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The academic and policy-oriented literature increasingly quantifies the wider effects of energy policy on the macroeconomy. However, the spillovers from economic policies to energy use are less frequently recognised, meaning that many policymakers who strive to improve productivity whilst simultaneously targeting emission reduction fail to consider these interactions. This paper addresses this issue by using simulation results generated by introducing an exogenous increase in labour productivity in a computable general equilibrium model calibrated with data from the United Kingdom. Theoretical analysis suggests that increasing labour productivity can have positive or negative effects on employment levels and energy use. However, the simulation results show that in the context of a developed open economy, improved labour efficiency will increase employment, a key policy objective, but simultaneously increase energy use. A key policy implication is that this work highlights the need for policy frameworks that explicitly acknowledge and quantify the interconnections between national economic policy strategies and energy policy objectives. Secondly, it shows that in practice, policies to reduce carbon emissions need to be strengthened alongside policies to improve productivity successfully implemented. [ABSTRACT FROM AUTHOR]

The fiscal powers of the Scottish government have increased significantly, resulting in the first (modest) regional differences in income tax rates within the UK. In fact, the current degree of fiscal autonomy would permit a radical shift towards a high-tax, high-spend 'Scandinavian model'. It is found that the impact of such a change on the Scottish economy is likely to be positive only if the public value the increased public spending and are willing, and able, to accept a corresponding reduction in their take-home pay. It is concluded that the current bargaining system is unlikely to deliver such an outcome. [ABSTRACT FROM AUTHOR]

This paper analyses the impact of London-based higher education institutions (HEIs) on the English economy. When we treat each of the HEIs as separate sectors in conventional input-output analysis, their expenditure impacts appear rather homogenous, with the apparent heterogeneity of their overall impacts being primarily driven by scale. However, a disaggregation of income by source reveals considerable variation in their dependence upon public funding and ability to draw in income/funding from external sources. Acknowledging the possible alternative uses of the public funding and deriving balanced expenditure multipliers reveals large differences in the net-expenditure impact with the source of variation being the origin of income. The institutional multiplier is driven by the ability to attract external funding, which would typically favour research-intensive institutions. However, the impacts of students’ consumption expenditures are also significant. In terms of ranking of multipliers the overall results are mixed. [ABSTRACT FROM PUBLISHER]

UK regional policy has been advocated as a means of reducing regional disparities and stimulating national growth. However, there is limited understanding of the interregional and national effects of such a policy. This paper uses an interregional computable general equilibrium model to identify the national impact of a policy-induced regional demand shock under alternative labour market closures. Our simulation results suggest that regional policy operating solely on the demand side has significant national impacts. Furthermore, the effects on the nontarget region are particularly sensitive to the treatment of the regional labour market. [ABSTRACT FROM AUTHOR]

Abstract: In this paper we attempt an empirical application of the multi-region input–output (MRIO) method proposed by Turner, Lenzen, Wiedmann and Barrett [Turner, K., Lenzen, M., Wiedmann, T., Barrett, J., 2007. Examining the global environmental impact of regional consumption activities — part 1: a technical note on combining input–output and ecological footprint analysis. Ecological Economics 62 (1), 37–44] in a recent issue of this journal in order to enumerate the CO2 pollution content of interregional trade flows between Scotland and the rest of the UK (RUK). We extend the analysis to account for direct emissions generation by households, as final consumers, and to a social accounting matrix (SAM), where a more comprehensive account of incomes and expenditures is possible. While the existence of significant data problems mean that the quantitative results of this study should be regarded as provisional, the interregional economy-environment IO and SAM framework for Scotland and RUK allows an illustrative analysis of some very important issues in terms of the nature and significance of interregional environmental spillovers within the UK and the existence of a CO2 ‘trade balance’ between Scotland and RUK. [Copyright &y& Elsevier]

This paper considers the recommendations of the Allsopp Review on the adequacy of UK regional economic statistics. It raises general concerns over the philosophy underpinning the review and specific questions as to whether the review's recommendations are sufficient to operate effectively the present UK regional policy regime. In particular, the institutional arrangements that make up the 'new localism' in UK regional policy have data requirements that are more extensive than simply monitoring performance against government targets. Many of these in formational requirements were simply not considered or were given an inappropriately low weight in the Review's deliberations. [ABSTRACT FROM AUTHOR]

Abstract: This paper investigates the economic impact of a 5% improvement in the UK household energy efficiency, focussing specifically on total energy rebound effects. The impact is measured through simulations using models that have increasing degrees of endogeneity but are calibrated on a common data set, moving from a basic partial equilibrium approach to a fully specified general equilibrium treatment. The size of the rebound effect is shown to depend on changes in household income, aggregate economic activity and relative prices that can only be captured through a general equilibrium model. [Copyright &y& Elsevier]

Carbon capture and storage (CCS) is a technically feasible deep decarbonisation solution. Still it is not widely adopted, arguably due to some basic political economy and policy challenges. One issue is the large infrastructure needs of transporting and storing CO 2. However, a more fundamental challenge in the current UK industrial policy landscape is concern over introducing new costly capital requirements in industries that need to retain competitiveness in a world that has not yet fully signed up to the 'net-zero' transition demanded by the more ambitious 1.5 degrees Celsius warming target of the Paris Agreement. We take the example of high-value chemicals industries operating in the UK devolved region of Scotland and use an economy-wide computable general equilibrium (CGE) model to consider the nature and potential extent of export, GDP and employment losses under different illustrative polluter/government/taxpayer pays approaches to meeting the higher cost requirements. We conclude that the value from subsidising capture activity depends on the extent of export demand response to competitiveness losses resulting from firms bearing CO 2 capture costs. However, outcomes reflect trade-offs across different types of sectors and employment, and are also dependent on labour market responses to changing wage and unemployment rates. • Carbon capture involves sustained additional operating capital costs for industry. • Reduced capital efficiency impacts regional prices and industry competitiveness. • Regional GDP, jobs and earnings losses are dominated by capturing industry losses. • The extent of losses is governed by trade responses to reduced competitiveness. • A subsidy approach funded shifts the burden to household or public spending. [ABSTRACT FROM AUTHOR]