The price of oil directly affects the potential for green technology to gain widespread acceptance. One of the challenges facing the green technology industry is that energy produced form fossil fuels (such as oil) is cheaper than energy produced from renewable energy for consumers- or at least it seems so. In reality, the price for energy produced by oil is kept low by government subsidies (estimated at between $78-$158 billion per year). Therefore, investment in green technology is stymied. However, if these subsidies were eliminated, and the price of oil went up, green technology would suddenly become not only a good decision environmentally but economically as well, spurring its growth.
Yes, there is a negative correlation between the price of oil and green technology. When the price of oil increases, less oil is used and alternative sources of energy like solar and electricity will be sought. But if the price of oil decreases, there will be more usage of oil and the green technology suffers set back.
I see cheap oil as actually being beneficial to alternative energies, because the production of alternative energies depends on cheap oil prices to keep research and development affordable. We still require the use of fossil fuels to produce alternative energy solutions on a large scale, which requires heavy investments of capital that might not be available when the economy is in a downturn and oil prices are up.
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