Socio-macroeconomic impacts of meeting new build and retrofit UK building energy targets to 2030: a MARCO-UK modelling study

Jaime Nieto, Paul Brockway and John Barrett

Abstract

Reducing energy consumption in UK buildings is a key part of measures required to meet Net Zero carbon emissions goals by 2050. The UK’s Buildings Mission aims at reducing new build energy use to 50% of current levels by 2030. At the same time, the UK’s 2017 Clean Growth Strategy contains targets relating to retrofit of existing buildings: for homes to be upgraded to band C by 2030, and non-domestic properties to improve energy productivity by 20% by 2030.

Researchers at the University of Leeds undertook a macroeconometric study to estimate the broader socio-macroeconomic impacts of energy reduction targets to new and existing domestic and non-domestic buildings in the UK. The modelling analysis used the University of Leeds’ MARCO-UK econometric model. Key results across different scenarios include quantification of actual total energy reduction and finding wider benefits including higher GDP, jobs, wages and disposable income.

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