IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v179y2016icp1304-1320.html
   My bibliography  Save this article

Contributing to a green energy economy? A macroeconomic analysis of an energy efficiency program operated by a Swiss utility

Author

Listed:
  • Yushchenko, Alisa
  • Patel, Martin Kumar

Abstract

In order to enhance energy efficiency as a pillar of transition to a green energy economy it is important to understand whether and under which conditions energy efficiency programs could have positive economic and social impacts. There are a growing number of studies on macroeconomic impacts of energy efficiency programs for various countries and regions. However, in Switzerland only few evaluations have been performed. The present study evaluates the impacts on GDP and employment of Geneva’s energy efficiency program portfolio éco21 which is operated by the local utility. Two programs aiming for electricity savings in the residential sector are analyzed: Eco-sociales targets social housing and Communs d’immeubles focuses on common spaces in buildings. An input–output model is developed, based on the Swiss input–output table, program administrator data, Swiss, and European statistics. Both impacts of initial expenditure and energy cost savings are evaluated. We estimate and compare the impacts of the two programs and discuss factors that cause differences. Our results show that energy efficiency programs can have positive impacts on GDP and employment. According to our estimates, each Swiss Franc (CHF) spent within the energy efficiency program creates approximately 0.2 CHF of additional GDP compared to the reference case scenario. Net impacts on employment are approximately 0.7 and 1.6 additional jobs in full-time equivalent for 1 million CHF of expenditure driven by Eco-sociales and Communs d’immeubles respectively, compared to the reference case scenario. However, the results strongly depend on several hypotheses, including the impact of energy savings on the domestic energy sector, the import share in consumed goods and services, electricity prices, lifetimes of energy efficiency measures, and the assumed expenditure patterns. Based on our results we provide recommendations on measures for improving the macroeconomic impacts of energy efficiency programs: a preference for expenditure on local goods and services, maximization of cost effectiveness of energy efficiency programs, and their integration with energy supply planning. We conclude that energy efficiency programs and policies should be well coordinated with other policies in practice, the roles of stakeholders should be clearly defined, and all stakeholders should be provided with necessary instruments and powers.

