IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v274y2020ics0306261920308126.html
   My bibliography  Save this article

Assessing energy and economic impacts of large-scale policy shocks based on Input-Output analysis: Application to Brexit

Author

Listed:
  • Rocco, Matteo V.
  • Guevara, Zeus
  • Heun, Matthew Kuperus

Abstract

The assessment of the prospective, economy-wide, economic and environmental impact of large-scale policy shocks is currently performed via general equilibrium models, relying on background input–output data usually characterized by a very aggregated definition of the energy conversion chain. Thus, such models are not always able to properly assess the impact of policy shocks on the energy conversion chain. On the other hand, empirical models based on physical data provide a detailed picture of the energy conversion chain but are unable to comprehensively address energy-economy interactions.

Suggested Citation

  • Rocco, Matteo V. & Guevara, Zeus & Heun, Matthew Kuperus, 2020. "Assessing energy and economic impacts of large-scale policy shocks based on Input-Output analysis: Application to Brexit," Applied Energy, Elsevier, vol. 274(C).
    • Handle: RePEc:eee:appene:v:274:y:2020:i:c:s0306261920308126
    DOI: 10.1016/j.apenergy.2020.115300
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261920308126
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2020.115300?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Angel Aguiar & Badri Narayanan & Robert McDougall, 2016. "An Overview of the GTAP 9 Data Base," Journal of Global Economic Analysis, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, vol. 1(1), pages 181-208, June.
    2. Dhingra, Swati & Ottaviano, Gianmarco I. P. & Sampson, Thomas & Reenen, John Van, 2016. "The consequences of Brexit for UK trade and living standards," LSE Research Online Documents on Economics 66144, London School of Economics and Political Science, LSE Library.
    3. Michael G. Pollitt, 2017. "The economic consequences of Brexit: energy," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 33(suppl_1), pages 134-143.
    4. Hylke Vandenbussche & William Connell & Wouter Simons, 2022. "Global value chains, trade shocks and jobs: An application to Brexit," The World Economy, Wiley Blackwell, vol. 45(8), pages 2338-2369, August.
    5. repec:rri:wpaper:201101 is not listed on IDEAS
    6. Liu, Jing-Yu & Lin, Shih-Mo & Xia, Yan & Fan, Ying & Wu, Jie, 2015. "A financial CGE model analysis: Oil price shocks and monetary policy responses in China," Economic Modelling, Elsevier, vol. 51(C), pages 534-543.
    7. Ramey, V.A., 2016. "Macroeconomic Shocks and Their Propagation," Handbook of Macroeconomics, in: J. B. Taylor & Harald Uhlig (ed.), Handbook of Macroeconomics, edition 1, volume 2, chapter 0, pages 71-162, Elsevier.
    8. Swati Dhingra & Hanwei Huang & Gianmarco Ottaviano & João Paulo Pessoa & Thomas Sampson & John Van Reenen, 2017. "The costs and benefits of leaving the EU: trade effects," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 32(92), pages 651-705.
    9. Benjamin Born & Gernot J Müller & Moritz Schularick & Petr Sedláček, 2019. "The Costs of Economic Nationalism: Evidence from the Brexit Experiment," The Economic Journal, Royal Economic Society, vol. 129(623), pages 2722-2744.
    10. Heun, Matthew Kuperus & Brockway, Paul E., 2019. "Meeting 2030 primary energy and economic growth goals: Mission impossible?," Applied Energy, Elsevier, vol. 251(C), pages 1-1.
    11. Euan Phimister & Deborah Roberts, 2017. "Allowing for uncertainty in exogenous shocks to CGE models: the case of a new renewable energy sector," Economic Systems Research, Taylor & Francis Journals, vol. 29(4), pages 509-527, October.
    12. Richard Wood & Konstantin Stadler & Tatyana Bulavskaya & Stephan Lutter & Stefan Giljum & Arjan De Koning & Jeroen Kuenen & Helmut Schütz & José Acosta-Fernández & Arkaitz Usubiaga & Moana Simas & Olg, 2014. "Global Sustainability Accounting—Developing EXIOBASE for Multi-Regional Footprint Analysis," Sustainability, MDPI, vol. 7(1), pages 1-26, December.
