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20% by 2020? Economy-wide impacts of energy efficiency improvement in Germany

Author

Listed:
  • Dr. Ulrike Lehr

    (GWS - Institute of Economic Structures Research)

  • Dr. Christian Lutz

    (GWS - Institute of Economic Structures Research)

  • Dr. Martin Pehnt

    (GWS - Institute of Economic Structures Research)

  • Udo Lambrecht

    (GWS - Institute of Economic Structures Research)

  • Friedrich Seefeldt

    (GWS - Institute of Economic Structures Research)

  • Marco Wünsch

    (GWS - Institute of Economic Structures Research)

  • Barbara Schlomann

    (GWS - Institute of Economic Structures Research)

  • Tobias Fleiter

    (GWS - Institute of Economic Structures Research)

Abstract

The paper presents results of the implementation of an efficiency strategy in Germany until 2020 which is focused on cost-effective measures. The efficiency measures are calculated in bottom-up models and translated into a top-down macro-economic model. The comparison to a business as usual simulation shows some economy-wide rebound effects of about 17% of the overall energy savings. The analysis is limited to 2020. Given that an efficiency strategy is a long-term strategy, this puts the results on the rather conservative side. The results clearly show that improved energy efficiency results in a variety of positive effects on the economy and the environment. These range from reduced greenhouse gas emissions to improved competitiveness of firms and budget savings for consumers to economy wide impacts like additional employment and economic growth. Even the consideration of rebound effects did not change this picture significantly. Thus, exploiting the huge potential stemming from cost-effective efficiency measures should have high priority for the design of energy and climate policies.

Suggested Citation

  • Dr. Ulrike Lehr & Dr. Christian Lutz & Dr. Martin Pehnt & Udo Lambrecht & Friedrich Seefeldt & Marco Wünsch & Barbara Schlomann & Tobias Fleiter, 2011. "20% by 2020? Economy-wide impacts of energy efficiency improvement in Germany," GWS Discussion Paper Series 11-2, GWS - Institute of Economic Structures Research.
    • Handle: RePEc:gws:dpaper:11-2
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    References listed on IDEAS

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    1. Meyer, Bernd & Distelkamp, Martin & Wolter, Marc Ingo, 2007. "Material efficiency and economic-environmental sustainability. Results of simulations for Germany with the model PANTA RHEI," Ecological Economics, Elsevier, vol. 63(1), pages 192-200, June.
    2. Taylor, Peter G. & d'Ortigue, Olivier Lavagne & Francoeur, Michel & Trudeau, Nathalie, 2010. "Final energy use in IEA countries: The role of energy efficiency," Energy Policy, Elsevier, vol. 38(11), pages 6463-6474, November.
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    Cited by:

    1. Hartwig, Johannes & Kockat, Judit & Schade, Wolfgang & Braungardt, Sibylle, 2017. "The macroeconomic effects of ambitious energy efficiency policy in Germany – Combining bottom-up energy modelling with a non-equilibrium macroeconomic model," Energy, Elsevier, vol. 124(C), pages 510-520.

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    More about this item

    Keywords

    energy efficiency; bottom up scenario analysis; climate policy;
    All these keywords.

    JEL classification:

    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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