The regional economic effects of energy-transition measures
Public-policy measures aimed at protecting the climate and promoting energy efficiency generally have both intended and unintended effects. In the context of an innovation project, our team worked in close consultation with various prospective clients to develop a tool, the Energy and Climate EconCalculator, that makes it easier for them to anticipate and calculate the economic effects of new legislation and other public-policy initiatives.
Our economy is continuously influenced by new regulatory policies. Business executives in all sectors of our economy need to respond accordingly. And these responses can, in turn, trigger positive or negative economic impulses which have direct or indirect economic effects in a region.
“Our tool is customizable.”
But how exactly are we supposed to estimate these economic effects without considerable expense? In a boost camp, our interdisciplinary team, working in close consultation with prospective clients from city and cantonal administrations, developed a prototype of an Excel tool to provide a solution. Known for short as the “EconCal,” the tool can be used in its standard version or customized to take account of the individual needs of our client.
The versatility of the EconCal
The EconCal calculates the direct costs for stakeholders and estimates the impact on gross value added and jobs in a given region or at the national level. The EconCal can be conveniently adapted to take account of additional effects such as energy consumption and carbon emissions, as well as external effects such as healthcare cost savings. Moreover, the EconCal can calculate the economic significance of renewable energies and energy efficiency for a given region.
“The EconCal and the ability to quickly anticipate the economic impact of the energy transition and specific climate-protection measures is a tremendous benefit for us,” said Mark Sieber, Management Board Member at our Business+Society division, when visiting the team at the boost camp.
EconCal advantages at a glance
The standard version of the EconCal can be adapted to take account of our clients’ individual wishes. In particular, it offers our clients:
- A basis for assessing the impact of policy measures implemented to achieve climate goals and greater energy efficiency
- A basis for prioritizing competing measures
- Talking points for policy negotiations
- Cost transparency
- Continuously up-to-date usage