GettyReliance on fossil fuels has left countries more exposed to the economic shock of global crises like coronavirus, and governments should look to renewable energy to help reduce such risks, a leading financial economist has said. “I think we’re entering a whole new phase of volatility,” Donovan said. While campaigners and climate scientists promote renewable energy on environmental grounds, Donovan stressed that sustainable energy sources such as wind, solar and tidal power ought to be more attractive to investors and policymakers than fossil fuels on a purely economic basis. “The relative stability of renewable energy that’s fully contracted, that already has power purchase agreements ... should make it immune from deterioration.”This analysis rests in part on inherent characteristics of renewable energy: fuelled by wind, water or sunlight and captured by sustainable infrastructure, renewables are viewed as being more resistant to monopolization by cartels and outright manipulation. “It’s not that by having more wind turbines and solar panels we could avoid coronavirus,” Donovan said.

Source: Forbes March 13, 2020 16:18 UTC