Employment generation from energy efficiency programmes: enhancing political and social acceptability

Panel: Panel 1: Assessment of Energy Efficiency Policy

Authors:
Joanne Wade, Association for the Conservation of Energy
Andrew Warren, Association for the Conservation of Energy

Abstract

Energy efficiency investment programmes can create employment. Action co-ordinated at the European level has the most positive impact, but actions at the national and local level can also have beneficial employment effects. Although providing solutions to the problems of unemployment will never be a key aim of energy efficiency policy, the positive employment side-effects of policies and programmes may prove useful in building support for energy efficiency investments across government departmental boundaries. This is particularly the case where programmes can demonstrate positive impacts for social groups currently disadvantaged in the employment market (for example those with low skills and few qualifications, living in economically deprived areas).

This paper presents the results of a SAVE-funded study of the employment impacts of energy efficiency investment programmes in nine EU Member States. Based on detailed case studies of 44 individual programmes and modelling of the wider effects, the study investigated short and long-term impacts, both on total numbers of employed persons and on the skills mix utilised in the economy.

The study results are summarised and key points highlighted. Limitations of the study are identified and suggestions are made as to the key areas where further research effort would be beneficial.

Implications of the study findings for decision-makers at the local, national and EU level are suggested, set within the framework of promoting environmentally and socially sustainable economic development. Issues such as the differing impacts of various policy types and the potential for replicability of impacts across national boundaries are discussed.