1. Assessing the energy and socio-macroeconomic impacts of the EV transition: A UK case study 2020–2050.
- Author
-
Nieto, Jaime, Brockway, Paul E., Sakai, Marco, and Barrett, John
- Subjects
- *
ECONOMIC change , *ELECTRIC automobiles , *ECONOMIC systems , *ELECTRIC vehicles , *INTERNAL combustion engines , *FUEL switching , *ENERGY consumption - Abstract
The electric vehicle (EV) transition is underway in the UK and many other countries worldwide, switching from fossil fuel powered internal combustion engine (ICE) road transport to EVs that can be powered by renewable electricity. Whilst the projected energy and carbon reduction impacts are well understood, we have only a partial view of the potential socio-macroeconomic effects of the EV transition, i.e. the impacts on GDP and jobs. Common energy-economy models feature only limited energy-economy integration, and only assign a small role for energy in economic growth. Thus whilst economic changes such as increases to investment can feed into macroeconomic impact assessment, the impacts of the energy system changes are potentially underestimated. In response, we use a novel macro-econometric model – MARCO-UK – to conduct a whole system analysis with two main scenarios: an ICE baseline (with no EV transition) and 100% EV transition scenario to 2050. We investigate the effects of the scenarios on the UK's energy system (efficiency, energy services, rebound) and economic system (employment, GDP, debt), under different conditions of investment, rebound and electricity prices. We find the most significant impacts stem from energy system changes, with annual economic growth rising from 1.71%/year (baseline) to 2.25%/year in the main EV scenario. In contrast, the impacts from economic investment changes are much lower in scale. Therefore, the socio-macroeconomic benefits of the EV transition may be underestimated. We also find that overall long-term economy-wide rebound in our central EV scenario is 76%, which means the energy savings from the EV transition may be less than hoped. Overall, our analysis identifies potential trade-offs regarding the labour market, levels of indebtedness, energy rebound and associated carbon emissions that should be taken into consideration. • The energy and socioeconomic impacts of the UK's EV transition are not well known. • We model energy changes to efficiency and fuel switch to electricity. • Most significant impacts stem from energy system change not investment stimulus. • The EV transition could realise an extra 0.5%/yr of GDP growth. • But economy-wide rebound effects reduce energy savings from the EV transition. [ABSTRACT FROM AUTHOR]
- Published
- 2024
- Full Text
- View/download PDF