Stock markets around the world had some of their worst performance in decades this past week, well surpassing that of the global financial crisis in 2008. Restrictions in the free movement of people is disrupting economic activity across the world as measures to control the coronavirus roll out.
There is a strong link between economic activity and global carbon dioxide emissions, due to the dominance of fossil fuel sources of energy. This coupling suggests we might be in for an unexpected surprise due to the coronavirus pandemic: a slowdown of carbon dioxide emissions due to reduced energy consumption.
Based on new projections for economic growth in 2020, we suggest the impact of the coronavirus might significantly curb global emissions.
The effect is likely to be less pronounced than during the global financial crisis (GFC). And emissions declines in response to past economic crises suggest a rapid recovery of emissions when the pandemic is over.
But prudent spending of economic stimulus measures, and a permanent adoption of new work behaviours, could influence how emissions evolve in future.
The unprecedented coronavirus lockdown in China led to an estimated 25% reduction in energy use and emissions over a two-week period compared to previous years (mostly due to a drop in electricity use, industrial production and transport). This is enough to shave one percentage point growth off China’s emissions in 2020. Reductions are also being observed in Italy, and are likely to spread across Europe as lockdowns become more widespread.
The emission-intensive airline industry, covering 2.6% of global carbon dioxide emissions (both national and international), is in freefall. It may take months, if not years, for people to return to air travel given that coronavirus may linger for several seasons.
Given these economic upheavals, it is becoming increasingly likely that global carbon dioxide emissions will drop in 2020.
20102020, The Conversation Media Group Ltd