Years Active: 2014-2019

This programme focuses on interactions between the UK energy system and the UK economy and society; and examines the potential implications on policies, markets and prices and affordability. It aims to explore the economic implications of energy and low carbon futures and the complexity of this relationship.

A range of different methodologies and analytical approaches will be used, including macro-economic modelling, detailed sectoral and supply chain analysis, and investigation of the underlying drivers of energy demand, the relationship between innovation and finance and the analysis of public attitudes and values in relation to energy prices and issues of trust.

The theme will develop our understanding of the relationship between energy and economic growth, and determine the consequences of different energy pathways for economic growth, employment, prices and trade flows. It will identify additional economy-wide policy options and strategies for energy demand reduction. It will explore the relationship between the State, private investors and markets and how the State could actively support more sustainable, innovation-led growth.

The theme will also explore how public attitudes and values about energy system change relate to issues of fairness, affordability and trust; and how these values influence decision-making.