Impact of alternative electricity generation technologies on the Scottish economy: An illustrative input—output analysis

Abstract

UK energy policy is at a critical juncture, with major changes in the electricity generation mix in prospect. In Scotland, significant reductions in electricity-generating capacity are expected as coal- and nuclear-powered stations close, and renewable technologies provide a growing share of total electricity. Despite these radical changes, there has as yet been no assessment of the likely implications for the Scottish economy. This paper explores the likely systemwide impact of these changes on aggregate and sectoral outputs and employment levels using an input-output analysis that separately identifies eight generating technologies. The results suggest the need for careful disaggregation of the electricity generation sector and emphasize the economic distinctiveness of individual generation technologies.