CHAPTER 15. EMPLOYMENT IMPACT ANALYSIS 

TABLE OF CONTENTS 

15.1 INTRODUCTION ......................................................................................................... 15-1 

15.2 METHOD ...................................................................................................................... 15-1 

15.3 RESULTS ...................................................................................................................... 15-2 

15.3.1 Increased Capital Investment Cost Impacts................................................................... 15-2 

15.3.2 Decreased Energy Cost Impacts .................................................................................... 15-3 

15.3.3 Changes in Operations and Maintenance Costs Impacts ............................................... 15-5 

15.3.4 Net National Employment Impacts................................................................................ 15-5 

LIST OF TABLES 

Table 15.3.1 Conventional Cooking Products Net National Change in Jobs ......................... 15-7 

Table 15.3.2 Microwave Oven EF Net National Change in Jobs........................................... 15-7 

LIST OF FIGURE 

Figure 15.3.1 Conventional Cooking Products Employment Impact of Increased 

Equipment Cost.................................................................................................. 15-2 

Figure 15.3.2 Microwave Oven EF Employment Impact of Increased Equipment Cost......... 15-3 

Figure 15.3.3 Conventional Cooking Product Employment Impact of Energy Savings ......... 15-4 

Figure 15.3.4 Microwave Oven EF Employment Impact of Energy Savings.......................... 15-4 

Figure 15.3.5 Conventional Cooking Products Impacts of Operations and Maintenance 

Cost Increase...................................................................................................... 15-5 

Figure 15.3.6 Conventional Cooking Products Net National Employment Impacts ............... 15-6 

Figure 15.3.7 Microwave Oven EF Net National Employment Impacts ................................. 15-6 

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EERE-2006-STD-0127 COMMENT 64.2
CHAPTER 15. EMPLOYMENT IMPACT ANALYSIS 

15.1 INTRODUCTION 

The Department defines net national employment impacts from conventional cooking 

product and microwave oven efficiency standards as net jobs created or eliminated in the general 

economy as a consequence of: (1) increased spending on the purchase and installation of new 

appliances; (2) reduced spending on electricity, natural gas, and water; (3) reduced spending on 

new investment or capacity by energy companies; (4) changes in operation and maintenance 

costs; and (5) the associated indirect effects of the above. 

15.2 METHOD 

The Department based its analysis on an input/output model of the U.S. economy that 

estimates the effects of standards on major sectors of the economy related to buildings and the 

net impact of standards on jobs. The Pacific Northwest National Laboratory developed the 

model, ImSET1 (which stands for Impact of Sector Energy Technologies) as a successor to 

ImBuild2

, a special-purpose version of the IMPLAN3 national input/output model. ImSET 

estimates the employment and income effects of building energy technologies. In comparison 

with simple economic multiplier approaches, ImSET allows for more complete and automated 

analysis of the economic impacts of energy-efficiency investments in buildings. 

In an input/output model, the level of employment in an economy is determined by the 

relationship of different sectors of the economy and the spending flows among them. Different 

sectors have different levels of labor intensity and so changes in the level of spending (e.g., due 

to the effects of an efficiency standard) in one sector of the economy will affect flows in other 

sectors, which affects the overall level of employment. 

ImSET uses a 188-sector model of the national economy to predict the economic effects 

of residential and commercial buildings technologies. ImSET collects estimates of initial 

investments, energy savings, and economic activity associated with spending the savings 

resulting from standards (e.g., changes in final demand in personal consumption, business 

investment and spending, and government spending). It provides overall estimates of the change 

in national output for each input-output sector. The model applies estimates of employment and 

wage income per dollar of economic output for each sector and calculates impacts on national 

employment and wage income. 

Energy-efficiency technology primarily affects the U.S. economy along three spending 

pathways. First, general investment funds are diverted to sectors that manufacture, install, and 

maintain energy-efficient appliances. The increased cost of appliances leads to higher 

15-1 

EERE-2006-STD-0127 COMMENT 64.2
employment in the appliance manufacturing sectors and lower employment in other economic 

sectors. Second, commercial firm and residential spending are redirected from utilities toward 

firms that supply production inputs. Third, electric utility sector investment funds are released 

for use in other sectors of the economy. When consumers use less energy, electric utilities 

experience relative reductions in demand which leads to reductions in utility sector investment 

and employment. 

15.3 RESULTS 

The results in this section refer to impacts of conventional cooking product and 

microwave oven standards relative to the base case for each appliance. DOE disaggregated the 

impact of conventional cooking product and microwave oven standards on employment into 

three component effects: increased capital investment costs, decreased energy and water costs, 

and changes in operations and maintenance costs. 

