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.