Valorization of economic effects from the programme of energy renovation of public buildings in Croatia

The aim of this paper is to determine the socio-economic effects of investing in an energy-efficient renovation of public buildings in the Republic of Croatia. Valorization of economic effects is based on the gross value added and jobs that were induced by energy renovation. Analysis techniques of an open and closed input–output model were used for the quantification of multiplicative economic effects connected to the energy renovation. While the open input–output model quantifies indirect effects, the model closed by personal expenses quantifies induced effects which are the result of the income growth in the household sector induced by direct and indirect effects of investments in the renovation of public buildings. The results indicate positive economic effects of investing in the energy renovation of public building. Total effects include short-term effects, during the implementation period of the renovation project, as well as long-term effects related to the energy savings and redirecting the resources to another category of final expenses. Besides having a positive effect on the construction sector, energy renovation encourages the activity of other sectors involved in the value-added chain of the construction industry.