Suggested Citation

  • Yushchenko, Alisa & Patel, Martin Kumar, 2016. "Contributing to a green energy economy? A macroeconomic analysis of an energy efficiency program operated by a Swiss utility," Applied Energy, Elsevier, vol. 179(C), pages 1304-1320.
  • Handle: RePEc:eee:appene:v:179:y:2016:i:c:p:1304-1320
    DOI: 10.1016/j.apenergy.2015.12.028
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261915016013
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.apenergy.2015.12.028?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Choi, Jun-Ki & Morrison, Drew & Hallinan, Kevin P. & Brecha, Robert J., 2014. "Economic and environmental impacts of community-based residential building energy efficiency investment," Energy, Elsevier, vol. 78(C), pages 877-886.
    2. Frondel, Manuel & Ritter, Nolan & Schmidt, Christoph M. & Vance, Colin, 2010. "Economic impacts from the promotion of renewable energy technologies: The German experience," Energy Policy, Elsevier, vol. 38(8), pages 4048-4056, August.
    3. Thollander, Patrik & Backlund, Sandra & Trianni, Andrea & Cagno, Enrico, 2013. "Beyond barriers – A case study on driving forces for improved energy efficiency in the foundry industries in Finland, France, Germany, Italy, Poland, Spain, and Sweden," Applied Energy, Elsevier, vol. 111(C), pages 636-643.
    4. 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.
    5. Shi, Xunpeng, 2015. "Application of best practice for setting minimum energy efficiency standards in technically disadvantaged countries: Case study of Air Conditioners in Brunei Darussalam," Applied Energy, Elsevier, vol. 157(C), pages 1-12.
    6. Rudberg, Martin & Waldemarsson, Martin & Lidestam, Helene, 2013. "Strategic perspectives on energy management: A case study in the process industry," Applied Energy, Elsevier, vol. 104(C), pages 487-496.
    7. Mathiesen, Brian Vad & Lund, Henrik & Karlsson, Kenneth, 2011. "100% Renewable energy systems, climate mitigation and economic growth," Applied Energy, Elsevier, vol. 88(2), pages 488-501, February.
    8. 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.
    9. Baskette, C. & Horii, B. & Kollman, E. & Price, S., 2006. "Avoided cost estimation and post-reform funding allocation for California's energy efficiency programs," Energy, Elsevier, vol. 31(6), pages 1084-1099.
    10. Herrerias, M.J. & Joyeux, R. & Girardin, E., 2013. "Short- and long-run causality between energy consumption and economic growth: Evidence across regions in China," Applied Energy, Elsevier, vol. 112(C), pages 1483-1492.
    11. Laitner, Skip & Bernow, Stephen & DeCicco, John, 1998. "Employment and other macroeconomic benefits of an innovation-led climate strategy for the United States," Energy Policy, Elsevier, vol. 26(5), pages 425-432, April.
    12. Lehr, Ulrike & Nitsch, Joachim & Kratzat, Marlene & Lutz, Christian & Edler, Dietmar, 2008. "Renewable energy and employment in Germany," Energy Policy, Elsevier, vol. 36(1), pages 108-117, January.
    13. Kuckshinrichs, Wilhelm & Kronenberg, Tobias & Hansen, Patrick, 2010. "The social return on investment in the energy efficiency of buildings in Germany," Energy Policy, Elsevier, vol. 38(8), pages 4317-4329, August.
    14. Peter Berck & Sandra Hoffmann, 2002. "Assessing the Employment Impacts of Environmental and Natural Resource Policy," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 22(1), pages 133-156, June.
    15. Karmellos, M. & Kiprakis, A. & Mavrotas, G., 2015. "A multi-objective approach for optimal prioritization of energy efficiency measures in buildings: Model, software and case studies," Applied Energy, Elsevier, vol. 139(C), pages 131-150.
    16. Hillebrand, Bernhard & Buttermann, Hans Georg & Behringer, Jean Marc & Bleuel, Michaela, 2006. "The expansion of renewable energies and employment effects in Germany," Energy Policy, Elsevier, vol. 34(18), pages 3484-3494, December.
    17. Scott, Michael J. & Roop, Joseph M. & Schultz, Robert W. & Anderson, David M. & Cort, Katherine A., 2008. "The impact of DOE building technology energy efficiency programs on U.S. employment, income, and investment," Energy Economics, Elsevier, vol. 30(5), pages 2283-2301, September.
    18. Tourkolias, C. & Mirasgedis, S., 2011. "Quantification and monetization of employment benefits associated with renewable energy technologies in Greece," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(6), pages 2876-2886, August.
    19. Wei, Max & Patadia, Shana & Kammen, Daniel M., 2010. "Putting renewables and energy efficiency to work: How many jobs can the clean energy industry generate in the US?," Energy Policy, Elsevier, vol. 38(2), pages 919-931, February.
