On the Economic Impact of the Shift to Sustainable Energy Systems
It’s been recently reported that global energy use is on the rise at a rate exceeding previous projections by a fairly wide margin. While this would typically be viewed as an encouraging development in terms of the world economy, the fact that this increasing energy usage also contributes to the acceleration of climate change estimates could represent a devastating economic development that has an impact on the entirety of the world’s population.
This is why it becomes so critical to turn to economists like Andrew Charlton, who would be very likely to understand the full ramifications of this increasingly problematic issue. It is surely the case that if the development and implementation of technologies capable of providing widespread access to sustainable sources of energy is not encouraged by greater capital investment, the devastating consequences of unchecked climate change will be far more likely to ravage economies all over the globe.
Of course, there is a flip side to this in which increasing investor confidence in the still-developing sustainable energy industry could provide the massive influx of capital needed to make sweeping and rapid change entirely possible. The problem among investors has thus far been related to the desire to essentially hedge investments across a variety of sustainable technologies and alternative energy resources until the industry’s direction becomes much clearer.
It is for this reason that innovation within the sustainable energy industry is such a necessity. Investors already recognize that a dramatic shift is taking place in which the right energy investment could yield a tremendous return. For the necessary influx of investment capital to flow into the market, however, it must be entirely evident that a specific development or innovation is poised occupy a significant market share. It is increasingly clear that the fate of the climate and the world economy is very much at stake.