IDEAS home Printed from https://ideas.repec.org/a/oup/oxford/v38y2022i1p165-178..html
   My bibliography  Save this article

The further economic consequences of Brexit: energy

Author

Listed:
  • Michael G Pollitt

Abstract

:The UK left the European single market in energy on 31 December 2020, having been a leading light in its promotion. It entered into a new energy relationship with the EU-27 as outlined in the EU–UK Trade and Cooperation Agreement (TCA) on 1 January 2021. This paper discusses what has happened to the UK energy sector since the Brexit referendum of June 2016. Since our previous paper on this topic in 2017, there has been a significant clarification in the impact of Brexit on the energy sector in the UK. We outline what the TCA says about energy. We then discuss the current and potential future effects of Brexit on the UK electricity and gas systems in turn. We observe that the likely economic welfare impacts on electricity are larger than the impacts on gas, but the overall microeconomic impact appears likely to be modest (but negative). We offer a number of concluding observations.

Suggested Citation

  • 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.
    • Handle: RePEc:oup:oxford:v:38:y:2022:i:1:p:165-178.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/oxrep/grab044
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

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

    Other versions of this item:

    References listed on IDEAS

    as
    1. 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.
    2. Guo, Bowei & Newbery, David, 2021. "The cost of uncoupling GB interconnectors," Energy Policy, Elsevier, vol. 158(C).
    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. Geske, Joachim & Green, Richard & Staffell, Iain, 2020. "Elecxit: The cost of bilaterally uncoupling British-EU electricity trade," Energy Economics, Elsevier, vol. 85(C).
    5. 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).
    6. Cairney, Paul & McHarg, Aileen & McEwen, Nicola & Turner, Karen, 2019. "How to conceptualise energy law and policy for an interdisciplinary audience: The case of post-Brexit UK," Energy Policy, Elsevier, vol. 129(C), pages 459-466.
    7. Philip Mayer & Christopher Stephen Ball & Stefan Vögele & Wilhelm Kuckshinrichs & Dirk Rübbelke, 2019. "Analyzing Brexit: Implications for the Electricity System of Great Britain," Energies, MDPI, vol. 12(17), pages 1-27, August.
    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. Sultan Kaheel & Khalifa Aliyu Ibrahim & Gasem Fallatah & Venkatasubramanian Lakshminarayanan & Patrick Luk & Zhenhua Luo, 2023. "Advancing Hydrogen: A Closer Look at Implementation Factors, Current Status and Future Potential," Energies, MDPI, vol. 16(24), pages 1-29, December.
    2. Pollitt, Michael G. & von der Fehr, Nils-Henrik M. & Willems, Bert & Banet, Catherine & Le Coq, Chloé & Chyong, Chi Kong, 2024. "Recommendations for a future-proof electricity market design in Europe in light of the 2021-23 energy crisis," Energy Policy, Elsevier, vol. 188(C).
    3. Cemal Zehir & Mustafa Yücel & Alex Borodin & Sevgi Yücel & Songül Zehir, 2023. "Strategies in Energy Supply: A Social Network Analysis on the Energy Trade of the European Union," Energies, MDPI, vol. 16(21), pages 1-15, October.
    4. Stephen J. Ramos & Umit Yilmaz, 2023. "Energy transition and city–port symbiosis in biomass import–export regions," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 25(2), pages 406-428, June.

