Daylight savings said to contribute some NIS 350 million to economy

Time change increases worker productivity, consumer spending, and decreases energy costs and traffic accidents, economic officials announce

Daylight savings contributed NIS 350 million ($100 million) to the economy by increasing productivity and consumption and reducing energy costs.

The cost savings in the seven months of daylight savings, which ended overnight Saturday-Sunday, were estimated by officials from the Finance Ministry, Manufacturers’ Association and the Union of Chambers of Commerce, Ynet news reported on Sunday.

The biggest savings were in energy, while the extra hour of daylight also encouraged people to go out for entertainment, make purchases and take trips.

Worker productivity tends to be lower when it’s dark out, the report said.

“The summer clock is an important contribution to the growth of the economy, which in aggregate amounts to hundreds of millions of shekels and strengthens the business sector,” the Union of Chambers of Commerce said.

Daily traffic to shops in Israel during the summer clock was about 15 percent higher than during the winter hours, amounting to some 50 million NIS in extra revenue. Private businesses also saw a significant daily increase in revenue.

Savings in electricity amounted to NIS 50 million-70 million, despite the use of air conditioners in the summer.

There were also likely tens of traffic accidents avoided each day due to increased visibility, saving lives, and millions of shekels in medical costs and vehicular damage.

The Health Ministry also noted that the time change had a positive impact on physical and mental health.

Israel made the time change this year independently of the European Union, which decided in March that each member state could decide whether to apply daylight savings time or keep the same time throughout the year.

Israel’s next government will need to decide whether or not to eliminate the winter time change.

The changes in Europe will take effect in 2021. An EU poll found that 84% of respondents favored abolishing the time change.

Israel’s winter officially began at 2 a.m. overnight Saturday-Sunday, when clocks fell back to 1 a.m. again.

Daylight savings time will return officially on March 27, 2020.

The time change in Israel coincides with the EU and the Palestinian Authority, but not the US, which will fall back one hour on November 3.