Adaptability, diversification and energy shocks: a firm level productivity analysis
Energy economists have long argued that energy systems need to be adaptable in the face of shocks. In the early twentieth century, Denmark embodied the opposite, with its industry almost entirely dependent on imports of coal from the UK. Towards the end of the First World War, however, and well into the 1920s, coal imports became expensive and more difficult to obtain. Local diversification was po