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 />
Figure A.1 Effects <strong>of</strong> energy efficient <strong>renovation</strong> <strong>of</strong> build<strong>in</strong>gs<br />
Source: Copenhagen Economics<br />
Energy sav<strong>in</strong>gs through reduced energy consumption is a direct benefit stemm<strong>in</strong>g from<br />
<strong>in</strong>creased energy efficiency. In privately owned build<strong>in</strong>gs the <strong>benefits</strong> will typically accrue<br />
to the owner or the user <strong>of</strong> the build<strong>in</strong>g, 52 while <strong>in</strong> publicly owned build<strong>in</strong>gs the <strong>benefits</strong><br />
will accrue to the public or the users <strong>of</strong> publicly rented apartments. Given the proper distribution<br />
<strong>of</strong> <strong>benefits</strong> between public entities, this will improve public budgets. The benefit<br />
from energy sav<strong>in</strong>gs implicitly also <strong>in</strong>cludes the avoided capital cost <strong>of</strong> build<strong>in</strong>g additional<br />
power plants, as these capital costs are <strong>in</strong>cluded <strong>in</strong> the price <strong>of</strong> electricity.<br />
As energy efficient <strong>renovation</strong> <strong>of</strong> build<strong>in</strong>gs will reduce energy consumption, it will have a<br />
negative effect on public budgets through reduced tax revenue from energy consumption<br />
taxes.<br />
The <strong>Europe</strong>an Member States are currently subsidis<strong>in</strong>g both fossil fuel consumption and<br />
deployment <strong>of</strong> renewable energy technologies. By reduc<strong>in</strong>g energy consumption through<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 im-<br />
52 We will discuss the pr<strong>in</strong>cipal agent problem related to owners/tenants <strong>in</strong> the section related to reduced energy consumption<br />
below.<br />
46