According to a new report from the International Energy Agency (IEA), global investment in energy is expected to reach approximately $2.8 trillion in 2023, with over $1.7 trillion directed towards clean energy technologies such as electric vehicles, renewables, and storage.
Interestingly, solar investments are predicted to attract over $1 billion a day in 2023, marking a significant shift in the energy sector. This is set to be the first time that investment in solar will surpass the amount of investment going into oil production.
However, fossil fuels are still projected to attract slightly over $1 trillion of investment this year, highlighting the ongoing reliance on these energy sources despite the growing focus on sustainability.
This case study provides a real-world example of the changing landscape of energy investment and the increasing importance of clean energy technologies in the global economy.
THINK LIKE AN ECONOMIST!
Q1. What is meant by the term sustainability?
Q2. Explain why investing in clean energy has positive production externalities.
Q3. Analyse the impact of investing in clean energy on long-term economic growth.
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