No coin nor oath required. For personal study only.
As credit availability in the USA increased in the years leading up to 2008, several things started to happen. Global consumption rose, as did commodity prices. The market for renewable energy and energy saving products was growing healthily.
Emissions, meanwhile, had been increasing on the back of higher consumer demand, given the lack of a comprehensive Federal greenhouse gas emissions policy. But now that the bubble has burst, a big question arises: Will the fall in emissions linked to lower economic output weaken the drive for new energy efficiency and renewable energy investment?
On the surface, it looked likely. In a recession, a particular form of energy conservation kicks in that can in some cases replace typical energy efficiency investment: energy demand decreases because there is more unemployment and less disposable income to spend. So far, US consumption has neatly followed this pattern.
In mid-2008, when the US economy was already slowing, it was importing, and therefore burning, 500,000-750,000 barrels less than usual per day. August 2008 saw the largest single month's year-on-year fall in vehicle miles travelled (VMT) since World War II. This decrease in VMT was also partly responsible for the decline in oil prices, although some oil industry production factors played a part in that too. As the economy continues to slow down, some companies may opt to shut down their less efficient plants, and that too will contribute to lower emissions. Chemical company BASF, for example, has shut down production at one of its plants in Geismar, Louisiana for two months until the end of January 2009 due to a fall in demand.
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