Edward Conard

Top Ten New York Times Bestselling Author

  • “There are an amazing number of good ideas and interesting points made in Unintended Consequences. The thinking underlying it, and the obvious depth of understanding of the author, are very impressive.” - Steven Levitt, coauthor of Freakonomics; 2004 John Bates Clark Medal
  • “…a very valuable contribution.” - Larry Summers, former Secretary of the Treasury and director of the National Economic Council, president emeritus, Harvard University
  • “…a must-read for serious students of economic policy.” - Glenn Hubbard, Dean, Columbia Business School, and former Chairman of the Council of Economic Advisers
  • “…challenges misconceptions that distort our economic debates.” - Arthur Brooks, President of the American Enterprise Institute
  • “Unintended Consequences represents the most cogent and persuasive analysis of the Financial Crisis to date.” - Andrei Shleifer, 1999 John Bates Clark Medal Winner
  • “…a very valuable contribution.” - Larry Summers, former Secretary of the Treasury and director of the National Economic Council, president emeritus, Harvard University
  • “…challenges misconceptions that distort our economic debates.” - Arthur Brooks, President of the American Enterprise Institute
  • “Unintended Consequences is full of substance, it is one of the must-read books of the year, and once I finish it I will be giving it a second read through right away.” - Tyler Cowen, Professor, George Mason University
  • “Unintended Consequences provides a provocative interpretation of the causes of the global financial crisis and the policies needed to return to rapid growth. Whether you agree or not, this analysis is well worth reading.” - Nouriel Roubini, New York University; Chairman, Roubini Global Economics
  • “…serious thinking for serious thinkers. …a thought-provoking blueprint for growing middle- and working-class incomes.” - Mitt Romney, former Governor of Massachusetts
  • “Unintended Consequences offers deep and well-argued analyses on almost every issue.” - The New York Times
  • “…a comprehensive explanation of the modern economy.” - Julian Robertson, Founder, Tiger Management
Upside of Inequality Oxford Unintended Consequences

AI Summary. France is relatively well positioned to absorb higher energy prices because its economy is less manufacturing-oriented and its industry less energy-intensive than elsewhere in Europe, and its nuclear output has returned to normal after falling a third below capacity. Nuclear supplies close to 70% of French power, making electricity prices less sensitive to gas prices.

Alexandre Stott Goldman Sachs
Date Posted:

GS argues France’s economy is better positioned than most other European countries to cope with the increase in energy prices as nuclear power makes up ~70% of power production which “helps to sever the link between electricity and gas prices.”

Does nuclear power shield France from higher energy prices?

Core argument: Nuclear power accounts for close to 70% of France's electricity production, which makes French electricity prices much less sensitive to gas prices than in other European countries.

France’s economy is relatively well positioned to cope with the increase in energy prices. The first reason is that it is less manufacturing-oriented, and its industry is less energy-intensive than elsewhere in Europe (Exhibit 1, left). Second, nuclear power production is back to normal, after having fallen a third below capacity in 2022 following repairs and outages in 2022 (Exhibit 1, right). We recently showed that France’s large nuclear fleet (close to 70% of all power production) makes electricity prices much less sensitive to gas prices than in other European countries.

Takeaways by Macro Roundup® AI

  1. Nuclear power accounts for close to 70% of France's electricity production, which makes French electricity prices much less sensitive to gas prices than in other European countries.
  2. French nuclear output has returned to normal after falling a third below capacity in 2022 following repairs and outages.
  3. France's economy is relatively well positioned to cope with higher energy prices because it is less manufacturing-oriented and its industry is less energy-intensive than elsewhere in Europe.

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  • This Time is Different (from 2022) — The Impact of Higher Energy Prices on European Manufacturing Industries — Higher oil and gas prices are projected to lower Euro Area industrial production by almost 2% by end-2027, compared with an estimated 4% drag during the 2022/23 energy crisis. The current shock is primarily an oil supply shock affecting industry broadly and is more global, leaving European energy-intensive industries less exposed to competitiveness pressures.
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