Multiple benefits of renovation in buildings - PU Europe

Multiple benefits of investing in energy
efficient renovation of buildings
Table A.11 Tax revenue lost from reduced energy consumption,
2030
2020-2030
Reduced consumption
- Low EE scenario
(Mtoe)
Reduced energy tax
income (bn €)
Reduced consumption
- High EE
scenario (Mtoe)
Heating 48.7 2.3 76.6 3.7
Electricity 9.4 2.3 12.0 2.9
Sum 58 4.6 89 6.6
Note:
These estimates do not include the rebound effect
Source: Copenhagen Economics based on DG TAXUD (2012), and DG Energy (2010).
Reduced energy tax
income (bn €)
A.7 Reduced outlay on subsidies – energy consumption
Several EU governments grant some sort of energy consumption subsidy to its citizens
and industry. Subsidies to energy intensive industry are typically safeguards against carbon
leakage; that is the loss of competitiveness by especially energy intensive companies.
We do not focus on the subsidies related to energy intensive industries. Instead, we focus
on energy consumption subsidies to regular consumers e.g. through tax exemptions to
input in power production or excise tax exemptions to natural gas purchases in households.
Based on extensive work by the OECD, we find that such energy consumption subsidies
in the EU OECD countries constitute €11.7 billion annually, cf. Table A.12. For all of
EU we therefore expect this number to be slightly higher.
Table A.12 Energy consumption subsidies in EU OECD
Country Reduced VAT or taxes on energy consumption € billion
Belgium Fuel Tax Reduction for Certain Professional Uses 1.52
France Excise tax exemptions and reduced rates 0.47
Germany Excise tax exemptions and reduced rates 3.54
Hungary Excise tax exemptions and reduced rates 0.15
Italy Excise tax exemptions and reduced rates 0.11
Netherlands Excise tax exemptions and reduced rates 0.26
Spain Fuel Tax Reductions 1.37
Sweden Excise tax exemptions and reduced rates 0.51
United Kingdom Reduced Rate of VAT for Fuel and Power 3.72
Total 11.7
Note: Reduced taxes has been considered for all EU OECD countries.
Source: OECD (2011c)
The energy efficiency investments will reduce energy consumption by app. 6 per cent in
the low EE scenario, and app. 9 per cent in the high EE scenario. This corresponds to a
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