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Macroeconomic effects of energetic building retrofit: input-output sensitivity analyses

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  • Johannes Hartwig
  • Judit Kockat

Abstract

Energy efficiency measures in buildings are essential for climate protection, but are not always recognized by the investor in common profitability calculations. To provide a quantitative scientific base for policymakers, the aim is to identify and quantify the impact of these measures on Germany’s economy with a static open input-output model. Moreover, this investigation analyses how much the chosen base year affects the calculated macroeconomic impact, to obtain a clearer view of involved dynamics. The energy efficiency measures in buildings and their impact on energy demand and investments were simulated in the bottom-up building model INVERT/EE-Lab up to 2020. The methodological addition of this research is to identify and map the resulting impulses to the according macroeconomic sectors. Based on this stimulus a static input-output analysis is conducted using a range of base years. The results show that efficiency measures in buildings have a significant positive effect on macroeconomic key figures. The magnitude of the calculated impact depends on chosen base year data and varies for value added and employment. As a conclusion, the macroeconomic impact constitutes a co-benefit supporting the economic attractiveness of energy efficiency. However, studies based on a single base year dataset like many computable general equilibrium models may need to reflect the errors caused by that choice.

Suggested Citation

  • Johannes Hartwig & Judit Kockat, 2016. "Macroeconomic effects of energetic building retrofit: input-output sensitivity analyses," Construction Management and Economics, Taylor & Francis Journals, vol. 34(2), pages 79-97, February.
  • Handle: RePEc:taf:conmgt:v:34:y:2016:i:2:p:79-97
    DOI: 10.1080/01446193.2016.1144928
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    1. Leontief, Wassily & Duchin, Faye, 1986. "The Future Impact of Automation on Workers," OUP Catalogue, Oxford University Press, number 9780195036237.
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    Cited by:

    1. 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.
    2. Hartwig, Johannes & Kockat, Judit & Schade, Wolfgang & Braungardt, Sibylle, 2017. "The macroeconomic effects of ambitious energy efficiency policy in Germany – Combining bottom-up energy modelling with a non-equilibrium macroeconomic model," Energy, Elsevier, vol. 124(C), pages 510-520.

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