What effects will the virus have on climate change?
The stock markets are crashing. Coronavirus fears, together with OPEC discussions have driven the oil price down.
In China, carbon emissions have dropped by 25%.
Corona & the oil price
Cheap oil has previously meant that people use more oil, and increased travel activity. Traditionally, cheap gas has made the electic car market difficult. Mondays drop in oil price made Teslas stock crash.
Nowadays, battery prices have fallen such that electric cars have become more competitive with conventional cars, even ignoring fuel costs. The upfront cost of the car is usually what holds back purchases of electric car, but it is likey that the battery prices will drop even further in the future, making it more attractive.
Will we change our habits?
The virus has also led to people staying at home instead of traveling. Global air traffic decreased by 4.3% in February. The question is if the virus will completely change peoples travel and transportation habits as people are forced to become comfortable with conference calls and remote work. The virus has actually forced us into understanding that we are, as a global community, able to make large, life-altering changes when necessary.
What about political efforts & investments?
Further, a sustained drop in oil prices may push long-term investnemts into renewable energy technology. On the other hand, the virus could drain money and political will from climate efforts.
What do you think?
Analysts say its too early to know if the virus will push global CO2 emissions down enough to reach the goals of the Paris agreement.
What do you think? Will there be structural changes as a result of the virus? Will the virus inspire long-term changes in the ways we travel?
Sources:
NY Times Climate Change Newsletter