The negative impact that spikes in global oil, gas and coal prices have on the UK could be reduced by over 50% in 2050 as a result of climate change policies, that’s according to Edward Davey, Secretary of State for Energy and Climate Change.
The analysis, produced by Oxford Economics and commissioned by Government, shows how the UK’s sensitivity to oil and gas price shocks could be reduced by using low-carbon forms of electricity generation including renewables, new nuclear and through increasing energy efficiency.
Davey said: “Every step the UK takes towards building a low-carbon economy reduces our dependency on fossil fuels, and on volatile global energy prices. Only last year, the impact of the Arab Spring on wholesale gas prices, pushed up UK household bills by 20%.
“The more we can shift to alternative fuels, and use energy efficiently, the more we can ensure that our economy does not become hostage to far-flung events and to the volatility of market forces.
“Of course, there are costs to building more low-carbon plant, but the gains are so much greater, and crucially they are lasting. This is about building a more resilient economy and providing more stable energy prices for the generations that follow us.”
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