In a new study published on 23 October, the pro-European think-tank Bruegel demonstrates that economic recessions, such as those caused by pandemics or financial crises, result in permanent increases in energy efficiency and a corresponding drop in the energy intensity of production, “with a disproportionate impact on dirty energy”.
The aim of this study, conducted by Pragyan Deb, Davide Furceri, Jonathan D. Ostry and Nour Tawk, was to analyse empirically whether economic slowdowns...