Assessing The Job Creation Potential of Energy Conservation Investments

This paper presents a model for assessing the job creation potential of energy conservation investments resulting from construction related installation activities. It also addresses indirect job creation in manufacturing resulting from the purchase of energy conservation related equipment and materials. The model is based on construction estimating techniques and is designed to be flexible for the purpose of addressing job creation due to a wide variety of energy conservation investments. It uses a reverse estimating technique that begins with the scale of the energy conservation investment and then backs out the contractor's profit and overhead and then the cost of equipment/materials. Next, the model allocates the labor portion of the investment based on loaded labor rates and typical crew make-up. The input variables, including worker skill level, allocation of worker time per skill level, regional effects on job creation, rate of pay, and worker benefits, can be modified for the purpose of fine-tuning the model for geographic region and specific energy conservation programs. Outputs from the model include construction job creation and manufacturing job creation.