Study says, switching to renewable energy can save trillions

An Oxford University study says that switching to renewable energy from fossil fuel could save the world approximately $12tn by 2050.

The report of the study said it was pessimistic and wrong to claim that moving quickly towards cleaner energy sources was expensive. The soaring price of gas is a matter of concern over energy supplies. However, the researchers at Oxford University say that going green at present time will make economic sense due to the falling cost of renewables.

From the Institute for New Economic Thinking at the Oxford Martin School, Prof Doyne Farmer said that the central conclusion of the study is that the world should go ahead with the green energy transition because it's going to save money. The findings of the report are based on historic price data for fossil fuel and renewables and then modeling how they're likely to change in the future.

The data on fossil fuels goes back more than 100 years from 2020. Then, market volatility and accounting for inflation shows that the price of fossil fuels hasn't changed much. The concept of renewables has been around only for a few decades so there are less data. But the time of continual improvements in technology meant the rapid fallen cost of the wind and solar power at a rate approaching 10% a year.