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Case study: Understanding the

environmental impact
North East Regional of economic growth and
Information Partnership consumer spending

This study has provided the North East Regional


Information Partnership (NERIP) with detailed
projections of changes in the distribution and
consumption of different groups in the North East, linked
to greenhouse gas and CO2 emissions. Experian’s unique,
quantitative approach provides the basis for policy that
helps economic growth while respecting environmental
targets.

Challenge Understanding the connection


There is much debate on the impact between economic growth,
of consumption on the environment, consumption and environmental
in particular how economic growth impacts is crucial to promoting
directly relates to consumption. sustainable economic growth.
NERIP, which provides a range of
data to decision makers in the North Solution
East of England, sought to develop a In order to answer the question
quantitative understanding of probable ‘if the region was successful in
changes in consumption patterns, meeting its economic objectives what
along with the environmental impacts environmental impacts would this
that are likely to arise as economic have?’, Experian partnered with the
performance in the region improves. Stockholm Environment Institute
(SEI), developing an approach which
estimated greenhouse gas and CO2
emissions for 61 national-level Mosaic
household segments1. Our solution
“The Experian/SEI team delivered a unique and set out three economic scenarios,
quantifying the relationship between
innovative study that will help target efforts to economic growth, population change,
reduce carbon emissions across the North East. changes in consumption and the
resulting environmental impacts.
The combination of the necessary expertise and
a good and professional relationship resulted in a Use of Mosaic enabled NERIP to
evaluate the environmental impact
piece of research that is as good as the best.” of different household groups and
will enable regional institutions to
David Mell formulate targeted policy that focuses
Modelling Manager on those household types which
are most likely to have the greatest
NERIP negative environmental impact as the
regional economy grows.
Cardinal Place Embankment House 160 Dundee Street
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London Nottingham EH11 1DQ
SW1E 5JL NG80 1EH T 44 (0) 131 228 8030
T 44 (0) 203 042 4000 T 44 (0) 115 941 0888 F 44 (0) 131 228 8040
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www.experian.co.uk/publicsector

40 Implementation Results
The project was anchored in economic At an overall level, the study
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Pounds spent per hh

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growth projections for the North East indicated that whilst the region is
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(£000s)

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over a twenty year period, charting likely to see relative decoupling2


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0 changes in income and the associated between economic growth and


transformation of the make-up and greenhouse gas emissions
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expenditure by households. A range of associated with consumption,


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Transport
Food & non-aloholic drinks
Recreation & culture
Restaurants & hotels
Housing, fuel & pow er
miscellaneous goods & services and the subsequent impact on the unlikely without strong policy
consumption mix by the Mosaic intervention.
Household goods & services Communication Clothing & footw ear
Alocholic drink & tobacco Education and Health

household types was estimated for


the North East and its constituent The study pointed towards large
districts. differences in emissions across
Greenhouse gas emissions per pound spent over time for selected food product
groups 1992 - 2026
households and lifestyles and
12
M eat and meat products excl. poultry (domestic)
M eat and meat products excl. poultry (imports)
Using the SEI data and forecasts clearly related these to incomes and
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Dairy products (domestic)
Dairy products (imports)
Fruit and vegetables (Domestic)
for the carbon intensity per pound expenditure. By bringing economic
spent on each consumption product, and environmental information
Fruit and vegetables (imports)
Bread and biscuits; pastry goods and cakes (domestic)
8 Bread and biscuits; pastry goods and cakes (imports)

the team was able to calculate the together, regional policy can recognise
kg GHG per £ spent

full impact of changed consumption differences between neighbourhoods,


6

4
patterns in the region on the and take into account household types
2
environment, brought about by faster and unique consumption patterns.
0 economic growth.The research was
designed to overcome territorial Experian was able to provide robust
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boundaries and properly accounted underlying economic analysis which is


for the impact of products that were disaggregated by different household
produced in other countries and types, helping policymakers in the
regions, but consumed within the North East to formulate more effective
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North East. At the same time, the policy that targets specific groups and
GHG (tonnes per hh)

analysis excluded the impacts of allowing the ‘worst offenders’ to be


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goods and services produced in the targeted first.
North East but exported outside the
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5
region. 2. Relative decoupling means that emissions grow more
0
slowly than the economy.
Absolute decoupling means that the economy grows but
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1. Mosaic UK is a geo-demographic classification that


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emissions fall.
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paints a rich pictur e of UK consumers in terms of socio-


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demographics, lifestyles and behaviour, and provides a


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Mosaic Group
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Transport Recreation & culture Housing, fuel & pow er detailed understanding of UK society.
Food & non-aloholic drinks Restaurants & hotels miscellaneous goods & services
Household goods & services Communication Clothing & footw ear
Alocholic drink & tobacco Education and Health

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