Switching to renewable energy could save trillions – study
Switching from fossil fuels to renewable energy could save the world as much as $12tn (£10.2tn) by 2050, an Oxford University study says.
The report said it was wrong and pessimistic to claim that moving quickly towards cleaner energy sources was expensive.
Gas prices have soared on mounting concerns over energy supplies.
But the researchers say that going green now makes economic sense because of the falling cost of renewables.
“Even if you’re a climate denier, you should be on board with what we’re advocating,” Prof Doyne Farmer from the Institute for New Economic Thinking at the Oxford Martin School told BBC News.
“Our central conclusion is that we should go full speed ahead with the green energy transition because it’s going to save us money,” he said.
The report’s findings are based on looking at historic price data for renewables and fossil fuels and then modelling how they’re likely to change in the future.
The data for fossil fuels goes from 2020 back more than 100 years and shows that after accounting for inflation, and market volatility, the price hasn’t changed much.
Renewables have only been around for a few decades, so there’s less data. But in that time continual improvements in technology have meant the cost of solar and wind power have fallen rapidly, at a rate approaching 10% a year.
The report’s expectation that the price of renewables will continue to fall is based on “probabilistic” modelling, using data on how massive investment and economies of scale have made other similar technologies cheaper.