How Improving Household Efficiency Could Boost the Scottish Economy

Karen Turner, Fiona Riddoch, Gioele Figus

Research output: Book/ReportOther report

Abstract

While European governments continue to invest in energy efficiency as a key tool of energy and climate policy, there is increased interest in the broader economic benefits of energy efficiency in a social and economic context. Recent studies show that, beyond the direct effects on energy use and spending, multiple positive impacts of energy efficiency improvements exist in the wider economy as a whole. Gross Domestic Product (GDP) increases linked to household efficiency enhancements could well be an outcome of both implementing and realising energy efficiency measures. A team from the Centre for Energy Policy (CEP) and Fraser of Allander Institute (FAI) at the University of Strathclyde have used modelling and simulation to explore the economy wide impacts of energy efficiency improvements in households.1 A clear, long lasting stimulus to the economy is triggered by improving the energy efficiency of homes; this is because the disposable income of householders increases as a result of saving money on energy bills. The team used modelling to trace the economic impact of this disposable income increase. The simulation suggested that a spending-led GDP boost can be triggered and could have wider impacts in employment and public budgets. Associated with the increased economic activity will be an increase in energy use that tends to reduce the ultimate level of energy savings from an energy efficiency action. Such an effect is called “rebound”. However, by encouraging spending in low carbon products and services, the erosion of energy savings could be minimised.
LanguageEnglish
Place of PublicationGlasgow
PublisherUniversity of Strathclyde
Number of pages10
Publication statusPublished - 28 Sep 2016

Fingerprint

energy efficiency
Energy efficiency
Economics
energy policy
energy use
Gross Domestic Product
Energy conservation
income
Energy policy
household
economy
economics
economic impact
economic activity
environmental policy
modeling
simulation
Erosion
Lead
erosion

Keywords

  • renewable energy policy
  • climate change
  • Scotland
  • UK energy market
  • economy-wide rebound
  • household energy efficiency
  • climate policy
  • modelling and simulation

Cite this

Turner, Karen ; Riddoch, Fiona ; Figus, Gioele. / How Improving Household Efficiency Could Boost the Scottish Economy. Glasgow : University of Strathclyde, 2016. 10 p.
@book{4610bd15f82c4810be7d36585ee93945,
title = "How Improving Household Efficiency Could Boost the Scottish Economy",
abstract = "While European governments continue to invest in energy efficiency as a key tool of energy and climate policy, there is increased interest in the broader economic benefits of energy efficiency in a social and economic context. Recent studies show that, beyond the direct effects on energy use and spending, multiple positive impacts of energy efficiency improvements exist in the wider economy as a whole. Gross Domestic Product (GDP) increases linked to household efficiency enhancements could well be an outcome of both implementing and realising energy efficiency measures. A team from the Centre for Energy Policy (CEP) and Fraser of Allander Institute (FAI) at the University of Strathclyde have used modelling and simulation to explore the economy wide impacts of energy efficiency improvements in households.1 A clear, long lasting stimulus to the economy is triggered by improving the energy efficiency of homes; this is because the disposable income of householders increases as a result of saving money on energy bills. The team used modelling to trace the economic impact of this disposable income increase. The simulation suggested that a spending-led GDP boost can be triggered and could have wider impacts in employment and public budgets. Associated with the increased economic activity will be an increase in energy use that tends to reduce the ultimate level of energy savings from an energy efficiency action. Such an effect is called “rebound”. However, by encouraging spending in low carbon products and services, the erosion of energy savings could be minimised.",
keywords = "renewable energy policy, climate change, Scotland, UK energy market, economy-wide rebound, household energy efficiency, climate policy, modelling and simulation",
author = "Karen Turner and Fiona Riddoch and Gioele Figus",
year = "2016",
month = "9",
day = "28",
language = "English",
publisher = "University of Strathclyde",

}

How Improving Household Efficiency Could Boost the Scottish Economy. / Turner, Karen; Riddoch, Fiona; Figus, Gioele.

Glasgow : University of Strathclyde, 2016. 10 p.

Research output: Book/ReportOther report

TY - BOOK

T1 - How Improving Household Efficiency Could Boost the Scottish Economy

AU - Turner, Karen

AU - Riddoch, Fiona

AU - Figus, Gioele

PY - 2016/9/28

Y1 - 2016/9/28

N2 - While European governments continue to invest in energy efficiency as a key tool of energy and climate policy, there is increased interest in the broader economic benefits of energy efficiency in a social and economic context. Recent studies show that, beyond the direct effects on energy use and spending, multiple positive impacts of energy efficiency improvements exist in the wider economy as a whole. Gross Domestic Product (GDP) increases linked to household efficiency enhancements could well be an outcome of both implementing and realising energy efficiency measures. A team from the Centre for Energy Policy (CEP) and Fraser of Allander Institute (FAI) at the University of Strathclyde have used modelling and simulation to explore the economy wide impacts of energy efficiency improvements in households.1 A clear, long lasting stimulus to the economy is triggered by improving the energy efficiency of homes; this is because the disposable income of householders increases as a result of saving money on energy bills. The team used modelling to trace the economic impact of this disposable income increase. The simulation suggested that a spending-led GDP boost can be triggered and could have wider impacts in employment and public budgets. Associated with the increased economic activity will be an increase in energy use that tends to reduce the ultimate level of energy savings from an energy efficiency action. Such an effect is called “rebound”. However, by encouraging spending in low carbon products and services, the erosion of energy savings could be minimised.

AB - While European governments continue to invest in energy efficiency as a key tool of energy and climate policy, there is increased interest in the broader economic benefits of energy efficiency in a social and economic context. Recent studies show that, beyond the direct effects on energy use and spending, multiple positive impacts of energy efficiency improvements exist in the wider economy as a whole. Gross Domestic Product (GDP) increases linked to household efficiency enhancements could well be an outcome of both implementing and realising energy efficiency measures. A team from the Centre for Energy Policy (CEP) and Fraser of Allander Institute (FAI) at the University of Strathclyde have used modelling and simulation to explore the economy wide impacts of energy efficiency improvements in households.1 A clear, long lasting stimulus to the economy is triggered by improving the energy efficiency of homes; this is because the disposable income of householders increases as a result of saving money on energy bills. The team used modelling to trace the economic impact of this disposable income increase. The simulation suggested that a spending-led GDP boost can be triggered and could have wider impacts in employment and public budgets. Associated with the increased economic activity will be an increase in energy use that tends to reduce the ultimate level of energy savings from an energy efficiency action. Such an effect is called “rebound”. However, by encouraging spending in low carbon products and services, the erosion of energy savings could be minimised.

KW - renewable energy policy

KW - climate change

KW - Scotland

KW - UK energy market

KW - economy-wide rebound

KW - household energy efficiency

KW - climate policy

KW - modelling and simulation

M3 - Other report

BT - How Improving Household Efficiency Could Boost the Scottish Economy

PB - University of Strathclyde

CY - Glasgow

ER -

Turner K, Riddoch F, Figus G. How Improving Household Efficiency Could Boost the Scottish Economy. Glasgow: University of Strathclyde, 2016. 10 p.