Renewable Energy and the Economic Crisis
The financial and housing crises have hit the broader economy hard, with automobile and retail sales weakening substantially in the past two months. How will the renewable energy sector be affected? Two main concerns were highlighted in
a New York Times article on October 20:
"The struggles of financial institutions are raising fears that
investment capital for big renewable energy projects is likely to get
tighter. Advocates are concerned that if the prices for oil and
gas keep falling, the incentive for utilities and consumers to buy
expensive renewable energy will shrink. That is what happened in the
1980s when a decade of advances for alternative energy collapsed amid
falling prices for conventional fuels."
On the other hand, unlike in the 1980s, concerns about climate change may lead to legislation that raises the price of conventional, greenhouse gas emitting energy sources, increasing the competitiveness of alternative energies.
Which trends do you see as more important, and where do you see renewable energy investment in two to three years?
Posted 28 November 2008 by Brendan Moore
Tagged under: Alternative/Renewable, Policy
Post a new comment