$18 Trillion Windfall: Health And Productivity Benefits of Efficiency Top Energy Savings - by Joe Romm

A major report by the global body responsible for energy analysis finds the total benefits from energy efficiency upgrades equals — and often exceeds — the energy savings. The 232-page International Energy Agency report upends decades of conventional thinking about efficiency, and should lead governments and corporations to sharply increase their efficiency budget.

The most noteworthy conclusion of Capturing the Multiple Benefits of Energy Efficiency may be that “the uptake of economically viable energy efficiency investments has the potential to boost cumulative economic output through 2035 by USD 18 trillion,” which is larger than the current size of the U.S. economy!

Specifically, the report finds that green building design can achieve health benefits — including reduced medical costs and higher worker productivity — “representing up to 75% of overall benefits.” That is, the non-energy benefits of energy efficiency upgrades can be three times the size of the energy savings.

This study also finds that when the value of productivity and operational benefits of industrial efficiency measures were factored into “traditional internal rate of return calculations, the payback period for energy efficiency measures dropped from 4.2 to 1.9 years.” Payback time was cut in half.

$18 Trillion Windfall: Health And Productivity Benefits of Efficiency Top Energy Savings - by Joe Romm