An Econometric Model of Merseyside: Validation and Policy Simulations

Minford, Patrick; Stoney, Peter; Riley, Jonathan; Webb, Bruce

doi:10.1080/00343409412331348486

Cited by 22 publications

(13 citation statements)

References 1 publication

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“…We also assume that wages are subject to a regional bargained real wage function in which the regional real consumption (take-home/post tax) wage is directly related to workers' bargaining power, and therefore inversely to the regional unemployment rate (Minford et al, 1994). This hypothesis has received considerable support in the recent past from a number of authors.…”

Section: General Structurementioning

confidence: 99%

Do increases in energy efficiency improve environmental quality and sustainability?

Hanley

McGregor

Swales

et al. 2009

Ecological Economics

194

102

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Resource Productivity is increasingly seen as an important aspect of sustainability by governments world-wide. Making more with less seems to be intuitive in terms of reducing the burden on the environment while allowing for economic development. In the UK policy context there appears to be an acceptance that enhanced resource productivity is "good for the environment". However, there is a debate in the literature concerning the possibility that any beneficial impact on the environment may be partially ("rebound") or even more than wholly ("backfire") offset. This paper clarifies the theoretical conditions under which such effects would occur and explores their likely significance using a computable general equilibrium (CGE) model of the Scottish economy. We find that an improvement in energy efficiency ultimately increases energy use and results in a worsening of the GDP to CO2 emissions ratio. The time interval of analysis proves significant, with rebound effects eventually growing into backfire. The reason is simple: energy efficiency improvements result in an effective cut in energy prices, which produces output and substitution effects that stimulate energy demands. However, the presence of backfire effects does not imply irrelevance of efficiencyenhancing policies: rather it implies that such policies alone are insufficient to improve the environment. The implication is that energy policies need to be co-ordinated. JEL Classification Q01, Q40, Q43

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Section: General Structurementioning

confidence: 99%

Do increases in energy efficiency improve environmental quality and sustainability?

Hanley

McGregor

Swales

et al. 2009

Ecological Economics

194

102

View full text Add to dashboard Cite

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“…Here, a single local labour market is imposed and characterised by perfect sectoral mobility. In our base case scenario, wages are determined via a bargained real wage function in which the real consumption wage is directly related to workers" bargaining power, and therefore inversely to the unemployment rate (Blanchflower and Oswald, 1994;Minford et al, 1994). We parameterise the bargaining function from the regional econometric work reported by Layard et al (1991):…”

Section: Labour Marketmentioning

confidence: 99%

Energy efficiency, rebound effects and the environmental Kuznets Curve

2011

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Technological change is one factor used to justify the existence of an Environmental Kuznets Curve, and technological improvements have been argued to be a key factor in mitigating the impacts of economic growth on environmental quality. In this paper we use a CGE model of the Scottish economy to consider the factors influencing the impacts of one form of technological changeimprovements in energy efficiency -on absolute levels of CO2 emissions, on the carbon intensity of the economy (CO2 emissions relative to real GDP), and the per capita EKC relationship. These factors include the elasticity of substitution between energy and non-energy inputs, responses in the labour market and the structure of the economy. Our results demonstrate the key role played by the general equilibrium price elasticity of demand for energy, and the relative influence of different factors on this parameter.

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“…4 The 25 production sectors are an aggregate of the Scottish Government"s I-O framework (Scottish Executive, 2002, in the current model), which divides production across 128 sectors in accordance with the UK Standard Industry Classification (SIC). 5 A bargained real wage closure means that the regional consumption wage is directly related to workers" bargaining power and inversely related to the regional unemployment rate (Blanchflower and Oswald, 1994, Minford et al, 1994, Layard et al, 1991. This structure implies that local wages are flexible in that they respond to the local excess demand for labour.…”

Section: Amosenvi: An Energy-economy-environment Model Of Scotlandmentioning

confidence: 99%

Rebound and disinvestment effects in refined oil consumption and supply resulting from an increase in energy efficiency in the Scottish commercial transport sector

Anson¹,

Turner

2009

Energy Policy

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In this paper we use an energy-economy-environment computable general equilibrium (CGE) model of the Scottish economy to examine the impacts of an exogenous increase in energy augmenting technological progress in the domestic commercial Transport sector on the supply and use of energy.We focus our analysis on Scottish refined oil, as the main type of energy input used in commercial transport activity. We find that a 5% increase in energy efficiency in the commercial Transport sector leads to rebound effects in the use of oil-based energy commodities in all time periods, in the target sector and at the economy-wide level. However, our results also suggest that such an efficiency improvement may cause a contraction in capacity in the Scottish oil supply sector. This "disinvestment effect" acts as a constraint on the size of rebound effects. However, the magnitude of rebound effects and presence of the disinvestment effect in the simulations conducted here are sensitive to the specification of key elasticities of substitution in the nested production function for the target sector, particularly the substitutability of energy for non-energy intermediate inputs to production.

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An Econometric Model of Merseyside: Validation and Policy Simulations

Cited by 22 publications

References 1 publication

Do increases in energy efficiency improve environmental quality and sustainability?

Do increases in energy efficiency improve environmental quality and sustainability?

Energy efficiency, rebound effects and the environmental Kuznets Curve

Rebound and disinvestment effects in refined oil consumption and supply resulting from an increase in energy efficiency in the Scottish commercial transport sector

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