https://www.sciencedirect.com/science/article/abs/pii/S0140988323006187
Energy Economics – Available online 21 October 2023, 107120
Creative destruction during crises: An opportunity for a cleaner energy mix
Abstract: Lockdowns resulting from the COVID-19 pandemic drastically altered energy consumption patterns. Lockdowns implemented within a few months of the pandemic meant that global energy demand, especially for coal, oil, and gas, declined steeply (McGrath, 2020). According to the International Energy Agency (IEA, 2020a), energy demand dropped by 25% on average per week in nations with a full lockdown, and 18% in those in partial lockdown. This decline was mostly driven by the reduced demand for electricity in the commercial and industrial sectors, while household energy demand rose by 40%, as millions of citizens were confined to their residences (Broom, 2020).
In contrast to the pattern for overall energy demand, generation from renewable sources was resilient to the COVID-19 crisis. Global use of renewable energy in all sectors increased by 1.5% and, as a result, the share of renewables in electricity demand increased in many regions (International Energy Agency, 2020b), including parts of Europe and the United States (Fig. 1). While this reflects, in part, the trend increase in renewables (Fig. 2), with new wind and solar projects already in the pipeline coming online in 2020, it may also reflect the “creative disruption” associated with the crisis—that is, the opportunity from the crisis to abandon inefficient non-renewable sources of energy production and switch to renewable sources.
The aim of this paper is to explore the possibility that crises provide a window of opportunity for greener energy and increase the share of renewable energy.
Conclusion: Excerpt: The empirical analysis confirms that growth slowdowns, including those engendered by pandemics and financial crises, result in a permanent increase in energy efficiency and a corresponding decline in the energy intensity of output, with a disproportionate impact on dirty energy.
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https://www.sciencedirect.com/science/article/abs/pii/S0140988323006187
Energy Economics – Available online 21 October 2023, 107120
Excerpt: “The aim of this paper is to explore the possibility that crises provide a window of opportunity for greener energy and increase the share of renewable energy.” …
“The empirical analysis confirms that growth slowdowns, including those engendered by pandemics and financial crises, result in a permanent increase in energy efficiency and a corresponding decline in the energy intensity of output, with a disproportionate impact on dirty energy.”
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