Transitioning to renewables could reduce shock impact – research

Authors say Brazilian economy may serve as a model in the clean energy transition

Wind turbines and coal-fired power station

The transition to renewable energy sources could help stabilise energy prices and output by dampening the effect of shocks, say researchers from the Central Bank of Brazil.

“Transitioning to renewable energy may reduce sensitivity to different types of energy supply and demand shocks,” authors Alexandre Kornelius and Jose Angelo Divino write. “Energy supply shocks are the major driving force of energy prices.”

The researchers also find that price increases do little to curb energy usage. They say

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