Creative Destruction During Crises - An Opportunity for a Cleaner Energy Mix
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Summary:
Lockdowns resulting from the COVID-19 pandemic have reduced overall energy demand but electricity generation from renewable sources has been resilient. While this partly reflects the trend increase in renewables, the empirical analysis presented in this paper highlights that recessions result in a permanent, albeit small, increase in energy efficiency and in the share of renewables in total electricity. These effects are stronger in the case of advanced economies and when complemented with environment and energy policies—both market-based measures such as taxes on pollutants, trading schemes and feed-in-tariffs, as well as non-market measures such as emission and fuel standards and R&D investment and subsidies—to incentivize and hasten the transition towards renewable sources of energy.
Series:
Working Paper No. 2021/284
Subject:
Commodities Economic growth Economic recession Electricity Environment Environmental policy Non-renewable resources Renewable energy
Frequency:
regular
English
Publication Date:
December 3, 2021
ISBN/ISSN:
9781616357115/1018-5941
Stock No:
WPIEA2021284
Pages:
49
Please address any questions about this title to publications@imf.org