Economic effects of energy efficiency improvements in the Finnish building stock

This study estimates the economic effects of investing in energy efficiency in buildings on a national level. First conservation potentials in space heating for two different scenarios with different levels of investment in energy efficiency are quantified. This was done relying on statistical data and future projections of the development of the building stock. Then economic modeling was used to estimate the effects on energy sector and the economy at large. The results show that a rather modest increase resulting in a few percent rise in annual construction and renovation investments can decrease total primary energy consumption 3.8–5.3% by 2020 and 4.7–6.8% by 2050 compared to a baseline scenario. On the short term a slight decrease in the level of GDP and employment is expected. On the medium to long term, however, the effects on both would be positive. Furthermore, a significant drop in harmful emissions and hence external costs is anticipated. Overall, a clear net benefit is expected from improving energy efficiency.