Template-Type: ReDIF-Paper 1.0
Author-Name: Gioele Figus
Author-Name-First: Gioele
Author-Name-Last: Figus
Author-Email: gioele.figus@strath.ac.uk
Author-Workplace-Name: CEP, International Public Policy Unit, University of Strathclyde
Author-Name: Patrizio Lecca
Author-Name-First: Patrizio
Author-Name-Last: Lecca
Author-Email: Patrizio.LECCA@ec.europa.eu
Author-Workplace-Name: European Union
Author-Name: Peter McGregor
Author-Name-First: Peter
Author-Name-Last: McGregor
Author-Email: p.mcgregor@strath.ac.uk
Author-Workplace-Name: Department of Economics, University of Strathclyde
Author-Name: Karen Turner
Author-Name-First: Karen
Author-Name-Last: Turner
Author-Email: karen.turner@strath.ac.uk
Author-Workplace-Name: CEP, International Public Policy Unit, University of Strathclyde
Title: Energy efficiency as an instrument of regional development policy?  Trading-off the benefits of an economic stimulus and energy rebound effects
Abstract: Previous studies show that improving efficiency in household energy use can stimulate a national economy through an increase and change in the pattern of the aggregate demand. However, this may impact competitiveness. Here we find that in an open region, interregional migration of workers may give additional momentum to the economic expansion, by relieving pressure on the real wage and the CPI. Furthermore, the stimulus will be further enhanced by the greater fiscal autonomy that Scotland is set shortly to enjoy. By considering a range of CGE simulation scenarios we show that there is a tension between the economic stimulus from energy efficiency and the scale of rebound effects. However, we also show that household energy efficiency increases do typically generate a “double dividend” of increased regional economic activity and a reduction in carbon emissions.
Length: 43 pages
Creation-Date: 2017-02
Revision-Date: 
Publication-Status: Published
File-URL: https://www.strath.ac.uk/media/1newwebsite/departmentsubject/economics/research/researchdiscussionpapers/17.02.pdf.pagespeed.ce.H00sxX5MCg.pdf
File-Format: Application/pdf
Number: 1702
Classification-JEL: C68, D58, Q43, Q48, R28, R58
Keywords: energy efficiency, regional development policy, energy rebound, regional fiscal autonomy, general equilibrium
Handle: RePEc:str:wpaper:1702