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The impact of DOE building technology energy efficiency programs on U.S. employment, income, and investment


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  • Scott, Michael J.
  • Roop, Joseph M.
  • Schultz, Robert W.
  • Anderson, David M.
  • Cort, Katherine A.
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    The U.S. Department of Energy's Office of Energy Efficiency and Renewable Energy (EERE) analyzes the macroeconomic impacts of its programs that are designed to increase the energy efficiency of the U.S. residential and commercial building stock. The analysis is conducted using the Impact of Sector Energy Technologies (ImSET) model, a special-purpose 188-sector input-output model of the U.S. economy designed specifically to evaluate the impacts of energy efficiency investments and saving. For the analysis described in the paper, ImSET was amended to provide estimates of sector-by-sector capital requirements and investment. In the scenario of the Fiscal Year (FY) 2005 Building Technologies (BT) program, the technologies and building practices being developed and promoted by the BT program have the potential to save about 2.9 - 1015Btu in buildings by the year 2030, about 27% of the expected growth in building energy consumption by the year 2030. The analysis reported in the paper finds that, by the year 2030, these savings have the potential to increase employment by up to 446,000 jobs, increase wage income by $7.8 billion, reduce needs for capital stock in the energy sector and closely related supporting industries by about $207 billion (and the corresponding annual level of investment by $13 billion), and create net capital savings that are available to grow the nation's future economy.

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    Bibliographic Info

    Article provided by Elsevier in its journal Energy Economics.

    Volume (Year): 30 (2008)
    Issue (Month): 5 (September)
    Pages: 2283-2301

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    Handle: RePEc:eee:eneeco:v:30:y:2008:i:5:p:2283-2301

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    1. Kaiser, Mark J. & Olatubi, Williams O. & Pulsipher, Allan G., 2005. "Economic, energy, and environmental impact of the Louisiana Energy Fund," Energy Policy, Elsevier, vol. 33(7), pages 873-883, May.
    2. Peter Berck & Sandra Hoffmann, 2002. "Assessing the Employment Impacts of Environmental and Natural Resource Policy," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 22(1), pages 133-156, June.
    3. Kaiser, Mark J. & Pulsipher, Allan G. & Baumann, Robert H., 2004. "The potential economic and environmental impact of a Public Benefit Fund in Louisiana," Energy Policy, Elsevier, vol. 32(2), pages 191-206, January.
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    Cited by:
    1. Alfredo M. Pereira & Rui Manuel Marvão Pereira, 2009. "Is Fuel-Switching a No-Regrets Environmental Policy? VAR Evidence on Carbon Dioxide Emissions, Energy Consumption and Economic Performance in Portugal," Working Papers 87, Department of Economics, College of William and Mary.
    2. Arazmuradov, Annageldy, 2011. "Energy consumption and carbon dioxide environmental efficiency for former Soviet Union economies. evidence from DEA window analysis," MPRA Paper 36903, University Library of Munich, Germany, revised 24 Feb 2012.
    3. Markaki, M. & Belegri-Roboli, A. & Michaelides, P. & Mirasgedis, S. & Lalas, D.P., 2013. "The impact of clean energy investments on the Greek economy: An input–output analysis (2010–2020)," Energy Policy, Elsevier, vol. 57(C), pages 263-275.
    4. Carley, Sanya & Lawrence, Sara & Brown, Adrienne & Nourafshan, Andrew & Benami, Elinor, 2011. "Energy-based economic development," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(1), pages 282-295, January.
    5. Jürgen Blazejczak & Frauke G. Braun & Dietmar Edler & Wolf-Peter Schill, 2011. "Economic Effects of Renewable Energy Expansion: A Model-Based Analysis for Germany," Discussion Papers of DIW Berlin 1156, DIW Berlin, German Institute for Economic Research.
    6. Alfredo Pereira & Rui Pereira, 2010. "On the potential economic costs of cutting carbon dioxide emissions in Portugal," Portuguese Economic Journal, Springer, vol. 9(3), pages 211-222, December.
    7. Ludovico Alcorta & Morgan Bazilian & Giuseppe De Simone & Ascha Pedersen, 2012. "Return on Investment from Industrial Energy Efficiency: Evidence from Developing Countries," Working Papers 2012.35, Fondazione Eni Enrico Mattei.


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