Report
Patrick Artus

What will the savings-investment equilibrium be if the world invests much more in renewable energies?

To keep the required pace of energy transition, the world has to invest markedly more in renewable energies and in the insulation of existing housing. But what will be the effect of this additional investment on the global equilibrium between savings and investment? Part of the return to equilibrium will be obtained by reducing investment in fossil energies, but it cannot apply to all this investment ; But part will have to be financed by an increase in private savings or by a decline in corporate or housing investment, or by a fall in the fiscal deficits earmarked for uses other than investment in renewable energies. The increase in investment in renewable energies will therefore have to be combined with: Either a rise in real interest rates; Or a more restrictive fiscal policy apart from this investment.
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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