IMF highlights downside to prolonged low prices of oil and other fuels

Tokyo

PRICES of oil and other fossil fuels are likely to stay low for a long time, and while this might appear good for economic activity, it has negative implications for fighting climate change, International Monetary Fund (IMF) chief economist Maurice Obstfeld has warned.

In a joint blog with IMF commodities specialist Rabah Arezki, he said low fossil-fuel prices could discourage further innovation in and adoption of cleaner-energy technologies; the result would be higher emissions of carbon dioxide and other greenhouse gases.