Economic and Environmental Impacts of Energy Efficiency Investment on Local Manufacturers

Abstract

The main goal of this study is to estimate the community-wide economic and environmental impacts of energy efficiency investment on the local manufacturing using data with different granularity. A systematic framework is developed by using multiple scale/layer of data. Result shows that a $14M investment in HVAC upgrade to reduce energy and cost in the economy of the Montgomery County, Ohio can result in a total local economic impact of $22M, stemming from the $14.5M coming from direct impact, $2.8M coming from indirect impact, and $4.7M coming from induced impacts. Job creation over the investment period yields a total of 106 jobs. Analysis provides insight into the most important types of economic effects to the local industries. From an environmental perspective, short term economy-wide carbon dioxide emissions increase because of the increased community-wide economic activities spurred by the production from local manufacturers and installation of energy efficiency measures, however the resulting energy savings provide continuous carbon dioxide reduction for various target savings.

A sequential input–output framework to analyze the economic and environmental implications of energy policies: Gas taxes and fuel subsidies

“…(3) , where, e is the physical amount of the environmental loads (emissions or resource consumptions) matrix and R is the matrix of physical environmental loads per dollar production of n sectors [21,37,38]. The vector x can be derived from Eq.…”

Impact evaluation of an energy efficiency network policy programme for industrial SMEs in Sweden

“…Historically, SMEs have been scarcely researched (Ramírez et al, 2005), but the field is now growing, e.g. ex-post evaluations of energy programmes (Fleiter et al, 2012a;Paramonova and Thollander, 2016b), barriers to and drivers for energy efficiency (Trianni et al, 2016;Cagno and Trianni, 2013), resource efficiency (Choi et al, 2019), life cycle approaches and sustainable manufacturing (Choi et al, 2018(Choi et al, , 2013. The world's largest energy efficiency policy programme for SMEs has been the American IAC, which also has been the focus of an array of scientific papers, e.g.…”

“…The world's largest energy efficiency policy programme for SMEs has been the American IAC, which also has been the focus of an array of scientific papers, e.g. macro-economic analyses for quantification of sustainability impacts (Errigo et al, 2022) and for energy efficiency recommendations related to thermal systems (Kapp et al, 2022), savings and impacts of deployed energy efficiency in combustion systems (McLaughlin et al, 2021), as well as a study of economic and environmental impacts, on community level, using local manufacturing data (Choi et al, 2015) Despite the high energy efficiency potential, the full potential is not realized due to several barriers to implementation of energy efficiency measures. The barriers in industry vary based on e.g., geographic location, company size, sector (Sorrell et al, 2011).…”