OR Study Shows Weatherization Economic Benefits

Oregon Housing and Community Services (OHCS), the state LIHEAP and weatherization grantee, recently completed a study exploring the economic impact of Oregon’s Weatherization Program on communities across the state. 

The research found that low-income weatherization significantly benefits local economies; sometimes doubling the initial economic and employment impacts from program expenditures and household energy savings. Titled  The Economic Impacts of Oregon’s Low IncomeWeatherization Program: An Input-Output Analysis, the study used input-output analysis to measure how weatherization dollars that move between businesses, vendors and households “multiply.”

Findings included:

• For every weatherization program dollar spent in Oregon counties up to another $.83 is generated locally. Labor income is impacted as well; for each dollar spent on employee compensation through county weatherization programs, up to another $1.43 in labor income is produced within communities. Additionally, each job associated with weatherization programs produces up to another 1.3 jobs locally.
  
  
• Increased household spending as a result of energy savings also stimulates local economies. Dollars that would in most cases “leak” to out-of-town utility companies are instead spent on other goods (e.g. rent, food, clothing, transportation) in residents’ own communities. This increased spending results in additional jobs, earnings and overall economic growth. Every dollar spent as a result of energy savings yields up to another $.63 within Oregon counties, and $.85 statewide.

In 2005, agencies throughout Oregon weatherized 3,821 homes, helping low-income families increase self-sufficiency through energy conservation and lower utility expenses.

For more information, see the study at: www.ohcs.oregon.gov/OHCS/SOS_WX_Economic_Impact.shtml

Source:  Oregon OHCS

Page Last Updated: November 20, 2006