Summary of CoNE and input assumptions in E3ME

To reflect economic realities, the effects from the cost savings are not assumed to kick-in
immediately. Instead, cost savings are assumed to gradually accumulate starting in 2015
until they are fully realised in 2020. Moreover, the cost savings due to the removal of
barriers to DSM in the different areas are split between economic sectors and EU
countries in a way that reflects their real importance. Hence, in the case of cloud
computing the splitting was based on the weights derived from input-output tables in
order to allocate greater cost savings to those sectors which purchase more products
from the computer programming and information service industry. The estimates for
payments, and postal and parcel delivery were treated in a similar fashion but with the
weighting, and hence cost savings, focused on their respective sectors.