    20. Ziegelmann, Arko & Mohr, Markus & Unger, Hermann, 2000. "Net employment effects of an extension of renewable-energy systems in the Federal Republic of Germany," Applied Energy, Elsevier, vol. 65(1-4), pages 329-338, April.
    21. Yi, Hongtao, 2013. "Clean energy policies and green jobs: An evaluation of green jobs in U.S. metropolitan areas," Energy Policy, Elsevier, vol. 56(C), pages 644-652.
    22. 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.
    23. Lehr, Ulrike & Lutz, Christian & Edler, Dietmar, 2012. "Green jobs? Economic impacts of renewable energy in Germany," Energy Policy, Elsevier, vol. 47(C), pages 358-364.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Koelbl, Barbara S. & van den Broek, Machteld A. & Wilting, Harry C. & Sanders, Mark W.J.L. & Bulavskaya, Tatyana & Wood, Richard & Faaij, André P.C. & van Vuuren, Detlef P., 2016. "Socio-economic impacts of low-carbon power generation portfolios: Strategies with and without CCS for the Netherlands," Applied Energy, Elsevier, vol. 183(C), pages 257-277.
    2. Caurla, Sylvain & Bertrand, Vincent & Delacote, Philippe & Le Cadre, Elodie, 2018. "Heat or power: How to increase the use of energy wood at the lowest cost?," Energy Economics, Elsevier, vol. 75(C), pages 85-103.
    3. Zhou, Xiaoxiao & Cai, Ziming & Tan, Kim Hua & Zhang, Linling & Du, Juntao & Song, Malin, 2021. "Technological innovation and structural change for economic development in China as an emerging market," Technological Forecasting and Social Change, Elsevier, vol. 167(C).
    4. Sabo, Mahmoud Lurwan & Mariun, Norman & Hizam, Hashim & Mohd Radzi, Mohd Amran & Zakaria, Azmi, 2017. "Spatial matching of large-scale grid-connected photovoltaic power generation with utility demand in Peninsular Malaysia," Applied Energy, Elsevier, vol. 191(C), pages 663-688.
    5. Katris, Antonios & Turner, Karen, 2021. "Can different approaches to funding household energy efficiency deliver on economic and social policy objectives? ECO and alternatives in the UK," Energy Policy, Elsevier, vol. 155(C).
    6. Yushchenko, Alisa & Patel, Martin Kumar, 2017. "Cost-effectiveness of energy efficiency programs: How to better understand and improve from multiple stakeholder perspectives?," Energy Policy, Elsevier, vol. 108(C), pages 538-550.
    7. Freyre, Alisa & Klinke, Sandra & Patel, Martin K., 2020. "Carbon tax and energy programs for buildings: Rivals or allies?," Energy Policy, Elsevier, vol. 139(C).
    8. Benedetti, Miriam & Bonfa', Francesca & Bertini, Ilaria & Introna, Vito & Ubertini, Stefano, 2018. "Explorative study on Compressed Air Systems’ energy efficiency in production and use: First steps towards the creation of a benchmarking system for large and energy-intensive industrial firms," Applied Energy, Elsevier, vol. 227(C), pages 436-448.
    9. Perrier, Quentin & Quirion, Philippe, 2018. "How shifting investment towards low-carbon sectors impacts employment: Three determinants under scrutiny," Energy Economics, Elsevier, vol. 75(C), pages 464-483.
    10. Herrero, Carmen & Pineda, José & Villar, Antonio & Zambrano, Eduardo, 2020. "Tracking progress towards accessible, green and efficient energy: The Inclusive Green Energy index," Applied Energy, Elsevier, vol. 279(C).
    11. Valeria Ferreira Gregorio & Laia Pié & Antonio Terceño, 2018. "A Systematic Literature Review of Bio, Green and Circular Economy Trends in Publications in the Field of Economics and Business Management," Sustainability, MDPI, vol. 10(11), pages 1-39, November.
    12. Choi, Jun-Ki & Eom, Jiyong & McClory, Emma, 2018. "Economic and environmental impacts of local utility-delivered industrial energy-efficiency rebate programs," Energy Policy, Elsevier, vol. 123(C), pages 289-298.
    13. Martin K. Patel & Jean-Sébastien Broc & Haein Cho & Daniel Cabrera & Armin Eberle & Alessandro Federici & Alisa Freyre & Cédric Jeanneret & Kapil Narula & Vlasios Oikonomou & Selin Yilmaz, 2021. "Why We Continue to Need Energy Efficiency Programmes—A Critical Review Based on Experiences in Switzerland and Elsewhere," Energies, MDPI, vol. 14(6), pages 1-28, March.
    14. Forouli, Aikaterini & Gkonis, Nikolaos & Nikas, Alexandros & Siskos, Eleftherios & Doukas, Haris & Tourkolias, Christos, 2019. "Energy efficiency promotion in Greece in light of risk: Evaluating policies as portfolio assets," Energy, Elsevier, vol. 170(C), pages 818-831.
