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Municipal Added Value through Solar Power Systems in the City of Freiburg

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  • Simon Funcke

    () (Centre for Renewable Energies, University of Freiburg, Tennenbacher Straße 4, 79106 Freiburg, Germany)

Abstract

The transformation of the conventional energy system towards renewable energies has entailed an increasing decentralization of energy generation in Germany, as the production units are smaller and draw on regional potentials. This can result in positive socio-economic effects in regions where the potential is exploited. The focus of this paper lies on evaluating existing methods and developing new ones, which can be used to determine local added value through renewable energy systems. The methods were required to cover direct as well as induced municipal added value effects and to include all steps of the examined value chain. A combination of methods was tested in a case study for the solar power system value chain in the city of Freiburg ( ca. 220,000 inhabitants). The added value through this sector in the year 2009 was calculated at 30.8 million euros through direct effects and 6.2 million euros through induced effects. This total municipal added value of 37 million euros can be converted into roughly 1,500 jobs within the city boundaries. Based on some conservative assumptions, these numbers should be considered as minimum values.

Suggested Citation

  • Simon Funcke, 2012. "Municipal Added Value through Solar Power Systems in the City of Freiburg," Sustainability, MDPI, Open Access Journal, vol. 4(5), pages 1-21, May.
  • Handle: RePEc:gam:jsusta:v:4:y:2012:i:5:p:819-839:d:17488
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    References listed on IDEAS

    as
    1. 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.
    2. del Río, Pablo & Burguillo, Mercedes, 2008. "Assessing the impact of renewable energy deployment on local sustainability: Towards a theoretical framework," Renewable and Sustainable Energy Reviews, Elsevier, vol. 12(5), pages 1325-1344, June.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    municipal added value; value chain analysis; photovoltaic industry;

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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