Question

Just as the move from an agrarian-based economy to an oil-based economy created a destabilizing effect on the poor and working class, how might the shift to a clean-energy economy affect today’s poor and working class? How will the shift affect less-developed nations in comparison to more-developed nations?

Answer 1

The shift in energy consumption will naturally affect those that work in energy production. People who work on the supply chain for energy sources like coal and oil may find themselves out of a job. These people often have lower education levels than other sectors, depending on where they are on the supply chain. We are already seeing this happen in various areas of the US, such as with West Virginia's coal industry.

Less-developed nation's may be harder hit, although their already low wages may make it easier to compete in new industries. More likely, less-developed countries, which often serve as energy exporters, may see a larger hit to their GDP as energy demand shifts to renewables. Nothing is permanent though, and the true test will be which countries foresee this shift and make moves to adjust to it as early as possible.