– For Exernomics. Robert Ayres, Paris. 25 October, 2014
The future of energy will be driven by a combination of price and availability, as it always has. But in an uncertain world one thing is very sure, and that is that this combination is already in rapid transformation, so we are looking at a very different future indeed.
In my recent book (“The Bubble Economy”) , I have argued that the rising price of oil, in particular (because of its unique role as a fuel for mobile applications) together with the declining price of “renewables” creates an opportunity for long-term investors. It is estimated that $2 trillion/year must be invested in renewable energy to meet future energy demand without increasing carbon dioxide emissions. Surprisingly, perhaps, current trends suggest that – contrary to widespread assumptions – such investments can be very profitable.
New York City skyline during power outage
– – – > For the full text, please click here – http://exernomics.wordpress.com/2014/10/24/the-future-of-energy/
# # #
Forthcoming editorials by Robert Ayres to appear in this Exernomics series:
To appear here next week:
* Part II. The Future Price of Oil
* Part III. The Future Price of Renewables
# # #
About the author:
Robert Ayres’s career has focused on the application of physical ideas, especially the laws of thermodynamics, to economics; a long-standing pioneering interest in material flows and transformations (Industrial Ecology or Industrial Metabolism); and most recently to challenging held ideas on the economic theory of growth.