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 1 Annual gross <strong>benefits</strong> to society from energy efficient<br />
<strong>renovation</strong> <strong>of</strong> build<strong>in</strong>gs, 2020<br />
Billion EUR<br />
200<br />
180<br />
160<br />
140<br />
120<br />
100<br />
80<br />
60<br />
40<br />
20<br />
0<br />
Total: 104<br />
42<br />
52<br />
Low EE scenario<br />
4<br />
5<br />
Total: 175<br />
88<br />
75<br />
High EE scenario<br />
6<br />
6<br />
Energy sav<strong>in</strong>gs Reduced outlay on subsidies Reduced air pollution Health <strong>benefits</strong><br />
Note:<br />
These results <strong>in</strong>clude the rebound effect, and can therefore not be compared with the sub-results derived<br />
<strong>in</strong> Chapter 1. We have applied a rebound effect <strong>of</strong> 20 per cent.<br />
The total does not equal the sum <strong>of</strong> each element due to round<strong>in</strong>g.<br />
Source: Copenhagen Economics<br />
While most <strong>of</strong> the <strong>benefits</strong> from <strong>in</strong>creased <strong>in</strong>vestments accrue to society as a whole, governments<br />
may also reap additional net revenue ga<strong>in</strong>s. A lower level <strong>of</strong> total energy consumption<br />
will reduce public spend<strong>in</strong>g on energy bills <strong>in</strong> e.g. public build<strong>in</strong>gs and <strong>in</strong>stitutions,<br />
it will conta<strong>in</strong> public spend<strong>in</strong>g through less hospitalisation, it will imply a reduced<br />
need for subsidies to energy consumption, and facilitate the achievement <strong>of</strong> EU’s 2020<br />
renewable energy targets and reductions <strong>of</strong> greenhouse gases at a lower cost.<br />
In total, annual permanent net revenue ga<strong>in</strong>s to public f<strong>in</strong>ances could reach €30 – 40<br />
billion <strong>in</strong> 2020 if health-related <strong>benefits</strong> from energy efficient <strong>renovation</strong>s are <strong>in</strong>cluded<br />
such as less hospitalisation, cf. Figure 2. 3 This ga<strong>in</strong> is made up from reduced outlay on<br />
government subsidies, reduced energy bills, and less hospitalisation need. In this estimate,<br />
we have taken <strong>in</strong>to account the loss <strong>of</strong> government tax revenue from energy taxation.<br />
If <strong>in</strong>vestments <strong>in</strong> energy efficient <strong>renovation</strong> <strong>of</strong> build<strong>in</strong>gs are cont<strong>in</strong>ued after 2020,<br />
these annual ga<strong>in</strong>s are likely to be doubled <strong>in</strong> 2030.<br />
3 The health <strong>benefits</strong> are evident, but very uncerta<strong>in</strong> to estimate, and should be <strong>in</strong>terpreted accord<strong>in</strong>gly<br />
5