We have entered a new period of energy insecurity, in which acute shortages of the kind seen this summer will remain a persistent risk. The economic, political, and social consequences of this shift are already apparent. Energy shortages mean rationing, and if rationing is left to market forces, the outcome will be deeply regressive, with poorer people spending disproportionately larger shares of their incomes on basic needs such as heating and transportation. Energy inflation, in turn, will increase the risks of social upheaval, as incumbent leaders in rich and poor countries alike are quickly learning. Though energy shortages naturally will lead to greater investments in additional capaci
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