Do Low Gas Prices Hurt Renewable Energy Adoption? Unlikely, Says Analyst

Gas prices have fallen dramatically in the U.S.--40 percent in six months--and it's assumed by some that this will hurt the renewable-energy industry.

With the financial advantage of solar or wind energy curtailed by cheap oil, the logic goes, consumers will be less interested in switching from fossil fuels.

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That's not necessarily the case in reality, however.

Falling oil prices have a limited impact on renewable energy, and their volatility actually underscores the value of clean power sources, argues a new blog post from the Brookings Institution.

First, the authors claim oil prices and renewable-energy adoption aren't directly related, because each represents a different sector of the energy market.

Oil is primarily used as a transportation fuel, while renewable sources are used to generate electricity.

According to the International Energy Agency, diesel and other petroleum fuels constitute just 5 percent of global power generation today--compared to 25 percent in 1973.

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