>in</strong>clud<strong>in</strong>g VAT, labour <strong>in</strong>come tax, corporate <strong>in</strong>come tax<br />
etc.) from <strong>in</strong>creased activity and employment, reduced unemployment expenses. This<br />
effect is relevant dur<strong>in</strong>g periods <strong>of</strong> economic crises, when there is spare capacity <strong>in</strong> the<br />
economy.<br />
In addition to these <strong>benefits</strong>, which we attempt to quantify there are additional <strong>benefits</strong><br />
which are more difficult to assess and are beyond the scope <strong>of</strong> this study. Three such <strong>benefits</strong><br />
are the improved life quality <strong>of</strong> liv<strong>in</strong>g <strong>in</strong> a more comfortable liv<strong>in</strong>g environment e.g.<br />
through a high average liv<strong>in</strong>g room temperature (<strong>benefits</strong> which goes beyond the health<br />
<strong>benefits</strong>, which we have tried to quantify), the value <strong>of</strong> reduc<strong>in</strong>g EU’s energy supply dependence<br />
on third-countries, and the reduced dependence on volatile fossil fuel prices.<br />
1.2 Scenarios<br />
We have considered two scenarios for <strong>in</strong>vestments <strong>in</strong> energy efficient <strong>renovation</strong> <strong>of</strong> build<strong>in</strong>gs.<br />
These scenarios have been def<strong>in</strong>ed <strong>in</strong> an extensive study for DG Energy and<br />
Transport <strong>in</strong> 2009. 10 This work established the potential penetration <strong>in</strong> the market <strong>of</strong> best<br />
available technologies under different conditions, such as the level <strong>of</strong> political ambition<br />
for break<strong>in</strong>g down barriers to energy efficiency <strong>in</strong>vestments. Based on this extensive work<br />
we focus on two scenarios: 1) Low Energy Efficiency scenario, and 2) High Energy Efficiency<br />
scenario. These scenarios take <strong>in</strong>to account a basel<strong>in</strong>e <strong>in</strong>crease <strong>in</strong> energy efficient<br />
<strong>renovation</strong> <strong>of</strong> build<strong>in</strong>gs based on a bus<strong>in</strong>ess-as-usual scenario. The potential def<strong>in</strong>ed <strong>in</strong><br />
the two scenarios should therefore be considered <strong>in</strong> addition to bus<strong>in</strong>ess-as-usual.<br />
The low EE scenario assumes a relatively high level <strong>of</strong> policy <strong>in</strong>itiative, <strong>in</strong> order to break<br />
down barriers to otherwise cost effective <strong>in</strong>vestment potential. However, the entire <strong>in</strong>vestment<br />
potential is so called “cost-effective” mean<strong>in</strong>g that under normal assumptions<br />
10 Fraunh<strong>of</strong>er ISI et al (2009)<br />
12