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 />
prove 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, comb<strong>in</strong>ed<br />
heat and power plants (CHP) and local heat<strong>in</strong>g is reduced. Power and heat generated <strong>in</strong><br />
these facilities give rise to air pollution such as NO x, SO 2, small particle matters (PM2.5)<br />
and CO 2, and by 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 will be most pronounced dur<strong>in</strong>g periods <strong>of</strong> economic crises, when there is spare<br />
capacity <strong>in</strong> the economy.<br />
A.2 Scenarios<br />
In the follow<strong>in</strong>g calculations, we consider two different scenarios for the level <strong>of</strong> energy<br />
efficiency <strong>in</strong>vestments. These scenarios have been developed by Fraunh<strong>of</strong>er et al (2009)<br />
who has created a comprehensive database for energy efficiency <strong>in</strong>vestment potentials <strong>in</strong><br />
all EU countries. The available potential for energy efficiency depends on the level <strong>of</strong> policy<br />
commitment to e.g. break down barriers to energy efficiency <strong>in</strong>vestments.<br />
In our calculations we follow Fraunh<strong>of</strong>er et al ’s (2009) def<strong>in</strong>ition <strong>of</strong> two scenarios. The<br />
first scenario assumes a high level policy <strong>in</strong>tervention which makes it possible to undertake<br />
all energy efficiency <strong>in</strong>vestments which is considered cost-effective by Fraunh<strong>of</strong>er et<br />
al (“HPI” <strong>in</strong> Fraunh<strong>of</strong>er et al). The second scenario is the upper level for possible energy<br />
efficiency <strong>in</strong>vestments (“Technical” <strong>in</strong> Fraunh<strong>of</strong>er et al) and is def<strong>in</strong>ed as full penetration<br />
<strong>of</strong> current best practice technologies, such as replac<strong>in</strong>g all wash<strong>in</strong>g mach<strong>in</strong>es with the<br />
most energy efficient model, upgrad<strong>in</strong>g all heat<strong>in</strong>g systems to the most efficient model<br />
etc. In our calculations we refer to these as “Low Energy Efficiency (EE) scenario”, and<br />
“High Energy Efficiency (EE) scenario”.<br />
The low EE scenario, <strong>in</strong>cludes <strong>in</strong>vestments <strong>in</strong> energy-efficiency measures which are costeffective<br />
for the end-user. 53 This means, that <strong>in</strong>vestments will only be undertaken if they<br />
are cost effective <strong>in</strong> the sense that the energy sav<strong>in</strong>gs result<strong>in</strong>g from the <strong>in</strong>vestment will be<br />
higher than the cost <strong>of</strong> the <strong>in</strong>vestment. The low EE scenario also assumes a high level <strong>of</strong><br />
policy ambition <strong>in</strong> terms <strong>of</strong> remov<strong>in</strong>g barriers to energy efficiency <strong>in</strong>vestments. The more<br />
barriers that are removed, the higher the potential will be.<br />
53 Fraunh<strong>of</strong>er ISI et al (2009) def<strong>in</strong>es which measures are “cost-effective” based on several assumptions among others energy<br />
prices, and consumer discount rates.<br />
47