The implications of accelerated renewable electricity use

Accelerated adoption of renewable electricity will cause demand and prices of coal and natural gas to fall over the long run. While we think the global economy will handle this transition well, there will be some winners and losers depending on which commodities countries import or export.
Justin Chaloner Senior Economist
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Long Run Returns Monitor

Long Run Returns Monitor (Nov.)

Our monthly Long Run Returns Monitor provides our updated long-term projected returns for major asset classes, as well as a summary of the macroeconomic forecasts which underpin them. All projections in this publication are as of 23rd November 2021. A more detailed explanation of our views can be found in our annual Long Run Economic Outlook and Long Run Asset Allocation Outlook.

25 November 2021

Long Run Update

COP26 a small step forward but much left to do

COP26 has progressed efforts to fight climate change, but there is still a significant gap between pledges and actual policies. Unless action ramps up this decade, countries may face a choice between accepting the costs of greater global warming or a rapid, and potentially disorderly, transition to a greener economy.

16 November 2021

Long Run Update

COP26 unlikely to alter economic outlook

The UN’s annual climate change conference, COP26, has the potential to be an important milestone but it is just one step along the path required to limit global warming. Accordingly, it will not on its own stop climate change from clouding the long-run economic outlook for many emerging markets in particular.

2 November 2021

More from Justin Chaloner

Long Run Update

Are we on the way to a bigger state?

While it may take years or decades before the evidence is clear, there are tentative signs that the pandemic has accelerated a shift towards a bigger role for the state in advanced economies.

24 September 2021

CE Spotlight

Will a transition to net-zero cause higher inflation?

A gradual transition to ‘net-zero’ emissions would have a modest impact on inflation but could still make life more difficult for central banks if it happened at a time when other pressures were building.

22 September 2021

Long Run Update

Implications of more extreme weather events

Climate change is already making extreme weather events more frequent and more intense, which will worsen as the planet warms further. This is most likely to cause short-term disruptions to economic growth in some EMs. What’s more, it could result in more volatile inflation in all economies if internationally traded commodities are affected more frequently.

6 September 2021
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