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Discussions of climate protection and the energy sector transition are still dominated by cost considerations; however, decentralized efforts such as the expanded use of renewable energies and energy-efficiency improvements to existing buildings can have a positive economic impact with respect to local and regional value added and employment. The Institute for Ecological Economy Research (IÖW) developed a model to quantify the value added and employment effects generated by renewable energies at the local level, to fill the gap concerning the identification of local and regional economic effects of the energy transition. This approach has later been extended to account for the economic effects of energy-efficiency refurbishment of existing dwellings. In this chapter, the methodology of these two models is described and results for the city of Berlin are presented. These show that the increased use of renewable energies and energy-efficiency refurbishment measures have the potential to make an important contribution to the regional economy with respect to value added and employment.

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