Macroeconomics: UK economy, IB Economics

Richard Partington makes the case for green energy, arguing that geopolitical events have revealed the fragility of fossil fuel-powered energy systems, and that the current government's unwillingness to fully commit to greening the economy, and the energy sector represents a missed opportunity. Clearly, this sort of view will be popular. 

But does it make it good economics? Or is the real solution to  ongoing energy problems more nuanced - and what role does nuclear power play in this. Either way, the low price elasticity of supply for energy means that we've probably missed the boat to some extent. 

Another energy company head has spoken out about the ongoing energy issues, and argued that the government should have invested more into renewable energy. However, the government points out that it has increased the amount of renewable energy has increased by 500% since 2010. 

Fantastic article in the Guardian, with Larry Elliott seeing the coronavirus as an opportunity to reshape Britain, with increased stress on devolution, greening the economy and a reconstructing social safety net that is fit-for-purpose. It's powerful stuff.

Yesterday's National Infrastructure Commission, chaired by Sir John Armitt, has a number of interesting aspects. The headline captures the concerns about the current model for running Britain's railways, but of at least equal significance are the conclusions drawn about the future of electricity generation.

The report is explicit in suggesting that the future of electricity should be renewable, rather than nuclear - largely as a result of falling renewable costs - and it will be interesting to see if successive governments heed this advice. Remember, the National Infrastructure Commission is non-partisan.

Another look at potential solutions to the energy crisis with the suggestion that the industry might be on the point of separating energy prices depending upon the source of generation, with lower prices for renewable and other non-fossil fuel sources, whose supply contracts are currently pegged to gas prices. 

Again, micro- or macroeconomics? To my mind, it's the latter, because although it's renewable energy, it's more of an infrastructure project designed to 'green' the UK's electricity network.

Inward investment into the UK - in the renewable sector - with a couple of Japanese firms choosing to invest £1bn in Innogy's Triton Knoll project. Lots of straightforward entry points, not least the multiplier effect.