Countries powered by renewable energy recover faster from economic crises
New research suggests that nations that have a significant supply of renewable energy tend to bounce back the quickest from economic downturns.
The research, which was released in the journal Ecological Economics, analyzed 133 financial disasters that occurred in 98 nations during a 40-year time frame starting from 1970 up until 2011.
The scholars uncovered that the most accurate indicator of financial revival relied on the extent of renewable energy utilized by a nation.
Meanwhile, nations that depended on a wider variety of energy sources required more time to bounce back.
The scientists utilized information from the International Monetary Fund to investigate the financial predicaments.
The scientists mentioned in their report that their findings are only based on correlation, and they cannot clarify the reason behind the association between the employment of sustainable energy and the improvement of the economy.
The reasons for our findings are not fully understood, but it is probable that renewables aid in the process of restoration because they are produced within the region and are not vulnerable to the inconsistent availability and costs linked to non-renewable resources. This statement was given by Professor Robert Costanza, a scientist specializing in ecological economics at University College London, UK who collaborated on this research.
Receive the latest news on scientific stories straight to your email inbox.
Discover more: Sustainable sources of power, paired with storage, are now the most cost-effective form of energy in Australia.
In addition, the scientists indicate that several nations reacted to the worldwide financial meltdown of 2008 by putting their money into fossil fuels. This event took place towards the conclusion of their data gathering period.
This may have weakened the financial strength of these nations and extended the duration needed for their comeback.
The leader of the School of Natural Sciences at Trinity College Dublin, Professor Ian Donohue, emphasized the significant connection between the natural resources given by ecosystems and the stability of economies that depend on them. This was the key takeaway from our research.
In the end, they indicate that there is a requirement to completely rethink both local and global energy strategies. This is not just for the welfare of our planet, but also to advance the durability and stability of our financial systems.
Ellen Phiddian works as a reporter in the science field for Cosmos. She has acquired a degree in chemistry and science communication with honours, and a master's degree in science communication from the Australian National University.
Explore Science Facts, Not Fiction
It's currently crucial to clarify the truth, value knowledge rooted in evidence, and present new discoveries in science, technology and engineering. Cosmos, a publication by The Royal Institution of Australia, strives to involve people with the realm of science through donations. Any financial assistance, no matter the amount, will allow us to offer trusted scientific knowledge at a vital moment in history. If you'd like to support us, please consider donating or subscribing today.
