3FOOD

Third Industrial Revolution Consulting Group
They also include the buildup of information and communication technologies – the shift to 5G
– that enable the many existing and new buildings, as well as other structures, to serve as
interactive nodes that elevate and optimize overall economic performance of the Luxembourg
economy. How might these options generate a net positive return compared to the standard
business-as-usual assumptions? Table 1 below highlights at least seven key drivers that can
support a more vibrant economy as a result of any given TIR Innovation Scenario and resulting
Master Plan.
The Catalysts to a More Robust Luxembourg Economy
The first key driver is referred to as the intensity shift. Just as some energy resources are more
carbon-intensive than others—for example natural gas produces less carbon dioxide per
megajoule of energy than does coal while renewable energy resources produce no such
emissions compared to any form of fossil fuels—different sectors of the Luxembourg economy
have different income and employment intensities. More to the point, any activity or
investment that fosters the development of a more productive infrastructure, that upgrades
existing buildings, or that leads to the erection of new facilities—all of this done in a way that
also reduces both energy consumption and energy costs—must necessarily create a shift in
spending from capital-intensive energy sectors to other sectors that are generally more laborintensive.
The scale of that shift depends on a number of economic factors such as the level of
imported goods and services which enables that buildout. It also depends on the magnitude of
net savings. Moreover, to the extent those investments encourage larger energy savings and
other productivity benefits, they will facilitate a greater level of capital deepening that
facilitates a more dynamic use of capital (see Figure 1 on the following page).
Table 1. The Seven Major Drivers of Employment and Economic Benefits
Source: As described and discussed in the text of the manuscript.
Figure 1 – based on 2013 data from STATEC – shows that energy services supported 4.0 jobs per
million euros of value-added, compared to 4.9 in information and communication services, 13.7
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