January 21, 2015 / 12:32 PM / 4 years ago

Cheaper oil good for China growth, worry for renewables: central banker

Zhou Xiaochuan, Governor of the People's Bank of China speaks at the Volatility as the New Normal event in the Swiss mountain resort of Davos January 21, 2015. REUTERS/Ruben Sprich

DAVOS, Switzerland (Reuters) - Cheaper oil and gas prices will give momentum to China’s economic growth and employment, but may create an unwelcome disincentive for switching to cleaner, renewable energy sources, the country’s central bank chief said on Wednesday.

People’s Bank of China Governor Zhou Xiaochuan told the World Economic Forum in Davos, Switzerland, that lower prices would be good for the economy and job creation because China was dependent on imported oil and gas.

“We worry a little bit that the price signal may give disincentive for new energy types to develop, and could reduce investment in new non-fossil energy,” he said, adding that uncertainty about energy prices could delay investment in solar, wind and other renewable energy sources.

Writing by Paul Taylor; Editing by Kevin Liffey

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