Energy efficiency retrofits in buildings: Economic evaluation of policy instruments supporting green economy transformation

The buildings should be made more energy-efficient to achieve Italy's decarbonization and green economy objectives. This research evaluates the economic and labor-market impacts of the energy-efficiency retrofits under the 2024-2040 National Integrated Energy and Climate Plan. The study estimates the direct and indirect employment effects of renewable energy technology included in building retrofit schemes using input-output modeling and a shadow-wage monetization approach. These effects are considered in building conversion plans that include energy-saving measures such as better insulation, more efficient HVAC systems, and solar panels on the roof. The findings show that the use of renewable energy linked to retrofitting can generate numerous jobs. For example, photovoltaic systems can deliver up to 377 person-years of work per TWh of construction, and biomass systems can provide 341 person-years of work per TWh of O&M, the highest of any technology. The four sensitivity cases illustrate the relationships among import dependency, local production, declining prices, and an active labor market and their effects on economic performance. In general, this allows us to conclude that energy policies encouraging retrofitting can optimize job markets, make energy more secure, and enable economic growth to develop in a low-carbon manner. This demonstrates the significance of integrating building retrofits into national energy planning.