Social and Economic Effects
The macroeconomic implications of a supply shock-induced energy crisis are large, because energy is the resource used to exploit all other resources. When energy markets fail, an energy shortage develops. Electricity consumers may experience intentionally engineered rolling blackouts during periods of insufficient supply or unexpected power outages, regardless of the cause.
Industrialized nations are dependent on oil, and efforts to restrict the supply of oil would have an adverse effect on the economies of oil producers. For the consumer, the price of natural gas, gasoline (petrol) and diesel for cars and other vehicles rises. An early response from stakeholders is the call for reports, investigations and commissions into the price of fuels. There are also movements towards the development of more sustainable urban infrastructure.
In the market, new technology and energy efficiency measures become desirable for consumers seeking to decrease transport costs.High Oil Prices Boost Energy Efficiency. January 30, 2008 Planet Ark. Examples include:
- In 1980 Briggs & Stratton developed the first gasoline hybrid electric automobile; also are appearing plug-in hybrids.
- the growth of advanced biofuels.
- innovations like the Dahon, a folding bicycle
- modernized and electrifying passenger transport
- Railway electrification systems and new engines such as the Ganz-Mavag locomotive
- variable compression ratio for vehicles
Other responses include the development of unconventional oil sources such as synthetic fuel from places like the Athabasca Oil Sands, more renewable energy commercialization and use of alternative propulsion. There may be a Relocation trend towards local foods and possibly microgeneration, solar thermal collectors and other green energy sources.
Tourism trends and gas-guzzler ownership varies with fuel costs. Energy shortages can influence public opinion on subjects from nuclear power plants to electric blankets. Building construction techniques—improved insulation, reflective roofs, thermally efficient windows, etc.—change to reduce heating costs.
See also: Green building and Zero-energy buildingRead more about this topic: Energy Crises
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