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<p>Assuming the question refers to the statement that “Government policies stand to reduce the UK's sensitivity to fossil fuel price spikes by approximately 30% by 2020, and by around 60% by 2050”, the evidence base is the DECC-commissioned 2011 Oxford Economics report, ‘Fuel Price Shocks and a Low Carbon Economy’. This can be accessed at the following web address:</p><p>http://www.decc.gov.uk/assets/decc/11/tackling-climate-change/international-climate-change/5276-fossil-fuel-price-shocks-and-a-low-carbon-economy-.pdf</p><p>The key findings of this study are that the impact of a 50% increase in oil and gas prices (resulting from a supply shock) reduces UK GDP by around 1% in 2010; and, under the low carbon scenario of reduced energy demand, by around 0.7% in 2020 and less than 0.4% 2050. This indicates the impact on UK output from oil and gas price shocks could be reduced by around 30% in 2020 and 60% in 2050, compared to a 2010 baseline.</p> |