Measuring the Socioeconomic and Environmental Effects of Energy Efficiency Investments for a More Sustainable Spanish Economy

We present here an application of a multisector economic model to simulate the impact of investing in energy-efficiency-related sectors. Given the value chain of energy production shows several aspects to be improved, this paper intends to identify the economic sectors where investment should be allocated in order to reach the targeted energy efficiency levels in the overall economic system. We expect that an improvement in energy efficiency will bring a fall in electricity demand. Simulating these impacts will enable an assessment of the macroeconomic effects of such demand-side changes in Spain. For simulation purposes, we will use input-output methodology, based on data from a Spanish input-output table from the year 2012 that we have constructed. The scenario used for modeling has been obtained from the objectives proposed by the European Union for 2030, specifically the one promoting an increase to at least a 27% increase in energy efficiency compared with the business-as-usual scenario. This demand-side model enables us to measure the potential sector-by-sector growth of the Spanish economy and to calculate households' expected savings in energy bills due to the implementation of energy efficiency measures. The impacts of employment and CO2 emissions are also quantified as a result of the investments aimed at improving energy efficiency.