Impact of building technology, state and community programs on United States employment and wage income

Abstract

As part of measuring the impact of government programs on improving the energy efficiency of the nation`s building stock, the Department of Energy Office of Building Technology, State and Community Programs (BTS) is interested in assessing the economic impacts of its portfolio of programs, specifically the potential impact on national employment and income. This assessment is being done for the first time in FY99 as a supplement to the Government Performance and Results Act (GPRA--formerly, Quality Metrics) estimates of primary energy savings and environmental and direct financial benefits of the BTS programs. The programmatic needs of BTS suggest that a simple, flexible, user-friendly method is needed to derive national employment and income impacts of individual BTS programs. Therefore, BTS funded Pacific Northwest National Laboratory (PNNL) to develop a special-purpose version of the Impact Analysis for Planning (IMPLAN) national input-output model (Minnesota IMPLAN Group, Inc. 1997) specifically to estimate the employment and income effects of building energy technologies. The special-purpose version of the IMPLAN model used in this study is called ImBuild. Extensive documentation and a user`s guide are provided in Scott et al. (1998). Compared with simple economic multiplier approaches, such as the published multipliers from the Department of Commerce Regional Input-Output Modeling System (RIMS 2), ImBuild allows for more complete and automated analysis of the economic impacts of energy efficiency investments in buildings. ImBuild is also easier to use than existing macroeconomic simulation models. In this report, the authors use the ImBuild model to calculate the impact of all 32 BTS programs reported in the BTS GPRA Metrics Estimates, FY99 Budget Request, December 19, 1997.