The importance of heat pump cost reduction and domestic supply chain development in the presence of persisting energy price shocks
Katris, Antonios and Turner, Karen and Calvillo, Christian F. and Zhou, Long (2024) The importance of heat pump cost reduction and domestic supply chain development in the presence of persisting energy price shocks. Energy Strategy Reviews, 55. 101518. ISSN 2211-467X (https://doi.org/10.1016/j.esr.2024.101518)
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Abstract
In this paper we conduct economy-wide scenario simulations to investigate whether and how the wider economic stimulus associated with deploying heat pumps in the UK may help mitigate the macroeconomic and distributional impacts of persistently high electricity and gas prices. Our results show that expansionary processes triggered by producing and installing heat pumps can help offset contractionary pressures associated with higher energy prices. However, outcomes depend on the extent of domestic supply chain content in manufacturing heat pumps, on installation costs to households, on how and where government revenues accrue. Moreover, the relative importance of drivers varies over time. For example, higher purchase and installation costs may support a greater initial stimulus via producer and domestic supply chain gains, despite the greater cost burden on households. However, over time, cost reductions are required to deliver the most favourable economy-wide outcomes.
ORCID iDs
Katris, Antonios ORCID: https://orcid.org/0000-0001-9352-2307, Turner, Karen, Calvillo, Christian F. ORCID: https://orcid.org/0000-0002-5495-6601 and Zhou, Long;-
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Item type: Article ID code: 90463 Dates: DateEvent3 September 2024Published3 September 2024Published Online28 August 2024AcceptedSubjects: Technology > Electrical engineering. Electronics Nuclear engineering > Production of electric energy or power
Technology > Engineering (General). Civil engineering (General) > Environmental engineeringDepartment: Strategic Research Themes > Energy
Faculty of Humanities and Social Sciences (HaSS) > Government and Public Policy > PoliticsDepositing user: Pure Administrator Date deposited: 03 Sep 2024 15:39 Last modified: 07 Oct 2024 00:27 Related URLs: URI: https://strathprints.strath.ac.uk/id/eprint/90463