Multiple benefits of renovation in buildings - PU Europe

Multiple benefits of investing in energy
efficient renovation of buildings
Figure 2 Annual improvements of public finances, 2020
Billion EUR
50
40
Total: 30
Total: 40
30
20
10
0
-10
27
19
6
5
9
12
-4 -6
Low EE scenario
High EE scenario
Health benefits Reduced outlay on subsidies Lost tax revenue from energy taxation Energy savings
Note:
These estimated gains to public finances are already included in in Figure 1, and should not be considered
additional to these.
The total does not equal the sum of each element due to rounding.
Source: Copenhagen Economics
Now is a particularly good time for pursuing these gains. Attaining the benefits will require
investments and man power, but the current economic climate is ideal for starting
such projects. Real interest rates are at record low levels in the majority of EU Member
States while, unfortunately, unemployment has risen in nearly all countries since 2008
and are likely to remain above “structural” levels for another 3-5 years. So investment
costs are low and there are ample available labour resources.
Our results suggest that by harvesting the investment opportunities provided by energy
efficiency renovations in the existing building stock, the EU Member States can stimulate
economic activity at an appropriate time, which can give rise to jobs for 760,000 –
1,480,000 people, 4 and bring benefits to GDP of €153 - 291 billion depending on the level
of investments, cf. Figure 3. This corresponds to between 1.2 per cent and 2.3 per cent of
EU GDP. 5 These benefits stem from increased economic activity in both the primary affected
sectors and through the indirect impact on secondary sectors. These benefits are
not permanent, but instead a “one-off” benefit from stimulating activity in a period of
economic underperformance.
4 These jobs will to a very large extent be “new jobs” in the time of economic underperformance. In fact, these jobs are likely to
remain in the energy efficient renovation of buildings industry. However, as the economy returns to it structural level,
there will be no positive effect on total employment in the economy.
5 GDP measured in 2012 at current prices
6