Fossil resource trade balances: Emerging trends for the UK

Abstract

The aim of this paper is to examine the extent to which the UK can be classified as a net importer of fossil resources and a creator of pollution havens abroad between 1968 and 2000. Using input–output techniques and a derived Resource Flow Classification System, both the physical trade balance (PTB) and pollution trade balance (UTB) associated with fossil resource use are computed. The PTB shows that between 1968 and the early 1980's the UK is presented as a net importer of direct fossil resource flows. Between 1984 and 2000, the UK is identified as a net exporter of direct fossil resources. These trends are primarily explained by the UK's discovery and commercial production of North Sea oil and gas fields in the late 1970s. On the other hand, the UTB shows that over the whole period the indirect used flows attributable to the UK's exports are higher than those attributable to its imports. These findings suggest that the UK did not create pollution havens abroad from the use of fossil resources between 1968 and 2000. However, it is noticeable in both cases that from 1995 the UK's position as a net exporter has been decreasing considerably. Maturing North Sea oil and gas fields set against increasing demands for fossil fuels and imported goods is signalling a return to the UK's pre-1984 dependence on direct imported fossil resources and the possible creation of pollution havens abroad. Knowledge of these trends contributes to the evidence base for the UK's changing import and export structure and the potential environmental repercussions at home and abroad.