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Success in sectoral export promotion and economic and environmental indicators: a multisectoral modelling analysis for the UK

Author

Listed:
  • Grant Allan

    (Deparrment of Economics, University of Strathclyde)

  • Christos Barkoumas

    (Deparrment of Economics, University of Strathclyde)

  • Andrew Ross

    (Deparrment of Economics, University of Strathclyde)

  • Ashank Sinha

    (Deparrment of Economics, University of Strathclyde)

Abstract

UK policymakers are seeking to use the levers of a more active industrial policy to develop economic opportunities, including through new and expanded trading opportunities. At the same time, the UK Government has committed to a net zero greenhouse gas emissions target by 2050. While increases in exports are expected to raise economic activity, it is unclear what impact this will have on UK energy use and emissions. With a main plank of the UK strategy the development of _Sector Deals", it is unknown whether this is also true for specific industrial sectors. We examine this empirically in a multisectoral Computable General Equilibrium model of the UK that captures the interdependence between economic activity, energy use and emissions. Our results suggest that while economic outcomes move in the desired direction there are mixed impacts on energy use, UK territorial industrial emissions, and the energy- and emissions-intensity of the UK economy. Notably, we identify instances where growing exports in specific sectors help to meet the objectives of both the Clean Growth Strategy and Industrial Strategy.

Suggested Citation

  • Grant Allan & Christos Barkoumas & Andrew Ross & Ashank Sinha, 2020. "Success in sectoral export promotion and economic and environmental indicators: a multisectoral modelling analysis for the UK," Working Papers 2008, University of Strathclyde Business School, Department of Economics.
    • Handle: RePEc:str:wpaper:2008
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    energy policy; industrial strategy; trade policy; emissions;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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