Economics Explained Is the survival of humanity economically viable?
Aug 27, 2025
Discover how energy fuels economies and why global warming poses dire economic risks. The discussion dives into the shale boom's massive financial impact and Iceland's geothermal benefits. With energy prices soaring, can we achieve both economic growth and climate goals? Explore the need for global cooperation to address climate costs and the balancing act required for renewable energy and nuclear power. The conversation also highlights the political challenges of nuclear energy and the potential of carbon pricing in promoting decarbonization.
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Energy's Triple Constraint
- Economies require energy that is cheap, secure, and increasingly green to prosper.
- Balancing these three objectives is extremely difficult and causes real economic trade-offs.
Shale Boom And Iceland's Edge
- The US shale boom cut energy prices and delivered $74 billion a year in consumer value and 725,000 new jobs.
- Iceland used geothermal and hydro to become a top per-capita electricity producer and specialise in energy-intensive industries.
Germany's Energy Shock
- Russia's 2022 invasion forced Germany to pivot away from Russian oil and gas, raising energy costs by 35% and hurting growth.
- Germany saw higher household costs, reduced investment, inflationary pressures, and its first post-1991 trade deficit.