BLOOMBERG • August 19, 2021
The global transition to a carbon-neutral economy will cause economic disruption reminiscent of the energy crisis of the 1970s, according to a paper by the Peterson Institute for International Economics. Even if efforts to drastically cut emissions are digestible in the long term, the immediate impact from the difficult adjustments needed may be similar in scope to the period of subdued growth and rampant inflation that stemmed from that oil-price shock.