Valorization of economic effects from the programme of energy renovation of public buildings in Croatia

Abstract

The aim of this paper is to determine the socioeconomic effects of investing in an energy-efficient renovation of public buildings in the Republic of Croatia. Valorization of economic effects is based on the gross value added and jobs that were induced by energy renovation. Analysis techniques of an open and closed input-output model were used for the quantification of multiplicative economic effects connected to the energy renovation. While the open input-output model quantifies indirect effects, the model closed by personal expenses quantifies induced effects which are the result of the income growth in the household sector induced by direct and indirect effects of investments in the renovation of public buildings. The results indicate positive economic effects of investing in the energy renovation of public building. Total effects include short-term effects, during the implementation period of the renovation project, as well as long-term effects related to the energy savings and redirecting the resources to another category of final expenses. Besides having a positive effect on the construction sector, energy renovation encourages the activity of other sectors involved in the value-added chain of the construction industry.

Investments in Croatian RES Plants and Energy Efficient Building Retrofits: Substitutes or Complements?

“…Based on the optimized building envelope parameters, heating annual savings in an office building can reach 70% and cooling savings up to 40% [32]. The positive effects of energy buildings renovation in Croatia on climate change, especially in the reduction of energy consumption and the reduction of CO 2 have been confirmed in [4,33]. In terms of employment effects, EUR 1 million of investments in multi apartment building renovations induced 32, while EUR 1 million of investments in public buildings induced 35, jobs in the Croatian economy.…”

“…In the case of less technologically developed economies, such as Croatia, domestic production of complex equipment is underdeveloped and most of the components used in construction of RES plants are imported. The cost structure of investments distributed by domestic sectors and imports is based on the results of an investors' survey as described in [4] for building retrofits and in [19] for RES plants. Results of the IO model indicates that the same value of investments in RES plants induce relatively less economic benefits in comparison to retrofitting in Croatia (Table 2).…”

“…Improved energy efficiency through building renovation also contributes to economic activity, employment and quality of life and health. The economic effects of renovation are also explored in [3,4].…”

The Impact of Transportation on the Croatian Economy: The Input–Output Approach

“…In Mikulić et al (2018), wind-power plant deployment effects were quantified, where small multiplicative ones have been found due to the high import content of high-tech products required in those plants. Mikulić et al (2020) valorized economic effects from the energy renovation program of public buildings in Croatia and by application of closed IO model estimated investment multiplier at 2.5. As the analysis of the Croatian transportation sector's significance has not yet been adequately evaluated, there is a need to provide a quantitative analysis of its total effects on the Croatian economy.…”