Understanding wider economy implications and equity outcomes


This project is focusing on the Delivery Models for Accelerating Net Zero Transition Challenge. In this context, the scope of the project is to explore the potential outcomes of different energy demand solutions, as well as pathways that enable us to address the energy demand challenges associated with the net zero transition. Specifically, we will identify the equity, energy demand reduction and broader economic outcomes associated with energy demand solutions and pathways.

Crucially though, we aim to understand to what extent better targeting the proposed policies and actions to the most-at-need households can affect the expected outcomes, both from an economy-wide and an equity perspective. We aim to identify how different targeting can improve the equity outcomes that can help deliver a just transition to a net zero economy. For this purpose, we will also explore the implications of different policy options, as an alternative approach to improve the potential outcomes, where different targeting may not be sufficient and/or appropriate.

For this project we will use the type of economy-wide modelling employed by large domestic and international institutions, such as the HM Treasury and the European Commission. This will ensure the credibility of our analyses across a wide range of UK and international audiences, while we can benefit from the existing body of academic and policy literature. However, we will also utilise the emerging insights from other projects within EDRC so that our analyses can also be informed by the most recent developments in academic research.

Research questions:

  • What are the potential equity and economy-wide benefits of subsidising energy efficiency improvement and heat decarbonisation actions for low-income households?
  • How are the potential outcomes likely to be affected by different energy demand, policy and governance solutions?