Beyond energy savings – quantifying the multiple impacts of energy efficiency improvements

Panel: 4. Monitoring and evaluation for a wise, just and inclusive transition

Authors:
Chun Xia-Bauer, Wuppertal Institut for Climate Environment and Energy, Germany
Felix Suerkemper, Wuppertal Institute for Climate, Environment and Energy, Germany
Florin Vondung, Wuppertal Institut for Climate Environment and Energy, Germany

Abstract

There is still significant potential to improve energy efficiency in all sectors. Facing the often cited “energy efficiency gap”, even the profitable potential is not fully exploited. Highlighting and quantifying the additional values of energy efficiency measures and investments considering the multiple non-energy impacts could help closing this gap and facilitate energy-relevant decisions and policy-making. A main barrier to the systematic consideration of Multiple Impacts (MI) of energy efficiency in policy design is the fact that these are often quantified with comprehensive modelling approaches, which may be time and resource consuming. New tools for the quantification of MI are thus required which are easy to use, flexible enough to adapt to different evaluation purposes and applicable at different governance levels. Further, they must be based on a sufficiently sound scientific basis to provide reliable and accurate results. Finally, a tool must cover the most relevant indicators in the overarching categories economic, social and environmental impacts.

The H2020 project Multiple Impact CAlculation Tool (MICAT) aims at the development of a scientifically-sound online-tool that addresses these needs and is available for free. The tool will be flexible enough to enable a quantification and monetisation of MI at three different governance levels (local, national and EU) to address a broad target group, allowing impacts analyses to be carried out ex-ante and ex-post and on the basis of top-down scenarios and bottom-up data (e.g., derived from specific energy efficiency policies). Finally, the MICAT tool will include the option for the tool user to perform a comprehensive Cost-Benefit Analysis (CBA) from a societal perspective.

MI analysed in MICAT range in the social impact category from energy poverty alleviation to human health effects due to improved indoor climate and reduced outdoor air pollution. Impacts in the economic category are differentiated by microeconomic (e.g., industrial productivity, import dependency, energy security) and macroeconomic impacts (e.g., GDP and employment effects, public budget impact, energy intensity). Environmental impacts include in particular material resource savings, reduction in air pollution and GHG savings.

Due to the high flexibility requirement of the MICAT tool, the specific MI will be quantified based on impacts factors or functions, i.e., for each indicator assessed a specific impact factor or equation is developed, which is directly linked to input parameters (e.g., energy savings, investments, stock data of technologies) of the respective scenarios or policies assessed. In order to aggregate impacts with different physical units, compare their magnitude, and integrate them into CBA, the conversion into one common (monetary) metric is necessary. The objective is to monetise as many MI as possible and to include them into the CBA.

The approach for impact quantification is exemplified looking at selected indicators in the social dimension for energy poverty and health. An example of health impact is avoided asthma cases due to the reduced exposure to indoor dampness. A large number of studies show that there is a consistent association between indoor dampness and asthma cases. To attribute asthma prevalence to the exposure to dampness, the standard method for assessing the Environmental Burden of Disease (EBD) is applied. In addition, assumptions are made between potential indoor dampness reduction and each retrofits type based on expert judgement. In terms of energy poverty impacts, the approach focuses to assess the positive financial and physical effects of residential building renovations on energy poor households using a set of established indicators. Adjustable assumptions are made to account for the crucial role of policy frameworks and market conditions for the distribution of building renovations and their costs and benefits.