Every euro spent by local authorities of the Basque Country on sustainability policies generates 2.3 euros in the economy
Over two euros are generated in the Basque economy for every euro that local and municipal authorities in the Udalsarea 21 network invest in local sustainability policies.This is the conclusion of the study conducted by the Basque Network of Municipalities for Sustainability to assess the economic impact of managing local sustainable development in the Basque Autonomous Community.
The study found that for each euro directly spent on sustainability policies by local authorities, additional spending of €1.1 by other stakeholders is generated. The “Economic Impact of the Local Sustainability Policies of the BAC” report published by Udalsarea 21 concludes that each euro spent by local authorities produces 2.3 euros in the economy. In terms of employment, 17 jobs are generated for each million euros allocated to spending related to local sustainable development. The report stresses that in terms of fiscal return, this amounts to 51%, in other words, €51 out of every €100 invested is returned to public finances in the form of taxes.
The conclusions of the Udalsarea 21 report are the result of the information obtained by the working party, made up of twelve local authorities of the Basque Country. The working party was set up to agree on and establish the set of methodologies to assess and calculate the economic impact of the local sustainability policies of the Udalsarea 21 members in the BAC.
The pilot scheme implemented by Udalsarea 21 in February 2014 involved the active participation of the Asparrena (1,652 inhab.), Balmaseda (7,829 inhab.), Basauri (41,624 inhab.), Berango (6,925 inhab.), Durango (28,220 inhab.), Elburgo (624 inhab.), Maruri-Jatabe (945 inhab.), Vitoria-Gasteiz (242,082 inhab.), Iruraiz-Gauna (511 inhab.) local councils and at supramunicipal level, Cuadrilla de Salvatierra (12,520 inhab.), Mancomunidad de Servicios Uribe Kosta (36,319 inhab.) and the Udaltalde 21 Nerbioi-Ibaizabal Sustainability Office (108,745 inhab.).
The economic information provided by each local authority as input for the study covered 18 socio-economic, environmental and territorial thematic areas. The staff and running costs associated to local sustainable development were likewise considered.