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Contrary to concerns that a shift to renewable energy will harm the economy, renewables have actually been boosting prosperity for at least a decade—even with the deck stacked in favour of fossil fuels, writes Deborah de Lange, associate professor of global management studies at Toronto Metropolitan University, in a post for The Conversation.
Discussions vary across interest groups. Do we need to outright replace the fossil fuel industry with the renewable energy industry as soon as possible? Should we slowly phase out fossil fuels while making clean renewable replacements? Or, should we continue with a powerful fossil fuel industry while separately growing a renewable industry in parallel?
How these different choices could affect our economies seems unclear, and it is this lack of clarity that opens up the field for frustrating discussions. Just two weeks before the recent COP28 climate summit in the United Arab Emirates, the conference president shockingly claimed there is “no science” behind any decision to phase out fossil fuels from our energy systems—a statement which he later claimed was “misinterpreted.”
My research indicates that renewable energy innovation contributes to higher GDP. Contrary to some commonly held beliefs, a clean transition is, and has been for at least a decade, good for the economy—even in earlier stages of its development.
My findings also suggest that government and industry support for the fossil fuel industry negatively affects a country’s renewable energy innovation. The two industries are not compatible.
When the fossil fuel industry invests in itself, it also appears to improve GDP, which creates confusion about the best way to ensure economic prosperity during the transition to clean energy.
But this investment, often made through lobbying, only prolongs the existence of the fossil fuel industry by keeping renewable energy competition out. This creates a false dichotomy between reducing emissions and improving GDP when, in fact, clean innovation can achieve both simultaneously.
My research indicates that clean innovation builds a stronger economy and reduces emissions. If we want to reinforce that dual progress, rather than accepting trade-offs, we have to stop supporting the fossil fuel industry which aims to slow it down.
Read the full post at The Energy Mix.
