ECN publication
De werkgelegenheidseffecten van het nationaal isolatie programma.
Published by: Publication date:
ECN Policy Studies 1981
ECN report number: Document type:
ESC-15 ECN publication
Number of pages: Full text:
57 Download PDF  

The Dutch National Insulation Program has been in operation since July 1978. The Program aims to insulate 2.5 million existing homes in 12.5 years. A 15% subsidy on double glazing and a 25% subsidy on all other types of insulation with a limit of f 1.250,-- per dwelling forms the key motivating force of the program. At an average cost of f 2.400,-- per dwelling this implies a total government investment of f 1.3 billion. Such a major claim on the public budget justifies attention for the effects of the program on employment. It is concluded, that the total employment effects of the present program amount to 51.000 personyears. Presently the home retrofit insulation sector employs about 6.$00 people of whom roughly 35% indirectly. These figures do not include induced employment. Cumulatively, less than 3.500 personyears will be lost in the natural gas production and distribution industries, while roughly 46.000 personyears will be gained in the non-energy sectors, because insulation means cost-savings, that will be spent outside the energy sector and thus create employment. The regional, temporal and qualitative aspects of the resulting labor demand are also considered. Finally, the employment implications of subsidy budget alterations and differentiation of subsidy rates per insulation type are ealeulated using alternative hypotheses about the elasticities of demand for insulation.

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