Today's energy shortages were not created overnight. After years of underinvestment in production capacity, even a small reduction in global supply can send prices skyward, and now policymakers and investors face a full array of difficult choices.
NEW YORK – We have entered a new period of energy insecurity, in which acute shortages will remain a persistent risk. The economic, political, and social consequences of this shift are already apparent. Energy shortages mean rationing, and if rationing is left to market forces, the outcome will be deeply regressive, with poorer people spending disproportionately larger shares of their incomes on basic needs such as heating and transportation.
NEW YORK – We have entered a new period of energy insecurity, in which acute shortages will remain a persistent risk. The economic, political, and social consequences of this shift are already apparent. Energy shortages mean rationing, and if rationing is left to market forces, the outcome will be deeply regressive, with poorer people spending disproportionately larger shares of their incomes on basic needs such as heating and transportation.