The environmental 'trade balance' between Scotland and the rest of the UK: an inter-regional input-output and SAM analysis

Research output: Contribution to journalArticle

Abstract

We use an inter-regional input-output (IO) and social accounting matrix (SAM) pollution attribution framework to serve as a platform for sub-national environmental attribution and trade balance analysis. While the existence of significant data problems mean that the quantitative results of this study should be regarded as provisional, the inter-regional economy-environment IO and SAM framework for Scotland and the rest of the UK (RUK) allows an illustrative analysis of some very important issues. There are two key findings. The first is that there are large environmental spillovers between the regions of the UK. This has implications in terms of the devolution of responsibility for achieving targets for reductions in emissions levels and the need for policy co-ordination between the UK national and devolved governments. The second finding is that whilst Scotland runs an economic trade deficit with RUK, the environmental trade balance relationship for the main greenhouse gas, CO2, runs in the opposite direction. In other words, the findings of this study suggest the existence of a CO2 trade surplus between Scotland and the rest of the UK. This suggests that Scotland is bearing a net loss in terms of pollutants as a result of inter-union trade. However, if Scotland can carry out key activities, such as electricity generation, using less polluting technology, it is better for the UK as a whole if this type of relationship exists. Thus, the environmental trade balance is an important part of the devolution settlement.
LanguageEnglish
Pages1-26
Number of pages25
JournalStrathclyde Discussion Papers in Economics
Issue number04-21
Publication statusPublished - Jan 2003

Fingerprint

Trade balance
Social accounting matrix
Scotland
Co2
Attribution
Devolution
Spillover
Trade surplus
Economics
Policy coordination
Greenhouse gases
Pollution
Government
Trade deficit
Trade unions
Electricity generation
Regional economy
Responsibility

Keywords

  • social accounting matrix
  • SAM
  • input-output
  • Scotland
  • United Kingdom
  • environment
  • trade balance

Cite this

@article{e24971079fc34acd9163f95b39868f71,
title = "The environmental 'trade balance' between Scotland and the rest of the UK: an inter-regional input-output and SAM analysis",
abstract = "We use an inter-regional input-output (IO) and social accounting matrix (SAM) pollution attribution framework to serve as a platform for sub-national environmental attribution and trade balance analysis. While the existence of significant data problems mean that the quantitative results of this study should be regarded as provisional, the inter-regional economy-environment IO and SAM framework for Scotland and the rest of the UK (RUK) allows an illustrative analysis of some very important issues. There are two key findings. The first is that there are large environmental spillovers between the regions of the UK. This has implications in terms of the devolution of responsibility for achieving targets for reductions in emissions levels and the need for policy co-ordination between the UK national and devolved governments. The second finding is that whilst Scotland runs an economic trade deficit with RUK, the environmental trade balance relationship for the main greenhouse gas, CO2, runs in the opposite direction. In other words, the findings of this study suggest the existence of a CO2 trade surplus between Scotland and the rest of the UK. This suggests that Scotland is bearing a net loss in terms of pollutants as a result of inter-union trade. However, if Scotland can carry out key activities, such as electricity generation, using less polluting technology, it is better for the UK as a whole if this type of relationship exists. Thus, the environmental trade balance is an important part of the devolution settlement.",
keywords = "social accounting matrix, SAM, input-output, Scotland, United Kingdom, environment, trade balance",
author = "P.G. McGregor and L. Ferguson and J.K. Swales and K. Turner",
year = "2003",
month = "1",
language = "English",
pages = "1--26",
journal = "Strathclyde Discussion Papers in Economics",
issn = "0959-5635",
number = "04-21",

}

TY - JOUR

T1 - The environmental 'trade balance' between Scotland and the rest of the UK: an inter-regional input-output and SAM analysis

AU - McGregor, P.G.

AU - Ferguson, L.

AU - Swales, J.K.

AU - Turner, K.

PY - 2003/1

Y1 - 2003/1

N2 - We use an inter-regional input-output (IO) and social accounting matrix (SAM) pollution attribution framework to serve as a platform for sub-national environmental attribution and trade balance analysis. While the existence of significant data problems mean that the quantitative results of this study should be regarded as provisional, the inter-regional economy-environment IO and SAM framework for Scotland and the rest of the UK (RUK) allows an illustrative analysis of some very important issues. There are two key findings. The first is that there are large environmental spillovers between the regions of the UK. This has implications in terms of the devolution of responsibility for achieving targets for reductions in emissions levels and the need for policy co-ordination between the UK national and devolved governments. The second finding is that whilst Scotland runs an economic trade deficit with RUK, the environmental trade balance relationship for the main greenhouse gas, CO2, runs in the opposite direction. In other words, the findings of this study suggest the existence of a CO2 trade surplus between Scotland and the rest of the UK. This suggests that Scotland is bearing a net loss in terms of pollutants as a result of inter-union trade. However, if Scotland can carry out key activities, such as electricity generation, using less polluting technology, it is better for the UK as a whole if this type of relationship exists. Thus, the environmental trade balance is an important part of the devolution settlement.

AB - We use an inter-regional input-output (IO) and social accounting matrix (SAM) pollution attribution framework to serve as a platform for sub-national environmental attribution and trade balance analysis. While the existence of significant data problems mean that the quantitative results of this study should be regarded as provisional, the inter-regional economy-environment IO and SAM framework for Scotland and the rest of the UK (RUK) allows an illustrative analysis of some very important issues. There are two key findings. The first is that there are large environmental spillovers between the regions of the UK. This has implications in terms of the devolution of responsibility for achieving targets for reductions in emissions levels and the need for policy co-ordination between the UK national and devolved governments. The second finding is that whilst Scotland runs an economic trade deficit with RUK, the environmental trade balance relationship for the main greenhouse gas, CO2, runs in the opposite direction. In other words, the findings of this study suggest the existence of a CO2 trade surplus between Scotland and the rest of the UK. This suggests that Scotland is bearing a net loss in terms of pollutants as a result of inter-union trade. However, if Scotland can carry out key activities, such as electricity generation, using less polluting technology, it is better for the UK as a whole if this type of relationship exists. Thus, the environmental trade balance is an important part of the devolution settlement.

KW - social accounting matrix

KW - SAM

KW - input-output

KW - Scotland

KW - United Kingdom

KW - environment

KW - trade balance

UR - http://www.strath.ac.uk/media/departments/economics/researchdiscussionpapers/2004/media_34086_en.pdf

M3 - Article

SP - 1

EP - 26

JO - Strathclyde Discussion Papers in Economics

T2 - Strathclyde Discussion Papers in Economics

JF - Strathclyde Discussion Papers in Economics

SN - 0959-5635

IS - 04-21

ER -