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12 November 2012

Boost the Economy with Energy Efficiency Investment

A new report from Consumer Focus shows that investing money raised through carbon taxes in a major energy efficiency programme is one of the best ways to create jobs and boost the economy, while also tackling fuel poverty. The report 'Jobs, growth and warmer homes' was published on Friday 9 November. 

The research shows that significant Government energy efficiency infrastructure investment could:

  • Generate up to 71,000 jobs and boost GDP by 0.2 per cent by 2015 and create up to 130,000 jobs by 2027
  • Lift up to nine out of ten households out of fuel poverty, reducing energy bills in all treated homes by at least £200 per year
  • Cut household energy consumption by 5.4 per cent by 2027 and quadruple the impact of the government’s energy savings schemes – Green Deal and Energy Company Obligation
  • Cut overall carbon emissions by 1.1 per cent, including household emissions reduced by around 5.6% by 2027.

The report shows that more jobs and greater economic growth could be generated through energy efficiency programmes than by an equivalent investment in other Government spending programmes, or by cuts in VAT or fuel duty. 

Investing in energy efficiency has other advantages over alternative options. It is fast to mobilise, and would stimulate economic activity and jobs in all regions of the UK. It employs workers in construction and related sectors, which have been hit hard by the recession. 

Consumer Focus, and a coalition of organisations, argue that a proportion of funds generated by carbon taxes, should be used for targeted energy efficiency schemes. The new report details a range of funding options from using 35 per cent of carbon tax revenue to 95 per cent and how this could cut fuel poverty by 75 per cent to 87 per cent depending on the level of investment.

 

 

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