    13. James D Ward & Paul C Sutton & Adrian D Werner & Robert Costanza & Steve H Mohr & Craig T Simmons, 2016. "Is Decoupling GDP Growth from Environmental Impact Possible?," PLOS ONE, Public Library of Science, vol. 11(10), pages 1-14, October.
    14. Hamilton, James D., 2011. "Nonlinearities And The Macroeconomic Effects Of Oil Prices," Macroeconomic Dynamics, Cambridge University Press, vol. 15(S3), pages 364-378, November.
    15. Antimiani, Alessandro & Costantini, Valeria & Paglialunga, Elena, 2015. "The sensitivity of climate-economy CGE models to energy-related elasticity parameters: Implications for climate policy design," Economic Modelling, Elsevier, vol. 51(C), pages 38-52.
    16. Augustine O. Ifelebuegu & Kenneth E. Aidelojie & Elijah Acquah-Andoh, 2017. "Brexit and Article 50 of the Treaty of the European Union: Implications for UK Energy Policy and Security," Energies, MDPI, vol. 10(12), pages 1-15, December.
    17. repec:oup:econjl:v:129:y:2019:i:10:p:2722-2744. is not listed on IDEAS
    18. Thomas Sampson, 2017. "Brexit: The Economics of International Disintegration," Journal of Economic Perspectives, American Economic Association, vol. 31(4), pages 163-184, Fall.
    19. Faye Duchin & Stephen H. Levine, 2016. "Combining Multiregional Input-Output Analysis with a World Trade Model for Evaluating Scenarios for Sustainable Use of Global Resources, Part II: Implementation," Journal of Industrial Ecology, Yale University, vol. 20(4), pages 783-791, August.
    20. Glen Peters & Robbie Andrew & James Lennox, 2011. "Constructing An Environmentally-Extended Multi-Regional Input-Output Table Using The Gtap Database," Economic Systems Research, Taylor & Francis Journals, vol. 23(2), pages 131-152.
    21. Begg, Iain & Mushövel, Fabian, 2016. "The economic impact of brexit: jobs, growth and the public finances," LSE Research Online Documents on Economics 67008, London School of Economics and Political Science, LSE Library.
    22. Zeus Guevara & João F. D. Rodrigues, 2016. "Structural transitions and energy use: a decomposition analysis of Portugal 1995--2010," Economic Systems Research, Taylor & Francis Journals, vol. 28(2), pages 202-223, June.
    23. Randall Jackson & Walter Schwarm, 2011. "Accounting foundations for interregional commodity-by-industry input-output models," Letters in Spatial and Resource Sciences, Springer, vol. 4(3), pages 187-196, October.
    24. Elijah Acquah-Andoh & Augustine O. Ifelebuegu & Stephen C. Theophilus, 2019. "Brexit and UK Energy Security: Perspectives from Unconventional Gas Investment and the Effects of Shale Gas on UK Energy Prices," Energies, MDPI, vol. 12(4), pages 1-21, February.
    25. Stefano Merciai & Jannick Schmidt, 2018. "Methodology for the Construction of Global Multi†Regional Hybrid Supply and Use Tables for the EXIOBASE v3 Database," Journal of Industrial Ecology, Yale University, vol. 22(3), pages 516-531, June.
    26. Daniel Moran & Richard Wood, 2014. "Convergence Between The Eora, Wiod, Exiobase, And Openeu'S Consumption-Based Carbon Accounts," Economic Systems Research, Taylor & Francis Journals, vol. 26(3), pages 245-261, September.
    27. Lockwood, Matthew & Froggatt, Antony & Wright, Georgina & Dutton, Joseph, 2017. "The implications of Brexit for the electricity sector in Great Britain: Trade-offs between market integration and policy influence," Energy Policy, Elsevier, vol. 110(C), pages 137-143.
    28. Manfred Lenzen & Daniel Moran & Keiichiro Kanemoto & Arne Geschke, 2013. "Building Eora: A Global Multi-Region Input-Output Database At High Country And Sector Resolution," Economic Systems Research, Taylor & Francis Journals, vol. 25(1), pages 20-49, March.
    29. Heun, Matthew Kuperus & Owen, Anne & Brockway, Paul E., 2018. "A physical supply-use table framework for energy analysis on the energy conversion chain," Applied Energy, Elsevier, vol. 226(C), pages 1134-1162.