    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. Guo, Bowei & Newbery, David, 2021. "The cost of uncoupling GB interconnectors," Energy Policy, Elsevier, vol. 158(C).
    2. Philip Mayer & Christopher Stephen Ball & Stefan Vögele & Wilhelm Kuckshinrichs & Dirk Rübbelke, 2019. "Analyzing Brexit: Implications for the Electricity System of Great Britain," Energies, MDPI, vol. 12(17), pages 1-27, August.
    3. 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.
    4. Ahmed Gailani & Tracey Crosbie & Maher Al-Greer & Michael Short & Nashwan Dawood, 2020. "On the Role of Regulatory Policy on the Business Case for Energy Storage in Both EU and UK Energy Systems: Barriers and Enablers," Energies, MDPI, vol. 13(5), pages 1-20, March.
    5. 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).
    6. Chen, Hao & Cui, Jian & Song, Feng & Jiang, Zhigao, 2022. "Evaluating the impacts of reforming and integrating China's electricity sector," Energy Economics, Elsevier, vol. 108(C).
    7. Do, Hung Xuan & Nepal, Rabindra & Jamasb, Tooraj, 2020. "Electricity market integration, decarbonisation and security of supply: Dynamic volatility connectedness in the Irish and Great Britain markets," Energy Economics, Elsevier, vol. 92(C).
    8. Liu, Yang & Jiang, Zhigao & Guo, Bowei, 2022. "Assessing China’s provincial electricity spot market pilot operations: Lessons from Guangdong province," Energy Policy, Elsevier, vol. 164(C).
    9. Olga Porro & Francesc Pardo-Bosch & Núria Agell & Mónica Sánchez, 2020. "Understanding Location Decisions of Energy Multinational Enterprises within the European Smart Cities’ Context: An Integrated AHP and Extended Fuzzy Linguistic TOPSIS Method," Energies, MDPI, vol. 13(10), pages 1-29, May.
    10. Castro, Manuel, 2017. "Assessing the risk profile to security of supply in the electricity market of Great Britain," Energy Policy, Elsevier, vol. 111(C), pages 148-156.
    11. Newbery, David & Pollitt, Michael G. & Ritz, Robert A. & Strielkowski, Wadim, 2018. "Market design for a high-renewables European electricity system," Renewable and Sustainable Energy Reviews, Elsevier, vol. 91(C), pages 695-707.
    12. Geoffrey Mabea, 2023. "Simulating Generalised Locational Marginal Pricing for Power Markets in East Africa," International Journal of Energy Economics and Policy, Econjournals, vol. 13(5), pages 450-460, September.
    13. Hannes R. Stephan, 2020. "Shaping the Scope of Conflict in Scotland’s Fracking Debate: Conflict Management and the Narrative Policy Framework," Review of Policy Research, Policy Studies Organization, vol. 37(1), pages 64-91, January.
    14. Changgi Min, 2020. "Impact Analysis of Transmission Congestion on Power System Flexibility in Korea," Energies, MDPI, vol. 13(9), pages 1-11, May.
    15. Newbery, David & Gissey, Giorgio Castagneto & Guo, Bowei & Dodds, Paul E., 2019. "The private and social value of British electrical interconnectors," Energy Policy, Elsevier, vol. 133(C).
    16. McQuinn, Kieran & Foley, Daniel & O'Toole, Conor, 2017. "Quarterly Economic Commentary, Summer 2017," Forecasting Report, Economic and Social Research Institute (ESRI), number QEC20172, march.
    17. Rydin, Yvonne & Turcu, Catalina, 2019. "Revisiting urban energy initiatives in the UK: Declining local capacity in a shifting policy context," Energy Policy, Elsevier, vol. 129(C), pages 653-660.
    18. 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).
    19. Jha, Amit Prakash & Mahajan, Aarushi & Singh, Sanjay Kumar & Kumar, Piyush, 2022. "Renewable energy proliferation for sustainable development: Role of cross-border electricity trade," Renewable Energy, Elsevier, vol. 201(P1), pages 1189-1199.
    20. 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).

    More about this item

    Keywords

    electricity; gas; Trade and Cooperation Agreement; market coupling;
    All these keywords.

    JEL classification:

    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities

    Statistics

    Access and download statistics

    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:oup:oxford:v:38:y:2022:i:1:p:165-178.. 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: Oxford University Press (email available below). General contact details of provider: https://academic.oup.com/oxrep .

    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.