15.3.1 Increased Capital Investment Cost Impacts 

Figures 15.3.1 and 15.3.2 show the employment impacts of the increased investment and 

spending on more-efficient equipment. Because appliance manufacturing is relatively capitalintensive compared to other sectors of the economy, the net result is a small loss of employment. Incremental Jobs (1000) 

0 

-0.1 

-0.2 

-0.3 

-0.4 

-0.5 

2012 2016 2020 2024 2028 2032 2036 2040 

Year 

TSL1 

TSL2 

TSL3 

TSL4 

Figure 15.3.1 Conventional Cooking Products Employment Impact of Increased 

Equipment Cost 

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EERE-2006-STD-0127 COMMENT 64.2
-0.4 

-0.35 

-0.3 

-0.25 

-0.2 

-0.15 

-0.1 

-0.05 

0 

2012 2016 2020 2024 2028 2032 2036 2040 

Year 

Incremental Jobs (1000) 

TSL1 

TSL2 

TSL3 

TSL4 

Figure 15.3.2 Microwave Oven EF Employment Impact of Increased Equipment 

Cost 

15.3.2 Decreased Energy Cost Impacts 

Figures 15.3.3 and 15.3.4 show the employment impact of redirected spending made 

possible by appliance energy savings. In this case, the employment impact is strongly positive, 

increasing employment in the sectors that supply these firms with production, investment, or 

financial inputs. 

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EERE-2006-STD-0127 COMMENT 64.2
0 

0.2 

0.4 

0.6 

0.8 

1 

1.2 

1.4 

1.6 

2012 2016 2020 2024 2028 2032 2036 2040 

Year 

Incremental Jobs (1000) 

TSL1 

TSL2 

TSL3 

TSL4 

Figure 15.3.3 Conventional Cooking Product Employment Impact of Energy 

Savings 

0 

0.5 

1 

1.5 

2 

2.5 

3 

2012 2016 2020 2024 2028 2032 2036 2040 

Year 

Incremental Jobs (1000) 

TSL1 

TSL2 

TSL3 

TSL4 

Figure 15.3.4 Microwave Oven EF Employment Impact of Energy Savings 

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EERE-2006-STD-0127 COMMENT 64.2
15.3.3 Changes in Operations and Maintenance Costs Impacts 

Figure and 15.3.5 shows the employment impacts of non-energy operations and 

maintenance cost increases for conventional cooking products. Operations and maintenance 

costs were estimated to be the same for all conventional cooking product TSLs. No operations 

and maintenance cost increase was estimated for microwave ovens. Repair and maintenance is 

comparatively labor-intensive, so the net result is a small increase in employment. 

0 

0.05 

0.1 

0.15 

0.2 

2012 2016 2020 2024 2028 2032 2036 2040 

Year 

Incremental Jobs (1000)

All TSLs 

Figure 15.3.5 Conventional Cooking Products Impacts of Operations and 

Maintenance Cost Increase 

15.3.4 Net National Employment Impacts 

Figures 15.3.6 and 15.3.7 show the estimated net national employment impacts of the 

conventional cooking products and microwave oven trial standard levels. For any given year, 

these figures show the net change in the number of jobs in the economy relative to if there were 

no change in standards (and thus no resulting change in spending and cash flow patterns 

throughout the economy). Tables 15.3.1 and 15.3.2 show the net national employment impact in 

specific years. 

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EERE-2006-STD-0127 COMMENT 64.2
-0.4 

-0.2 

0 

0.2 

0.4 

0.6 

0.8 

1 

1.2 

1.4 

2012 2016 2020 2024 2028 2032 2036 2040 

Incremental Jobs (1000) 

TSL1 

TSL2 

TSL3 

TSL4 

Year 

Figure 15.3.6 Conventional Cooking Products Net National Employment Impacts 

0 

0.5 

1 

1.5 

2 

2.5 

2012 2016 2020 2024 2028 2032 2036 2040 

Year 

Incremental Jobs (1000) 

TSL1 

TSL2 

TSL3 

TSL4 

Figure 15.3.7 Microwave Oven EF Net National Employment Impacts 

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EERE-2006-STD-0127 COMMENT 64.2
Table 15.3.1 Conventional Cooking Products Net National Change in Jobs 

Trial Standard Level 

2012 

(thousands) 

2020 

(thousands) 

2030 

(thousands) 

2042 

(thousands) 

1

2

3

4

0.01

0.03

0.03

-0.29

0.20

0.44

0.47

0.31

0.31

0.83

0.89

0.94

0.26

0.94

1.03

1.21

Table 15.3.2 Microwave Oven EF Net National Change in Jobs 

Trial Standard Level 

2012 

(thousands) 

2020 

(thousands) 

2030 

(thousands) 

2042 

(thousands) 

1

2

3

4

0.19

0.15

0.12

0.04

1.75

1.78

2.13

2.22

1.78

1.78

2.10

2.14

2.06

2.07

2.44

2.47

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EERE-2006-STD-0127 COMMENT 64.2
REFERENCES 

1 Roop, J.M., M. J. Scott, and R. W. Schultz. ImSET: Impact of Sector Energy Technologies. 

Pacific Northwest National Laboratory. July 2005. 

2 Scott, M. J., D. J. Hostick, and D. B. Belzer, ImBuild: Impact of Building Energy Efficiency 

Programs, April, 1998. Pacific Northwest National Laboratory. Richland, WA. Report No. 

PNNL-11884. Prepared for the U.S. Department of Energy under Contract DE-AC06-76RLO 

1830. 

3 Minnesota IMPLAN Group, Inc., IMPLAN Professional: User’s Guide, Analysis Guide, 

Data Guide, 1997. Stillwater, MN. 

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