Unintended Consequences

Revisiting the thesis of what happens when the supply curve for a utilitarian economic good is forced to shift the left, while the demand curve shifts to the right:



[Source: https://www.theguardian.com/money/2...ds-to-calm-crisis-fears-as-uk-gas-prices-soar ]


(Oh dear... )








So millions of less well-off Britons - the ones who can least afford increases in their living expenses - will be impacted by what can only be described as a total policy failure.

(But hey, at least the UK elite can boast at the upcoming COP26 that they have reduced emissions.)

And while this is the tale of natural gas, the same thing is happening in coal as well as LNG.

It's what you get when you fail to invest in production capacity of fossil fuels too early.

The upcoming UN Climate Change Conference (COP26 ) will be interesting against the backdrop of the energy crisis in the UK (not just the UK, mind, its Europe-wide).  (Hope the conference venue doesn't experience a lack of power.)

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