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How can we establish the most effective energy efficiency governance structures? Ensuring an energy governance system addressing inequalities, safeguarding a universal inclusive dialogue (versus bilateral, regional or multilateral only) while dealing with transit, security, trade, investment, ensuring climate action and more, is key and is the topic of below projects and reports.
The IEECP Social Cost-Benefit Analysis (SCBA) tool was developed to quantify the implementation of different types of policies promoting energy efficiency. The model is a MS excel-based model, highly customisable, and can greatly help regional authorities and policymakers in understanding which type of intervention would yield the best results depending on not only economic factors but also social ones.
Two different types of CBA can be conducted utilising the developed tool, namely:
The CBA aims to examine the social profitability of the examined energy efficiency projects, justifying the potential utilization of specific financial schemes (such as subsidies) in relation with the results of the financial analysis. The conduction of the financial analysis and the social CBA leads to the calculation of two different indicators, namely the financial Net Present Value (NPV) (or the financial Internal Rate of Return (IRR)) and the social NPV (or the social IRR respectively). Another considered metric is the Benefit-to-Cost Ratio (B/C Ratio).
The SCBA is conducted by considering different externalities. The latter are parameters that quantify qualitative elements related to the implementation and consumption of different types of fuels. The externality values consider four different types of externalities, namely: environmental and health impacts; Gross Domestic Product (GDP) impacts; multiple benefits; and the increase in building value. By quantifying these aspects, it is possible to perform a CBA not purely focused on economic impacts, hence a SCBA. Furthermore, in view of the upcoming policy changes due to the ETS2 for households and the additional costs for heating when using gas, oil and LPG, the model incorporates these new prices in the calculations.
The developed CBA tool evaluates five main comparable scenarios across the Regio1st regions, in addition to a baseline scenario. The scenarios include building renovations, heat pump implementation, and net-zero energy buildings implementation.
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