New research conducted by Trinity College Dublin has unveiled a compelling link between the use of renewable energy sources and the speed of economic recovery following systemic shocks. This discovery carries significant implications for global energy policies.
To arrive at their conclusions, the researchers meticulously examined data from 133 systemic economic crises spanning 98 countries over a four-decade period. Their analysis revealed that countries dependent on a diverse range of energy sources tend to experience lengthier recovery periods. However, the most decisive factor influencing economic rebound was the degree to which a nation relied on renewable energy.
“Our findings highlight the importance of the intrinsic link between natural resources provided by ecosystems and the stability of the economies that rely on them,” the researchers explain. “Ultimately, they point to the need for a fundamental reassessment of both national and international energy policy, not only for the sake of our environment, but also to enhance the stability—and sustainability—of our economies.”
Resilient economies
What lends added weight to these findings is the wide diversity of societies and economies represented in the data, as the extent of reliance on renewable energy consistently emerged as a key determinant of variability in economic recovery times.
“Although the mechanisms underpinning our results are unclear, one likely explanation is that renewables accelerate recovery because they are locally-produced and not subject to the high volatility of availability and prices connected with fossil fuels,” the authors continue.
The analysis encompassed various countries, including Ireland, which confronted the 2008 economic crash. Presently, Ireland has set ambitious targets for integrating renewable energy into its energy supply chain, with a goal of generating 80% of its electricity from renewable sources by 2030.
Consequently, this research provides robust support for intensifying national efforts to transition towards a greater dependence on renewable energy.
“This work provides another compelling reason to double down on our efforts to focus on renewable energy sources such as on- and off-shore wind,” the authors conclude. “Doing so would add a third ‘win’ to what was already a win-win scenario, as a greater reliance on renewable energy will reduce our carbon emissions, help protect our precious biodiversity and now, seemingly, also provide a more resilient economy.”
