Summary Results 2 – The results of the benefit cost analysis for Class 2 dwellings reproduce the same pattern as for Class 1 dwellings, and therefore the data is presented in summary form. An overview is provided in Table 13. 13: Summary Results: Benefit Cost Analysis: Class 2 Dwellings: Non-Regulatory Option: Reference Scenario Jurisdiction Units Present Present Net Benefit Value of Value of Present Cost Benefits Costs Value Ratios VIC $'000 $1,063 -$7,798 $8,861 -0.14 QLD $'000 $120 $2,310 -$2,190 0.05 SA $'000 $44 -$353 $397 -0.12 WA $'000 $173 -$831 $1,003 -0.21 ACT $'000 $20 -$489 $509 -0.04 $'000 $1,419 -$7,160 $8,579 -0.20 The reduction in future construction dominate the analysis, leading to a negative benefit cost ratio and a NPV of $8.6 million, but more than 6 times lower than the $53.9 million projected for the regulatory approach (Class 2 dwellings only). Sensitivity Analyses Class 2 Dwellings – As with previous scenarios, the only significant variable for the benefit cost analysis is the incremental cost of construction, but high cost solutions are unlikely to be selected if the measure is implemented on a voluntary basis. Summary Class 1 and Class 2 Dwellings – Combining the above results for the reference case generates the following summary indicators see Table 14 below. The combined NPV is $13.8 million, and there is a – negative benefit cost ratio (-0.44). Table 14: Summary Indicators: Benefit Cost Analysis: Class 1 and Class 2 Dwellings: Option: Reference Scenario Present Present Net Benefit of Value of Present Cost Benefits Costs Values Ratios ($'000) ($'000) ($'000) VIC $2,297 -$6,939 $9,236 -0.33
Summary Results – 2 The results of the benefit cost analysis for Class 2 dwellings reproduce the same pattern as for Class 1 dwellings, and therefore the data is presented in summary form. An overview is provided in Table 13. 13: Summary Results: Benefit Cost Analysis: Class 2 Dwellings: Non-Regulatory Option: Reference Scenario Jurisdiction Units Present Value of Benefits Present Value of Costs Net Present Value Benefit Cost Ratios VIC $'000 $1,063 -$7,798 $8,861 -0.14 QLD $'000 $120 $2,310 -$2,190 0.05 SA $'000 $44 -$353 $397 -0.12 WA $'000 $173 -$831 $1,003 -0.21 ACT $'000 $20 -$489 $509 -0.04 $'000 $1,419 -$7,160 $8,579 -0.20 The reduction in future construction dominate the analysis, leading to a negative benefit cost ratio and a NPV of $8.6 million, but more than 6 times lower than the $53.9 million projected for the regulatory approach (Class 2 dwellings only). Sensitivity Analyses – Class 2 Dwellings As with previous scenarios, the only significant variable for the benefit cost analysis is the incremental cost of construction, but high cost solutions are unlikely to be selected if the measure is implemented on a voluntary basis. Summary – Class 1 and Class 2 Dwellings Combining the above results for the reference case generates the following summary indicators – see Table 14 below. The combined NPV is $13.8 million, and there is a negative benefit cost ratio (-0.44). Table 14: Summary Indicators: Benefit Cost Analysis: Class 1 and Class 2 Dwellings: Option: Reference Scenario Present of Benefits ($'000) Present Value of Costs ($'000) Net Present Values ($'000) Benefit Cost Ratios VIC $2,297 -$6,939 $9,236 -0.33
energy_efficiency_for_residential_buildings_nathers_heating_and_cooling_load_limits_consultation_ris.docx