The social return on investment in the energy efficiency of buildings in Germany
The German government has developed a variety of policy instruments intended to reduce national CO2 emissions. These instruments include a programme administered by KfW bank, which aims at improving the energy efficiency of buildings. It provides attractive credit conditions or subsidies to finance refurbishment measures which improve the energy efficiency of buildings significantly. The refurbishment programme leads to a reduction in energy use, which benefits private investors by reducing their energy bills. In order to estimate whether the programme benefits society as a whole, additional effects must be taken into account, such as the amount of employment generated and the impact on the public budget. The aim of this paper is to evaluate the social benefits of the German CO2 refurbishment programme for the years 2005-2007. An extended input-output model is used to estimate the effect of the refurbishment works on public revenue via taxes and social security contributions. The value of avoided CO2 emissions is approximated using a range of marginal damage estimates from the literature. From these social benefits, the programme cost is deducted. The net social benefit thus computed turns out to be positive. This finding suggests that the refurbishment programme is a reasonable investment of public funds.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ben Kriechel & Thomas Ziesemer, 2009.
"The environmental Porter hypothesis: theory, evidence, and a model of timing of adoption,"
Economics of Innovation and New Technology,
Taylor & Francis Journals, vol. 18(3), pages 267-294.
- Ziesemer, Thomas & Kriechel, Ben, 2007. "The Environmental Porter Hypothesis: Theory, Evidence and a Model of Timing of Adoption," MERIT Working Papers 024, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
- Pedregal, D.J. & Dejuán, O. & Gómez, N. & Tobarra, M.A., 2009. "Modelling demand for crude oil products in Spain," Energy Policy, Elsevier, vol. 37(11), pages 4417-4427, November.
- Johansson-Stenman, Olof, 2005. "Global environmental problems, efficiency and limited altruism," Economics Letters, Elsevier, vol. 86(1), pages 101-106, January.
- Johansson-Stenman, Olof, 2004. "Global environmental problems, efficiency and limited altruism," Working Papers in Economics 139, University of Gothenburg, Department of Economics.
- Power, Anne, 2008. "Does demolition or refurbishment of old and inefficient homes help to increase our environmental, social and economic viability?," Energy Policy, Elsevier, vol. 36(12), pages 4487-4501, December.
- repec:dgr:umamer:2005008 is not listed on IDEAS
- Claudia Kemfert, 2007. "Klimawandel kostet die deutsche Volkswirtschaft Milliarden," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 74(11), pages 165-169.
- repec:dgr:umamer:2003011 is not listed on IDEAS
- repec:ner:maastr:urn:nbn:nl:ui:27-19334 is not listed on IDEAS
- Erdmenger, Christoph & Lehmann, Harry & Müschen, Klaus & Tambke, Jens & Mayr, Sebastian & Kuhnhenn, Kai, 2009. "A climate protection strategy for Germany--40% reduction of CO2 emissions by 2020 compared to 1990," Energy Policy, Elsevier, vol. 37(1), pages 158-165, January.
- repec:dgr:unumer:2007024 is not listed on IDEAS
- Ravetz, Joe, 2008. "State of the stock--What do we know about existing buildings and their future prospects?," Energy Policy, Elsevier, vol. 36(12), pages 4462-4470, December.
- Roberts, Simon, 2008. "Altering existing buildings in the UK," Energy Policy, Elsevier, vol. 36(12), pages 4482-4486, December.
- Siller, Thomas & Kost, Michael & Imboden, Dieter, 2007. "Long-term energy savings and greenhouse gas emission reductions in the Swiss residential sector," Energy Policy, Elsevier, vol. 35(1), pages 529-539, January.
- Tobias Kronenberg, 2008. "Should We Worry About The Failure Of The Hotelling Rule?," Journal of Economic Surveys, Wiley Blackwell, vol. 22(4), pages 774-793, 09. Full references (including those not matched with items on IDEAS)