Report
Patrick Artus

The parallel between a war and the energy transition: What economic policies during the transition?

The energy transition has economic characteristics similar to those observed after a war: Capital is destroyed (in energy transition, in the production and use of fossil fuels); A very high level of investment (private and public) is needed to create new capital (production of renewable energies, decarbonisation of industry, thermal insulation of buildings); The initial public debt level is already high. What happened after wars? Interest rates were significantly lower than the growth rate, to reduce debt ratios and boost investment; The tax burden was high to finance the high need for public investment; The sharing of production was more favourable to investment and more unfavourable to consumption. We will therefore probably see the same developments during the energy transition.
Provider
Natixis
Natixis

Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.

 

Analysts
Patrick Artus

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