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The application of multi-region environmental input-output (IO) analysis to the problem of accounting for emissions generation (and/or resource use) under different accounting principles has become increasingly common in the ecological and environmental economics literature, with many applications at the international but fewer at the interregional sub-national level. As an accounting framework, IO tables and IO demand-driven multiplier techniques are absolutely appropriate for conventional pollution attribution analyses because they provide all the required information on pollution embodied in intersectoral interactions and interregional trade flows. However, as a model of how the economy moves from one equilibrium to another in response to a marginal change in activity, IO is unlikely to be appropriate because it is only a very special case of a wider set of general equilibrium approaches. Here, we combine IO accounting with interregional computable general equilibrium (CGE) modelling, adopting Scotland and the rest of the UK as an example. We use the CGE framework to model the impacts of a change in activity and IO analysis for the accounting/attribution analysis of pollution embodied in interregional trade flows (and the interregional CO2 „trade balance‟) before and after the change is introduced.

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 non-target region are particularly sensitive to the treatment of the regional labour market.

One aspect of the case for policy support for renewable energy developments is the wider economic benefits that are expected to be generated. Within Scotland, as with other regions of the UK, there is a focus on encouraging domestically‐based renewable technologies. In this paper, we use a regional computable general equilibrium framework to model the impact on the Scottish economy of expenditures relating to marine energy installations. The results illustrate the potential for (considerable) ‘legacy’ effects after expenditures cease. In identifying the specific sectoral expenditures with the largest impact on (lifetime) regional employment, this approach offers important policy guidance.

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 non-target region are particularly sensitive to the treatment of the regional labour market.

First paragraph: This project uses an experimental energy-economy-environment computable general equilibrium (CGE) model of the Scottish economy (AMOSENVI) to conduct illustrative simulations of the economic and environmental impacts of various options to reduce the generation of CO2 emissions (as the main greenhouse gas) in Scotland. These simulations are illustrative in nature because the process of appropriate database development and model specification for a comprehensive and accurate analysis of climate change policy issues for Scotland, while advanced relative to many regional (and even national) economies, is still in its very early stages. One of the key objectives of this project is to illustrate the potential value-added to Scotland's analytical capacity if further investment is made (by both the policy community, particularly in terms of data provision, and the research community, with public support, for example by seeking support from the research councils) in developing an appropriate CGE modelling framework.

First paragraph: The impact of energy efficiency improvements may permeate throughout an economy, leading to a series of adjustments in the production and consumption of different goods and services. These adjustments cannot be adequately captured within a partial equilibrium framework but may be explored through the use of Computable General Equilibrium (CGE) models of the macro-economy. CGE models are widely used in the investigation of energy and climate policy, partly as a consequence of the ready availability of modelling frameworks and associated benchmark data. However, these models have rarely been used to study economy-wide rebound effects, despite their apparent suitability for this purpose.

UK governments generally advocate regional policy as a means of reducing regional disparities and stimulating national growth. However, there is limited comprehension regarding the effects of regional policy on non-target economies. This paper examines the system-wide effects on the Scottish and rest of UK (RUK) economies of an increase in Scottish traded sector exports to the rest of the world. The research is carried out in an inter-regional Computable General Equilibrium framework of the Scottish and RUK economies, under alternative hypotheses regarding wage determination and inter-regional migratory behaviour. The findings suggest that regional policy can have significant national spillover effects, even when the target region is small relative to the RUK. Furthermore, the configuration of the labour market is important in determining the post-shock adjustment path of both economies. In particular, while Scottish economy results are sensitive to alternative versions of how regional labour markets function, RUK region effects prove to be even more so.

In a UK context, research into regional policy impacts has focused largely on the effects of a policy on the target region, with any consequences for other regions being largely ignored. This study aims to address this issue by providing a comprehensive evaluation of regional policy, focusing on both the regional and national implications of a policy shock. The paper examines the system-wide effects on the Scottish and rest of UK (RUK) economies of an increase in labour efficiency in the Scottish traded sectors. The research is carried out in an inter-regional computable general equilibrium framework of the Scottish and RUK economies, under alternative hypotheses regarding wage determination and inter-regional migratory behaviour. The findings suggest that regional policy can have significant national spillover effects, even when the target region is small relative to the RUK. Furthermore, the configuration of the labour market is important in determining the post-shock adjustment path of both economies. In particular, while Scottish economy results are sensitive to alternative versions of how regional labour markets function, RUK region effects prove to be even more so.