Creative destruction during crises: An opportunity for a cleaner energy mix

Pragyan Deb, Davide Furceri, Jonathan Ostry and Nour Tawk

Energy Economics, 2023, vol. 128, issue C

Abstract: Lockdowns resulting from the COVID-19 pandemic reduced overall energy demand but electricity generation from renewable sources was more resilient. While this partly reflects the trend increase in renewables, the empirical analysis presented in this paper highlights that recessions and crises 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.

Keywords: COVID-19 lockdowns; Recession; Energy use; Energy mix; Renewables (search for similar items in EconPapers)
JEL-codes: E32 E6 G01 O13 Q4 Q54 Q56 (search for similar items in EconPapers)
Date: 2023
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Working Paper: Creative Destruction During Crises - An Opportunity for a Cleaner Energy Mix (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:128:y:2023:i:c:s0140988323006187

DOI: 10.1016/j.eneco.2023.107120

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