Last year—when energy prices accounted for one-third of total inflation—the Inflation Reduction Act and CHIPS and Science Act took historic steps to combat the climate crisis and invest in more price-stable renewable energy.
But expanding renewables will not eliminate climate risks or energy price volatility on its own—we also have to fully divest from fossil fuels, the Roosevelt Institute’s Kristina Karlsson and The New School’s Lauren Melodia outline in a new fact sheet.
“Effectively managing energy price inflation while retaining a fossil fuel–based economy is nearly impossible, especially as energy commodity markets are getting more, not less, volatile,” they write in a follow-up to their May 2022 brief.
While the recent reduction in inflation was a result of declining fossil fuel prices, “as long as our economy is reliant on fossil fuels, those price declines are not stable or permanent,” the authors write. “Our macroeconomy is vulnerable to continued price volatility—both the highs and lows.”
Read more in the new fact sheet.
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