publication . Preprint . 2005

Exploiting the Oil-GDP Effect to Support Renewables Deployment

Shimon Awerbuch; Raphael Sauter;
Open Access
  • Published: 13 Jan 2005
Abstract
The empirical evidence from a growing body of academic literature clearly suggests that oil price increases and volatility dampen macroeconomic growth by raising inflation and unemployment and by depressing the value of financial and other assets. Surprisingly, this issue seems to have received little attention from energy policy makers. In percentage terms, the Oil-GDP effect is relatively small, producing losses in the order of 0.5% of GDP for a 10% oil price increase. In absolute terms however, even a 10% oil price rise. and oil has risen at least 50% in the last year alone. produces GDP losses that, could they have been averted, would significantly offset th...
Subjects
free text keywords: Oil price shocks, oil price volatility, Oil-GDP effects, renewable energy, RES-E targets, financial beta risk, funding renewables, jel:Q4, jel:E2
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