    30. Timmer, Marcel P. & Los, Bart & Stehrer, Robert & de Vries, Gaaitzen J., 2016. "An Anatomy of the Global Trade Slowdown based on the WIOD 2016 Release," GGDC Research Memorandum GD-162, Groningen Growth and Development Centre, University of Groningen.
    31. Michał Antoszewski, 2019. "Assessment of Energy-Related Technological Shocks Within a CGE Model for the Polish Economy," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 1, pages 9-45.
    32. Bjarne Madsen & Chris Jensen-Butler, 1999. "Make and Use Approaches to Regional and Interregional Accounts and Models," Economic Systems Research, Taylor & Francis Journals, vol. 11(3), pages 277-300.
    33. Faye Duchin & Stephen H. Levine & Anders Hammer Strømman, 2016. "Combining Multiregional Input-Output Analysis with a World Trade Model for Evaluating Scenarios for Sustainable Use of Global Resources, Part I: Conceptual Framework," Journal of Industrial Ecology, Yale University, vol. 20(4), pages 775-782, August.
    34. Su, Bin & Ang, B.W., 2010. "Input-output analysis of CO2 emissions embodied in trade: The effects of spatial aggregation," Ecological Economics, Elsevier, vol. 70(1), pages 10-18, November.
    35. Zeus Guevara & Edmundo Molina-Pérez & Edith X. M. García & Vanessa Pérez-Cirera, 2019. "Energy and CO2 emission relationships in the NAFTA trading bloc: a multi-regional multi-factor energy input–output approach," Economic Systems Research, Taylor & Francis Journals, vol. 31(2), pages 178-205, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Michael G Pollitt, 2022. "The further economic consequences of Brexit: energy," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 38(1), pages 165-178.
    2. Aramendia, Emmanuel & Heun, Matthew K. & Brockway, Paul E. & Taylor, Peter G., 2022. "Developing a Multi-Regional Physical Supply Use Table framework to improve the accuracy and reliability of energy analysis," Applied Energy, Elsevier, vol. 310(C).
    3. Wang, Kai-Hua & Wen, Cui-Ping & Long, Hai & Moldovan, Nicoleta-Claudia, 2024. "Towards sustainable development: Exploring the spillover effects of green technology innovation on energy markets and economic cycles," Technological Forecasting and Social Change, Elsevier, vol. 203(C).
    4. Guevara, Zeus & Sebastian, Antonio & Carranza Dumon, Fabian, 2022. "Economy-wide impact of conventional development policies in oil-exporting developing countries: The case of Mexico," Energy Policy, Elsevier, vol. 161(C).
    5. Bazzana, Davide & Cohen, Jed J. & Golinucci, Nicolò & Hafner, Manfred & Noussan, Michel & Reichl, Johannes & Rocco, Matteo Vincenzo & Sciullo, Alessandro & Vergalli, Sergio, 2022. "A multi-disciplinary approach to estimate the medium-term impact of COVID-19 on transport and energy: A case study for Italy," Energy, Elsevier, vol. 238(PC).
    6. Berlemann, Michael & Eurich, Marina, 2023. "Die außenwirtschaftlichen Verflechtungen Hamburgs," HWWI Studies, Hamburg Institute of International Economics (HWWI), volume 1, number 281797, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Eivind Lekve Bjelle & Johannes Többen & Konstantin Stadler & Thomas Kastner & Michaela C. Theurl & Karl-Heinz Erb & Kjartan-Steen Olsen & Kirsten S. Wiebe & Richard Wood, 2020. "Adding country resolution to EXIOBASE: impacts on land use embodied in trade," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-25, December.
    2. Rocco, Matteo V. & Golinucci, Nicolò & Ronco, Stefano M. & Colombo, Emanuela, 2020. "Fighting carbon leakage through consumption-based carbon emissions policies: Empirical analysis based on the World Trade Model with Bilateral Trades," Applied Energy, Elsevier, vol. 274(C).
    3. Dr. Markus Flaute & Dr. Christian Lutz & Martin Distelkamp, 2017. "Der Einsatz von MRIO zur Berechnung der Fußabdrücke von Nationen – eine Anwendung der EXIOBASE-Datenbank," GWS Discussion Paper Series 17-7, GWS - Institute of Economic Structures Research.
