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Resource: Evaluating the Economic Stimulus of Investing in Energy Efficiency Measures in Fuel Poor Homes

Name of organisation: Verco and Cambridge Econometrics

Type of ressource: analysis/ technical report

Addressed barriers:

  • technical
  • financial
  • skills/ knowledge gap
  • legislative
  • low motivation
  • managerial

Addressed users:

  • public decision maker

Language:

  • English

Process stage:

  • national/ regional strategy development
  • asset management

Contact:

Electricity Saving Products Funding Incentives Other Renewables Asset Management

Description

This report challenges the assumption that we cannot afford to tackle fuel poverty. It argues that there is a triple win available of warmer homes, greater energy efficiency and economic growth if we can use carbon taxes revenue to benefit consumers, and fuel poor households in particular.
Over the next 15 years £63 billion will be added to consumer energy bills through the carbon floor price and EU Emissions Trading System (ETS). That is an average of £4 billion a year not available for consumers to spend keeping warm, or for companies to invest in cleaner generation and smart grids. If we were to direct this £4 billion toward a major programme to improve the energy efficiency of our homes we could make homes warmer, more affordable to heat and take a major step toward our legally binding carbon reduction targets.
Cambridge Econometrics and Verco’s research shows that an energy efficiency programme is also a more effective way to stimulate the economy – compared to likely alternatives like cutting VAT, reducing fuel duty or investing in capital infrastructure projects such as building roads. It shows that such a programme would also have substantial economic benefits. It would create 71,000 jobs by 2015 and boost gross domestic product (GDP) by 0.20 per cent.

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