麻豆淫院

The green transition will boost productivity across the UK economy, suggests new research in the journal Climate Policy.

Researchers have analyzed the impacts of the low-carbon transition on power, transport and heating. With renewable energy now cheaper than fossil fuels in most of the world鈥攁nd still getting cheaper鈥攖he findings show these three industries benefit directly from the transition.

But the far larger downstream effect is an economy-wide productivity boost, as all businesses gain from cheaper power, transport and heating.

The research team鈥攍ed by the universities of Exeter and Manchester鈥攚arn that this boost depends on cheaper energy prices being passed on to consumers, not kept as profits by energy companies.

The study is published to coincide with the launch of Exeter Climate Policy, which advises policymakers on reaching a low-carbon future.

"The power, transport and heating industries are not themselves leading sources of productivity growth in the UK," said Dr. Jean-Francois Mercure, who leads Exeter Climate Policy. "However, if these energy services become any cheaper, every other sector across the entire economy can operate more cheaply, freeing unspent income free for other things, causing economic growth."

Commenting on whether cheaper energy production necessarily results in cheaper energy for businesses and households, Dr. Mercure said, "This is not always the case currently. For example, as long as the cost of gas is used to set electricity prices, the benefits of cheaper solar and wind energy will continue to be captured as profits by producers, the grid operator or electricity distributors, whose shareholders may keep it as wealth and not necessarily spend it back again."

Global race

The study analyzes the UK economy from now to 2035. The findings are relevant to other nations that import substantial fossil-fuel energy. However, for large fossil fuel producers, economic losses could exceed the gains.

Dimitri Zenghelis, from the University of Cambridge, said, "The paper makes the case not just for climate policies, but for smart economic policy more broadly. We provide compelling evidence to show how this is a global race for competitive advantage that the UK can't afford to sit out. For an energy importer like the UK, the clean transition is a win-win. Even fossil fuel exporters can benefit, though it's time to diversify fast."

Economist and co-author Hector Pollitt said, "It's time to move on from the old way of thinking. The story that there must be a trade-off between reducing emissions and growing our economy was never true鈥攖he UK's offshore wind industry proves that. Technology drives productivity growth, and green technology is no exception."