    4. Aramendia, Emmanuel & Heun, Matthew K. & Brockway, Paul E. & Taylor, Peter G., 2022. "Developing a Multi-Regional Physical Supply Use Table framework to improve the accuracy and reliability of energy analysis," Applied Energy, Elsevier, vol. 310(C).
    5. Zhang, Zhonghua & Zhao, Yuhuan & Su, Bin & Zhang, Yongfeng & Wang, Song & Liu, Ya & Li, Hao, 2017. "Embodied carbon in China’s foreign trade: An online SCI-E and SSCI based literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 68(P1), pages 492-510.
    6. Chen, B. & Yang, Q. & Zhou, Sili & Li, J.S. & Chen, G.Q., 2017. "Urban economy's carbon flow through external trade: Spatial-temporal evolution for Macao," Energy Policy, Elsevier, vol. 110(C), pages 69-78.
    7. Ana Venâncio & João Pereira dos Santos, 2021. "The effect of Brexit on British workers living in the EU," Working Papers REM 2021/0197, ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa.
    8. Garcia-Lazaro, Aida & Mistak, Jakub & Gulcin Ozkan, F., 2021. "Supply chain networks, trade and the Brexit deal: a general equilibrium analysis," Journal of Economic Dynamics and Control, Elsevier, vol. 133(C).
    9. Tarek A. Hassan & Stephan Hollander & Laurence Van Lent & Ahmed Tahoun, 2024. "The Global Impact of Brexit Uncertainty," Journal of Finance, American Finance Association, vol. 79(1), pages 413-458, February.
    10. Viktoras Kulionis, 2018. "Constructing energy accounts for WIOD 2016 release," Papers 1810.07112, arXiv.org.
    11. Campos, Nauro F., 2019. "B for Brexit: A Survey of the Economics Academic Literature," IZA Discussion Papers 12134, Institute of Labor Economics (IZA).
    12. Rocco, Matteo V. & Forcada Ferrer, Rafael J. & Colombo, Emanuela, 2018. "Understanding the energy metabolism of World economies through the joint use of Production- and Consumption-based energy accountings," Applied Energy, Elsevier, vol. 211(C), pages 590-603.
    13. Tarek Alexander Hassan & Stephan Hollander & Laurence van Lent & Ahmed Tahoun, 2020. "The Global Impact of Brexit Uncertainty," Boston University - Department of Economics - The Institute for Economic Development Working Papers Series dp-332, Boston University - Department of Economics.
    14. Thomas Wiedmann, 2017. "An input–output virtual laboratory in practice – survey of uptake, usage and applications of the first operational IELab," Economic Systems Research, Taylor & Francis Journals, vol. 29(2), pages 296-312, April.
    15. Fernández-Amador, Octavio & Francois, Joseph F. & Oberdabernig, Doris A. & Tomberger, Patrick, 2023. "Energy footprints and the international trade network: A new dataset. Is the European Union doing it better?," Ecological Economics, Elsevier, vol. 204(PA).
    16. Swati Dhingra & Rebecca Freeman & Hanwei Huang, 2023. "The Impact of Non‐tariff Barriers on Trade and Welfare," Economica, London School of Economics and Political Science, vol. 90(357), pages 140-177, January.
    17. Born, Benjamin & Müller, Gernot J. & Schularick, Moritz & Sedlacek, Petr, 2017. "The economic consequences of the Brexit Vote," LSE Research Online Documents on Economics 87174, London School of Economics and Political Science, LSE Library.
    18. Breinlich, Holger & Leromain, Elsa & Novy, Dennis & Sampson, Thomas, 2019. "Exchange Rates and Consumer Prices: Evidence from Brexit," CAGE Online Working Paper Series 447, Competitive Advantage in the Global Economy (CAGE).
    19. Harald Oberhofer & Michael Pfaffermayr, 2021. "Estimating the trade and welfare effects of Brexit: A panel data structural gravity model," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 54(1), pages 338-375, February.
    20. Tatsuki Ueda, 2022. "Structural Decomposition Analysis of Japan’s Energy Transitions and Related CO2 Emissions in 2005–2015 Using a Hybrid Input-Output Table," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 81(4), pages 763-786, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:274:y:2020:i:c:s0306261920308126. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.