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The economic impact of energy saving retrofits of residential and public buildings in Croatia

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  • Mikulić, Davor
  • Bakarić, Ivana Rašić
  • Slijepčević, Sunčana

Abstract

The purpose of this paper is to estimunate the impact of energy saving investment in residential and public buildings in Croatia for the period 2015–2020. The aim is to assess the overall socio-economic impact of energy saving renovation measures defined in Croatian strategic documents in terms of the direct, indirect and induced growth of gross value added, employment and government revenues. An estimate of the avoided costs of air pollution is also included. The overall economic impact assessment is based on an input-output methodology. From the point of view of individual investors, the benefits in terms of reduced future expenses related to energy products are usually below energy efficient renovation investment costs, making an investment financially viable only if government support is provided. If the benefits for society as a whole are included, energy efficient renovation could be assessed as viable even in the short-run. Energy saving retrofits of residential and public buildings positively contribute to economic growth, employment and protection of the environment. Because of economic growth, the tax revenues induced by these investments could compensate for government expenditures, and the overall impact on the public deficit is expected to be neutral even in the short-run.

Suggested Citation

  • Mikulić, Davor & Bakarić, Ivana Rašić & Slijepčević, Sunčana, 2016. "The economic impact of energy saving retrofits of residential and public buildings in Croatia," Energy Policy, Elsevier, vol. 96(C), pages 630-644.
    • Handle: RePEc:eee:enepol:v:96:y:2016:i:c:p:630-644
    DOI: 10.1016/j.enpol.2016.06.040
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    3. Jie, Pengfei & Zhang, Fenghe & Fang, Zhou & Wang, Hongbo & Zhao, Yunfeng, 2018. "Optimizing the insulation thickness of walls and roofs of existing buildings based on primary energy consumption, global cost and pollutant emissions," Energy, Elsevier, vol. 159(C), pages 1132-1147.
    4. Díaz, Julián Arco & Ramos, José Sánchez & Delgado, M. Carmen Guerrero & García, David Hidalgo & Montoya, Francisco Gil & Domínguez, Servando Álvarez, 2018. "A daily baseline model based on transfer functions for the verification of energy saving. A case study of the administration room at the Palacio de la Madraza, Granada," Applied Energy, Elsevier, vol. 224(C), pages 538-549.
    5. Sunčana Slijepčević & Davor Mikulić & Kristijan Horvat, 2019. "Evaluation of the Cost-Effectiveness of the Installation of Heat-Cost Allocators in Multifamily Buildings in Croatia," Energies, MDPI, vol. 12(3), pages 1-20, February.
    6. Mališa Đukić & Margareta Zidar, 2021. "Sustainability of Investment Projects with Energy Efficiency and Non-Energy Efficiency Costs: Case Examples of Public Buildings," Sustainability, MDPI, vol. 13(11), pages 1-15, May.
    7. Jie, Pengfei & Yan, Fuchun & Li, Jing & Zhang, Yumei & Wen, Zhimei, 2019. "Optimizing the insulation thickness of walls of existing buildings with CHP-based district heating systems," Energy, Elsevier, vol. 189(C).
    8. Krarti, Moncef & Dubey, Kankana & Howarth, Nicholas, 2019. "Energy productivity analysis framework for buildings: a case study of GCC region," Energy, Elsevier, vol. 167(C), pages 1251-1265.
    9. Theofano Fotiou & Pantelis Capros & Panagiotis Fragkos, 2022. "Policy Modelling for Ambitious Energy Efficiency Investment in the EU Residential Buildings," Energies, MDPI, vol. 15(6), pages 1-29, March.
    10. Apostolos Arsenopoulos & Vangelis Marinakis & Konstantinos Koasidis & Andriana Stavrakaki & John Psarras, 2020. "Assessing Resilience to Energy Poverty in Europe through a Multi-Criteria Analysis Framework," Sustainability, MDPI, vol. 12(12), pages 1-22, June.

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