Related Articles
Higher carbon pricing for net zero by 2050 could drive stagflation
Forward article link
Share PDF with colleagues

Transition economic impact could echo 1970s oil shock - PIIE

Rise in carbon prices required by 2030 could serve as negative supply shock to global economy of similar magnitude to 1973-74 quadrupling of oil prices, thinktank says

The global energy transition required to avoid cataclysmic climate change will now need to be abrupt rather than gradual following decades of policy procrastination. This could potentially cause a period of slow economic growth combined with high price inflation, or "stagflation", akin to the one following the 1973-74 oil price shock, according to a paper by Washington-based thinktank Peterson Institute for International Economics (PIIE). “Reasonable optimism about the long-run effects of the transition to a carbon-neutral economy is no reason to overlook transition costs,” Jean Pisani-Ferry, an economist at PIIE says in the paper. “These costs, while bearable, are likely to be significant.



{{ error }}
{{ comment.comment.Name }} • {{ comment.timeAgo }}
{{ comment.comment.Text }}
Also in this section
Turbine manufacturers post major losses
26 January 2022
GE and Siemens Gamesa Renewable Energy have announced multimillion-dollar losses over 2021 and the past quarter, while Vestas posts cautious 2022 guidance
New EIB-backed energy efficiency fund to tackle ‘huge underinvestment’
26 January 2022
Solas Sustainable Energy Fund to support energy efficiency projects mainly in Germany, Spain and Ireland and is aimed at small-to-mid-size insurers and pension funds
Crediting emissions saved in plugging oil and gas wells
26 January 2022
Avoided emissions could be credited as carbon offsets and sold on exchanges
Sign Up For Our Newsletter
Project Data
PE Store
Social Links
Social Feeds
Featured Video