Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/294881 
Year of Publication: 
2023
Series/Report no.: 
Bruegel Working Paper No. 18/2023
Publisher: 
Bruegel, Brussels
Abstract: 
How do severe recessions, such as those brought about by the Global Financial Crisis or the COVID-19 pandemic, affect the composition of energy generation between green and dirty sources? Does creative destruction during recessions result in a sustained greening of the energy mix? The empirical analysis presented in this paper highlights that recessions and crises result in permanent, albeit small, increases in energy efficiency and in the share of renewables in total electricity. These effects are larger, however, when complemented with strong environmental policies - both market-based measures such as taxes on pollutants, trading schemes and feed-in-tariffs, and non-market measures such as emission and fuel standards and R&D investment and subsidies - that incentivise and hasten the transition towards renewable sources of energy.
Subjects: 
crises
recessions
energy mix
renewables
JEL: 
E32
E6
G01
O13
Q4
Q54
Q56
Document Type: 
Working Paper
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