Making the case for supporting broad energy efficiency programmes: impacts on household incomes and other economic benefits

Research output: Working paperDiscussion paper

Abstract

In recent years, an overly narrow focus on rebound effects has limited the extent of researcher and policy attention afforded to the wider multiple benefits of increased energy efficiency. The objective of this paper is to focus policy attention on the sustained added value to the economy that is created as result of improving energy efficiency in the residential sector. Governments around the world are committed to increasing energy efficiency more generally, but often focus public support in low income households where energy poverty is a particular concern. However, governments operate in a context of multiple objectives where energy efficiency is expected to deliver significant reductions
in carbon emissions alongside sustainable economic development. We use a UK CGE model to consider the general effects of supporting increases in energy efficiency in residential energy use. Our results demonstrate that the increase in GDP, and economic activity more generally, triggered by increased energy efficiency delivers more in terms of increased household incomes than the efficiency improvement itself. We find that the more wide ranging the boost to energy efficiency, the greater the economic expansion and associated returns are likely to be, and the less the means of financing through public budgets will erode the benefits over time.
LanguageEnglish
Place of PublicationGlasgow
PublisherUniversity of Strathclyde
Pages1-32
Number of pages32
Publication statusPublished - 12 Dec 2016

Publication series

NameUniversity of Strathclyde Discussion Paper in Economics
PublisherUniversity of Strathclyde
No.16-16

Fingerprint

household income
Energy efficiency
energy
efficiency
Economics
economics
public budget
Household income
Economic benefits
Sustainable development
public support
value added
low income
Carbon
poverty
economy

Keywords

  • energy efficiency
  • energy demand
  • fuel poverty
  • multiple benefits
  • general equilibrium

Cite this

Figus, G., Turner, K., McGregor, P., & Katris, A. (2016). Making the case for supporting broad energy efficiency programmes: impacts on household incomes and other economic benefits. (pp. 1-32). (University of Strathclyde Discussion Paper in Economics; No. 16-16). Glasgow: University of Strathclyde.
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Figus, G, Turner, K, McGregor, P & Katris, A 2016 'Making the case for supporting broad energy efficiency programmes: impacts on household incomes and other economic benefits' University of Strathclyde Discussion Paper in Economics, no. 16-16, University of Strathclyde, Glasgow, pp. 1-32.

Making the case for supporting broad energy efficiency programmes : impacts on household incomes and other economic benefits. / Figus, Gioele; Turner, Karen; McGregor, Peter; Katris, Antonios.

Glasgow : University of Strathclyde, 2016. p. 1-32 (University of Strathclyde Discussion Paper in Economics; No. 16-16).

Research output: Working paperDiscussion paper

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Figus G, Turner K, McGregor P, Katris A. Making the case for supporting broad energy efficiency programmes: impacts on household incomes and other economic benefits. Glasgow: University of Strathclyde. 2016 Dec 12, p. 1-32. (University of Strathclyde Discussion Paper in Economics; 16-16).