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 />
Table A.28 Accumulated impact on GDP, low EE scenario<br />
Pct. <strong>in</strong>crease <strong>in</strong><br />
GDP as <strong>in</strong>crease<br />
<strong>in</strong> public spend<strong>in</strong>g<br />
Increase <strong>in</strong><br />
"permanent"<br />
<strong>in</strong>vestments<br />
(€ billion)<br />
Derived <strong>in</strong>crease<br />
<strong>in</strong> public spend<strong>in</strong>g<br />
(per cent)<br />
2012 2013 2014 2015 2016 2017<br />
28.7 2.8 2.8 2.8 2.8 2.8<br />
0.23 0.02 0.02 0.02 0.02 0.02<br />
2012 0.23 0.23<br />
2013 0.28 0.02 0.30<br />
2014 0.21 0.03 0.02 0.25<br />
2015 0.11 0.02 0.03 0.02 0.18<br />
2016 0.05 0.01 0.02 0.03 0.02 0.12<br />
2017 0.02 0.00 0.01 0.02 0.03 0.02 0.10<br />
Total 1.19<br />
Note:<br />
The s<strong>in</strong>gle elements do not always equal the total impact due to round<strong>in</strong>g.<br />
Source: Copenhagen Economics based on OECD (2001).<br />
Total<br />
impact on<br />
GDP<br />
(<strong>in</strong> percent<br />
per year )<br />
Effects on public f<strong>in</strong>ances<br />
When economic activity is stimulated <strong>in</strong> a period <strong>of</strong> economic downturn it creates jobs for<br />
people who were formerly unemployed. This improves public f<strong>in</strong>ances by reduc<strong>in</strong>g expenses<br />
to unemployment <strong>benefits</strong>, and <strong>in</strong>creas<strong>in</strong>g tax revenues e.g. through <strong>in</strong>creased<br />
VAT revenue from <strong>in</strong>creased economic activity. In order to assess the size <strong>of</strong> this effect,<br />
we use so called fiscal multipliers which <strong>in</strong>dicate how much public budgets are improved/deteriorated<br />
when GDP is <strong>in</strong>creased/decreased. The primary driver <strong>of</strong> these multipliers<br />
is the <strong>in</strong>crease <strong>in</strong> tax revenue and avoided unemployment <strong>benefits</strong>, but the multipliers<br />
essentially captures any improvements <strong>in</strong> public budgets from <strong>in</strong>creas<strong>in</strong>g GDP. The<br />
average fiscal multiplier for EU27 is 0.44, cf. Table A.29, which means that every time<br />
GDP is <strong>in</strong>creased by €1 million, public budgets are improved by €0.44 million.<br />
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