Proactive Energy-Environment Policy Strategies: A Role for Input — Output Analysis?

Abstract

This paper contains a consideration of the recent arguments in favour of adopting ‘anticipate and prevent’ or ‘proactive’ energy — environment policy strategies, in place of the ‘reactive’ strategies that are a feature of many current approaches to policymaking in this area. The roles that energy — environment modelling might play in investigating alternative scenarios and proactive policy strategies are then examined. The focus is on the advantages and disadvantages of using Input — Output analysis and related mathematical programming techniques to provide information for the policymaking process. Of course, Input — Output analysis is neither the only nor the ideal approach to energy — environment modelbuilding. However, despite acknowledged conceptual and practical limitations of applying Input — Output analysis in this area, it is suggested there is a case for considering its further application, particularly in the context of the United Kingdom, not least because it enables a general equilibrium approach to be implemented.