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.7 Dynamics <strong>of</strong> a permanent <strong>in</strong>crease <strong>in</strong> public spend<strong>in</strong>g<br />
per cent <strong>of</strong> GDP<br />
1.4<br />
1.2<br />
1<br />
0.8<br />
0.6<br />
0.4<br />
0.2<br />
0<br />
t t+1 t+2 t+3 t+4 t+5 t+6<br />
Note:<br />
The effect is showed for the euro area.<br />
Source: OECD (2001)<br />
By comb<strong>in</strong><strong>in</strong>g the assumed <strong>in</strong>vestment path <strong>of</strong> Figure A.6 we can derive the effect on GDP<br />
from <strong>in</strong>vest<strong>in</strong>g <strong>in</strong> order to meet the identified potential for energy efficient <strong>renovation</strong> <strong>of</strong><br />
build<strong>in</strong>gs <strong>in</strong> <strong>Europe</strong>. We do this by assum<strong>in</strong>g that an <strong>in</strong>crease <strong>in</strong> the energy efficiency<br />
<strong>renovation</strong>s is equal to an <strong>in</strong>crease <strong>in</strong> public spend<strong>in</strong>g. S<strong>in</strong>ce we have derived the <strong>in</strong>vestment<br />
path as an <strong>in</strong>crease <strong>in</strong> the permanent <strong>in</strong>vestment level, we can use the multipliers<br />
related to a permanent <strong>in</strong>crease <strong>in</strong> public spend<strong>in</strong>g.<br />
We apply the average direct estimate on GDP from Table A.27 as the first year effect, and<br />
the multipliers from Figure A.7 to calculate the effects on the follow<strong>in</strong>g years. We f<strong>in</strong>d that<br />
the accumulated <strong>in</strong>crease <strong>in</strong> GDP from <strong>in</strong>vest<strong>in</strong>g <strong>in</strong> energy efficient <strong>renovation</strong> <strong>of</strong> build<strong>in</strong>gs<br />
dur<strong>in</strong>g the period <strong>of</strong> spare capacity to be 1.19 per cent, cf. Table A.28. This equals<br />
€153 billion. 75 By the same method, we f<strong>in</strong>d that <strong>in</strong> the high EE scenario the accumulated<br />
effect on GDP is 2.26 per cent, equall<strong>in</strong>g €291 billion.<br />
75 Based on 2012 GDP <strong>in</strong> current prices<br />
73