'PES' in International Economics: IB Economics

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Scooped by Graham Watson

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From www.theguardian.com - February 3, 2023 6:57 AM

Graham Watson's insight:

There are obvious geopolitical implications of this story see it here - however, from a purely economic point of view, the implications of the story for PES are fascinating.

You should be aware of the inelasticity of demand and supply for natural gas, but the fact that gas consumers were able to substitute away from Russian natural gas so quickly is remarkable. That said, it should also be noted that markets work - energy consumption has noticeably fallen and the incentives to develop renewable alternatives are such that the unintended consequences of the Ukraine war might be a more adaptable energy market and greater long-term energy security.

sheronlucia's curator insight, February 7, 2023 4:31 AM

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