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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 />

Table A.20 Quantifiable health <strong>benefits</strong> <strong>in</strong> the literature<br />

Heati<br />

ng<br />

Insulation<br />

Better life quality<br />

Less public<br />

health spend<strong>in</strong>g<br />

Fewer missed<br />

days <strong>of</strong> work<br />

Better life quality<br />

Less public<br />

health spend<strong>in</strong>g<br />

Fewer missed<br />

days <strong>of</strong> work<br />

Threlfall (2011) -<br />

AWARM programme<br />

14.79 months extended<br />

lifetime (improved<br />

health)<br />

11.96 months extended<br />

lifetime (improved<br />

health)<br />

Source: Based on the sources <strong>in</strong> the table<br />

Lidell et al (2011) -<br />

Kirklees Warm<br />

Zone<br />

Barnard et al (2011) -<br />

Warm Up New Zealand<br />

758,500 GBP 9 NZD per household<br />

15.2 Quality adjusted<br />

life years<br />

UK Department<br />

<strong>of</strong> Health<br />

(2010)<br />

42 pct<br />

465 NZD per household <strong>in</strong> reduced<br />

mortality<br />

75 NZD per household 42 pct<br />

59 NZD per household<br />

Based on these estimates and the cost <strong>of</strong> the specific energy efficient projects, we can calculate<br />

a cost-benefit ratio <strong>of</strong> each s<strong>in</strong>gle health benefit. When the different studies have<br />

given different results, we have constructed an <strong>in</strong>terval from the lowest estimate to the<br />

highest estimate. The ratios are generally below unity, with the exception <strong>of</strong> <strong>benefits</strong> from<br />

improved well-be<strong>in</strong>g associated with improv<strong>in</strong>g <strong>in</strong>sulation which equals 1.64, cf. Table<br />

A.21. This result comes from the reduced mortality rate from low <strong>in</strong>door temperature. 70<br />

Table A.21 Cost-benefit ratios<br />

Cost benefit<br />

ratios<br />

Health <strong>benefits</strong> -<br />

better life quality<br />

Less public health spend<strong>in</strong>g<br />

Heat<strong>in</strong>g 0.36-0.46 0.42 0<br />

Insulation 0.12-1.64 0.42-0.99 0.78<br />

Fewer missed days <strong>of</strong><br />

work<br />

Source: Own calculations based on Threlfall (2011), Liddell et al. (2011), Barnard et al. (2011), and UK Department<br />

<strong>of</strong> Health (2010).<br />

By apply<strong>in</strong>g these cost-benefit ratios to the amount <strong>of</strong> <strong>in</strong>vestments needed to realize the<br />

energy sav<strong>in</strong>g potentials <strong>in</strong> the EU identified above, we arrive at estimates <strong>of</strong> the health<br />

<strong>benefits</strong> associated with these <strong>in</strong>vestments, cf. Table A.22. Please note that these estimates<br />

are highly uncerta<strong>in</strong> at an EU level, s<strong>in</strong>ce the uncerta<strong>in</strong>ty related to the estimate <strong>of</strong><br />

each study is accentuated by apply<strong>in</strong>g it to the EU as a whole. Moreover, e.g. less public<br />

health spend<strong>in</strong>g is highly dependent on the specific health system <strong>in</strong> each country.<br />

70 Note that this result is taken from the project <strong>in</strong> New Zealand, and the condition <strong>of</strong> New Zealandic houses may not be directly<br />

comparable to <strong>Europe</strong>an houses. However, the notion <strong>of</strong> a “<strong>Europe</strong>an house” it not suitable as the condition varies<br />

across countries. This is the primary driver <strong>of</strong> the conundrum that cold-related deaths is higher <strong>in</strong> the warmer<br />

Southern <strong>Europe</strong>an countries than <strong>in</strong> the colder Northern <strong>Europe</strong>an countries.<br />

Note also that we equalised the “value <strong>of</strong> a statistical life” which took different values across the UK and NZ study. We have used<br />

the UK estimate.<br />

66

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