Economic and Environmental Impacts of Energy Efficiency Investment on Local Manufacturers

Document Type

Conference Paper

Publication Date


Publication Source

Proceedings of the ASME 2015 International Design Engineering Technical Conferences and Computers and Information in Engineering Conference


The main goal of this study is to estimate the community-wide economic and environmental impacts of energy efficiency investment on the local manufacturing using data with different granularity. A systematic framework is developed by using multiple scale/layer of data. Result shows that a $14M investment in HVAC upgrade to reduce energy and cost in the economy of the Montgomery County, Ohio can result in a total local economic impact of $22M, stemming from the $14.5M coming from direct impact, $2.8M coming from indirect impact, and $4.7M coming from induced impacts. Job creation over the investment period yields a total of 106 jobs.

Analysis provides insight into the most important types of economic effects to the local industries. From an environmental perspective, short term economy-wide carbon dioxide emissions increase because of the increased community-wide economic activities spurred by the production from local manufacturers and installation of energy efficiency measures, however the resulting energy savings provide continuous carbon dioxide reduction for various target savings.




American Society of Mechanical Engineers

Place of Publication

Boston, MA