National Productivity Week 27th November 2023 | Visit Website

A diverse community of
leading experts, policymakers
and practitioners

The Institute’s key research themes
are led by ten academic partners
spread across the UK.

Businesses are crucial to solving
the UK’s productivity problems.

We’re a UK-wide research
organisation exploring what
productivity means for business

Businesses are crucial to solving
the UK’s productivity problems.


Productivity implications of the move to Net Zero

We use dynamic general equilibrium (DGE) models to understand the effects on productivity of the move to Net Zero in the United Kingdom. Specifically, we first look at the effects of the policies put in place to achieve a reduction in greenhouse gas emissions on productivity. We distinguish between the effects in the short run – where use of fossil fuel is a complement to other factors of production – and the medium run – where fossil fuels can be substituted for by renewable energy and other factors of production. We then consider the long run effects of moving to Net Zero on the efficiency of production, making allowance for the potential productivity-enhancing effects of investment in green technology.

Lead Researcher Stephen Millard (NIESR)

Collaborators Karen Mayhew (Bank of England), Sandra Batten (Bank of England)

National Institute Of Economic And Social Research