Falling oil and gas prices delay switch to renewable energy sources
Global oil prices are at an 11 year low, while both gas and coal prices have also been declining. Although this means that unexplored fossil fuels may remain in the ground because their excavation is not as profitable as it used to be, lower prices for oil, gas, and coal, also imply higher demand for consumption, both for commercial and industrial use. This, in turn, is harmful for efforts to curb climate change and restrict it to a level 2 degrees Celsius or below.
Faculty associate Klaus Hubacek's research shows that this price incentive for fossil fuel consumption could delay the switch to renewable energy sources, and confirms that the share of renewables in U.S. energy would have been higher if gas prices weren’t as cheap as they are. Due to this delay, emissions are expected to higher in the long run, thus conflicting with goals for climate change.