Who Ultimately Pays for and Who Gains from the Electricity Network Upgrade for Electric Vehicles (EVs)?

Research output: Working paper

Abstract

We investigate the question of who ultimately pays and who gains from upgrading the power network to facilitate the roll out of EVs required, for example, under ambitious targets set by the Scottish and UK Governments. We use a multi-sector computable general equilibrium (CGE) model for the UK economy to consider a network upgrade and EV penetration scenario for the period to 2030. We find that investment to enable network upgrades results in net negative impacts on real income available for spending across all UK households. This is due to the impact of time-limited large-scale investment on economic activity and consumer prices in the presence of capacity constraints, exacerbated by costs being passed on to electricity consumers through higher bills. But the lowest income households – the group of greatest concern to policymakers – are impacted least and initially enjoy small net gains under some scenarios. Moreover, the EV uptake delivers sufficient gains to deliver net positive impacts on all household incomes, with sustained expansion in GDP and employment across the economy. The key driver is a greater reliance on UK supply chains with the shift away from more import-intensive petrol and diesel fuelled vehicles towards electric ones.
LanguageEnglish
Place of PublicationGlasgow
PublisherUniversity of Strathclyde
Pages1-34
Number of pages34
DOIs
Publication statusPublished - 8 May 2019

Fingerprint

Electric vehicles
Electricity
Supply chains
Economics
Upgrade
Electric vehicle
Costs
Scenarios
Household

Keywords

  • renewable energy policy
  • climate change
  • power network
  • electric vehicles
  • EVs
  • energy efficiency
  • transport
  • decarbonisation
  • GDP
  • Computable General Equilibrium
  • domestic supply chains
  • electricity network

Cite this

@techreport{95f57dc2801344b793f2570e4787bd1f,
title = "Who Ultimately Pays for and Who Gains from the Electricity Network Upgrade for Electric Vehicles (EVs)?",
abstract = "We investigate the question of who ultimately pays and who gains from upgrading the power network to facilitate the roll out of EVs required, for example, under ambitious targets set by the Scottish and UK Governments. We use a multi-sector computable general equilibrium (CGE) model for the UK economy to consider a network upgrade and EV penetration scenario for the period to 2030. We find that investment to enable network upgrades results in net negative impacts on real income available for spending across all UK households. This is due to the impact of time-limited large-scale investment on economic activity and consumer prices in the presence of capacity constraints, exacerbated by costs being passed on to electricity consumers through higher bills. But the lowest income households – the group of greatest concern to policymakers – are impacted least and initially enjoy small net gains under some scenarios. Moreover, the EV uptake delivers sufficient gains to deliver net positive impacts on all household incomes, with sustained expansion in GDP and employment across the economy. The key driver is a greater reliance on UK supply chains with the shift away from more import-intensive petrol and diesel fuelled vehicles towards electric ones.",
keywords = "renewable energy policy, climate change, power network, electric vehicles, EVs, energy efficiency, transport, decarbonisation, GDP, Computable General Equilibrium, domestic supply chains, electricity network",
author = "Karen Turner and Oluwafisayo Alabi and Christian Calvillo and Gioele Figus and Antonios Katris",
note = "Published by the University of Strathclyde's Centre for Energy Policy, as part of the International Public Policy Institute (IPPI), in collaboration with the Fraser of Allander Institute.",
year = "2019",
month = "5",
day = "8",
doi = "10.17868/67737",
language = "English",
pages = "1--34",
publisher = "University of Strathclyde",
type = "WorkingPaper",
institution = "University of Strathclyde",

}

TY - UNPB

T1 - Who Ultimately Pays for and Who Gains from the Electricity Network Upgrade for Electric Vehicles (EVs)?

AU - Turner, Karen

AU - Alabi, Oluwafisayo

AU - Calvillo, Christian

AU - Figus, Gioele

AU - Katris, Antonios

N1 - Published by the University of Strathclyde's Centre for Energy Policy, as part of the International Public Policy Institute (IPPI), in collaboration with the Fraser of Allander Institute.

PY - 2019/5/8

Y1 - 2019/5/8

N2 - We investigate the question of who ultimately pays and who gains from upgrading the power network to facilitate the roll out of EVs required, for example, under ambitious targets set by the Scottish and UK Governments. We use a multi-sector computable general equilibrium (CGE) model for the UK economy to consider a network upgrade and EV penetration scenario for the period to 2030. We find that investment to enable network upgrades results in net negative impacts on real income available for spending across all UK households. This is due to the impact of time-limited large-scale investment on economic activity and consumer prices in the presence of capacity constraints, exacerbated by costs being passed on to electricity consumers through higher bills. But the lowest income households – the group of greatest concern to policymakers – are impacted least and initially enjoy small net gains under some scenarios. Moreover, the EV uptake delivers sufficient gains to deliver net positive impacts on all household incomes, with sustained expansion in GDP and employment across the economy. The key driver is a greater reliance on UK supply chains with the shift away from more import-intensive petrol and diesel fuelled vehicles towards electric ones.

AB - We investigate the question of who ultimately pays and who gains from upgrading the power network to facilitate the roll out of EVs required, for example, under ambitious targets set by the Scottish and UK Governments. We use a multi-sector computable general equilibrium (CGE) model for the UK economy to consider a network upgrade and EV penetration scenario for the period to 2030. We find that investment to enable network upgrades results in net negative impacts on real income available for spending across all UK households. This is due to the impact of time-limited large-scale investment on economic activity and consumer prices in the presence of capacity constraints, exacerbated by costs being passed on to electricity consumers through higher bills. But the lowest income households – the group of greatest concern to policymakers – are impacted least and initially enjoy small net gains under some scenarios. Moreover, the EV uptake delivers sufficient gains to deliver net positive impacts on all household incomes, with sustained expansion in GDP and employment across the economy. The key driver is a greater reliance on UK supply chains with the shift away from more import-intensive petrol and diesel fuelled vehicles towards electric ones.

KW - renewable energy policy

KW - climate change

KW - power network

KW - electric vehicles

KW - EVs

KW - energy efficiency

KW - transport

KW - decarbonisation

KW - GDP

KW - Computable General Equilibrium

KW - domestic supply chains

KW - electricity network

UR - https://doi.org/10.17868/67741

UR - https://www.strath.ac.uk/research/internationalpublicpolicyinstitute/centreforenergypolicy/

U2 - 10.17868/67737

DO - 10.17868/67737

M3 - Working paper

SP - 1

EP - 34

BT - Who Ultimately Pays for and Who Gains from the Electricity Network Upgrade for Electric Vehicles (EVs)?

PB - University of Strathclyde

CY - Glasgow

ER -