    15. Carmen Herrero & Jose' Pineda & Antonio Villar & Eduardo Zambrano, 2020. "The Inclusive Green Energy index of progress," Working Papers 2003, California Polytechnic State University, Department of Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Luigi Aldieri & Jonas Grafström & Kristoffer Sundström & Concetto Paolo Vinci, 2019. "Wind Power and Job Creation," Sustainability, MDPI, vol. 12(1), pages 1-23, December.
    2. Damien Bazin & Amna Omri & Nouri Chtourou, 2015. "Solar Thermal Energy for Sustainable Development in Tunisia," Post-Print halshs-01070616, HAL.
    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. Blazejczak, Jürgen & Braun, Frauke G. & Edler, Dietmar & Schill, Wolf-Peter, 2014. "Economic effects of renewable energy expansion: A model-based analysis for Germany," Renewable and Sustainable Energy Reviews, Elsevier, vol. 40(C), pages 1070-1080.
    5. Cameron, Lachlan & van der Zwaan, Bob, 2015. "Employment factors for wind and solar energy technologies: A literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 45(C), pages 160-172.
    6. Dvořák, Petr & Martinát, Stanislav & der Horst, Dan Van & Frantál, Bohumil & Turečková, Kamila, 2017. "Renewable energy investment and job creation; a cross-sectoral assessment for the Czech Republic with reference to EU benchmarks," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 360-368.
    7. Omri, Emna & Chtourou, Nouri & Bazin, Damien, 2015. "Solar thermal energy for sustainable development in Tunisia: The case of the PROSOL project," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 1312-1323.
    8. Yushchenko, Alisa & de Bono, Andrea & Chatenoux, Bruno & Kumar Patel, Martin & Ray, Nicolas, 2018. "GIS-based assessment of photovoltaic (PV) and concentrated solar power (CSP) generation potential in West Africa," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P2), pages 2088-2103.
    9. Simas, Moana & Pacca, Sergio, 2014. "Assessing employment in renewable energy technologies: A case study for wind power in Brazil," Renewable and Sustainable Energy Reviews, Elsevier, vol. 31(C), pages 83-90.
    10. Llera, E. & Scarpellini, S. & Aranda, A. & Zabalza, I., 2013. "Forecasting job creation from renewable energy deployment through a value-chain approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 21(C), pages 262-271.
    11. Wiser, Ryan & Bolinger, Mark & Heath, Garvin & Keyser, David & Lantz, Eric & Macknick, Jordan & Mai, Trieu & Millstein, Dev, 2016. "Long-term implications of sustained wind power growth in the United States: Potential benefits and secondary impacts," Applied Energy, Elsevier, vol. 179(C), pages 146-158.
    12. Markandya, Anil & Arto, Iñaki & González-Eguino, Mikel & Román, Maria V., 2016. "Towards a green energy economy? Tracking the employment effects of low-carbon technologies in the European Union," Applied Energy, Elsevier, vol. 179(C), pages 1342-1350.
    13. Ortega, Margarita & Río, Pablo del & Ruiz, Pablo & Thiel, Christian, 2015. "Employment effects of renewable electricity deployment. A novel methodology," Energy, Elsevier, vol. 91(C), pages 940-951.
    14. Bohlmann, H.R. & Horridge, J.M. & Inglesi-Lotz, R. & Roos, E.L. & Stander, L., 2019. "Regional employment and economic growth effects of South Africa’s transition to low-carbon energy supply mix," Energy Policy, Elsevier, vol. 128(C), pages 830-837.
    15. Duscha, Vicki & Fougeyrollas, Arnaud & Nathani, Carsten & Pfaff, Matthias & Ragwitz, Mario & Resch, Gustav & Schade, Wolfgang & Breitschopf, Barbara & Walz, Rainer, 2016. "Renewable energy deployment in Europe up to 2030 and the aim of a triple dividend," Energy Policy, Elsevier, vol. 95(C), pages 314-323.
    16. Lehr, Ulrike & Lutz, Christian & Edler, Dietmar, 2012. "Green jobs? Economic impacts of renewable energy in Germany," Energy Policy, Elsevier, vol. 47(C), pages 358-364.
    17. Arvanitopoulos, T. & Agnolucci, P., 2020. "The long-term effect of renewable electricity on employment in the United Kingdom," Renewable and Sustainable Energy Reviews, Elsevier, vol. 134(C).
    18. Jinwon Bae & Sandy Dall'erba, 2016. "The economic impact of a new solar power plant in Arizona: Comparing the input-output results generated by JEDI vs. IMPLAN," Regional Science Policy & Practice, Wiley Blackwell, vol. 8(1-2), pages 61-73, March.
    19. Yuan, Rong & Rodrigues, João F.D. & Tukker, Arnold & Behrens, Paul, 2018. "The impact of the expansion in non-fossil electricity infrastructure on China’s carbon emissions," Applied Energy, Elsevier, vol. 228(C), pages 1994-2008.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:179:y:2016:i:c:p:1304-1320. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.