A study shows that Craven could cut its energy bill by £31 million by improving its carbon footprint.

The report says investments – which could be made in households, commercial buildings, industry and transport – would pay for themselves on commercial terms in just four years.

The total energy bill for all of the households, businesses, public buildings, commercial premises and transport in Craven is £117 million a year. Paying the energy bill means that 11 per cent of all income generated in Craven leaves the local economy every year – an amount that is forecast to grow significantly in the next ten years.

By developing league tables of the most cost and carbon effective measures (insulation, solar panels, more efficient appliances and vehicles and so on) available for the domestic, commercial, industrial and transport sectors, the report finds that investments of £147 million in the most cost-effective options would cut Craven’s energy bill by £31 million a year.

They would also generate 87 new jobs in the low-carbon goods and services sector and when combined with other measures would generate a 42 per cent drop in carbon emissions by 2022 (based on 1990 levels).

The results of a study on the economics of low carbon development were presented to an audience of 300 decision makers in Leeds.

Lead author Professor Andy Gouldson, at the University of Leeds, said: “There is a lot of uncertainty about the best way to cut energy bills and carbon footprints at the local level.

“There are thousands of low-carbon options available, but there is often a lack of reliable information on their performance.

“This lack of information can be a major barrier to action, making it hard to develop a political or a business case for major-scale investments. The result is that major opportunities for cost and carbon reduction are left unexploited. The business case for major-scale investments in energy and carbon management is very strong. If local government can underwrite early-stage investments, as is happening in some places, then major flows of private sector investment can be secured.

“Investments can come from institutional investors such as pension funds, or in the near future through the Green Deal, the Green Investment Bank or Energy Company Obligations.

“The direct economic reasons for securing investments from sources like these are strong enough - but the wider economic, social and environmental benefits make the business case even more compelling.”