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The regional employment impacts of renewable energy expenditures: The case for modelling

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  • Grant Allan

    () (Fraser of Allander Institute, University of Strathclyde)

  • Michelle Gilmartin

    () (Fraser of Allander Institute, University of Strathclyde)

Abstract

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.

Suggested Citation

  • Grant Allan & Michelle Gilmartin, 2011. "The regional employment impacts of renewable energy expenditures: The case for modelling," Working Papers 1129, University of Strathclyde Business School, Department of Economics.
  • Handle: RePEc:str:wpaper:1129
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    References listed on IDEAS

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    1. Harrigan, Frank & McGregor, Peter G. & Dourmashkin, Neil & Perman, Roger & Swales, Kim & Yin, Ya Ping, 1991. "AMOS : A macro-micro model of Scotland," Economic Modelling, Elsevier, vol. 8(4), pages 424-479, October.
    2. Paul S. Armington, 1969. "A Theory of Demand for Products Distinguished by Place of Production (Une théorie de la demande de produits différenciés d'après leur origine) (Una teoría de la demanda de productos distinguiénd," IMF Staff Papers, Palgrave Macmillan, vol. 16(1), pages 159-178, March.
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    4. Krugman, Paul, 1980. "Scale Economies, Product Differentiation, and the Pattern of Trade," American Economic Review, American Economic Association, vol. 70(5), pages 950-959, December.
    5. Hanley, Nick D. & McGregor, Peter G. & Swales, J. Kim & Turner, Karen, 2006. "The impact of a stimulus to energy efficiency on the economy and the environment: A regional computable general equilibrium analysis," Renewable Energy, Elsevier, vol. 31(2), pages 161-171.
    6. Philibert, Cedric, 1999. "The economics of climate change and the theory of discounting," Energy Policy, Elsevier, vol. 27(15), pages 913-927, December.
    7. Allan, Grant J. & Bryden, Ian & McGregor, Peter G. & Stallard, Tim & Kim Swales, J. & Turner, Karen & Wallace, Robin, 2008. "Concurrent and legacy economic and environmental impacts from establishing a marine energy sector in Scotland," Energy Policy, Elsevier, vol. 36(7), pages 2734-2753, July.
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    Cited by:

    1. Cameron, Lachlan & van der Zwaan, Bob, 2015. "Employment factors for wind and solar energy technologies: A literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 45(C), pages 160-172.
    2. Dalton, Gordon & Allan, Grant & Beaumont, Nicola & Georgakaki, Aliki & Hacking, Nick & Hooper, Tara & Kerr, Sandy & O’Hagan, Anne Marie & Reilly, Kieran & Ricci, Pierpaolo & Sheng, Wanan & Stallard, T, 2015. "Economic and socio-economic assessment methods for ocean renewable energy: Public and private perspectives," Renewable and Sustainable Energy Reviews, Elsevier, vol. 45(C), pages 850-878.
    3. Allan, G.J. & Lecca, P. & McGregor, P.G. & Swales, J.K., 2014. "The economic impacts of marine energy developments: A case study from Scotland," Marine Policy, Elsevier, vol. 43(C), pages 122-131.

    More about this item

    Keywords

    Renewable energy policy; regional economic impacts; computable general equilibrium modelling.;

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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