Five economic reasons why 2010 will be greener

In 2009, the global recession had a greater impact than all the diplomatic efforts that ended in the Copenhagen flop: energy production hadn’t declined on such a scale since 1981, according to the International Energy Agency (IEA). Here are five economic reasons for the world to become slightly greener in the coming year (just a few of them could be wishful thinking…)

First, high oil prices. Pricier crude encourages investments in alternative energy sources. Crude oil has been trading in a fairly narrow – and reassuringly expensive – range of $64 to $80 a barrel since June. It is not likely to fall below that level.

True, inventories are abundant, and in the longer term the Iraqi industry is emerging from the rubble. But there are several reasons to think oil prices will hold up through 2010 and beyond. Demand growth in big emerging nations like China and India is a solid support. Downward pressure on the dollar would probably help sustain prices. And OPEC probably still has enough power to keep prices from plummeting. So while the oil price is not likely to shoot up to recession-inducing highs, it is likely to stay high enough to keep alternative energy resources profitable.

Telegraph