Green Tree Investments, Llc Essay

As the global population increases exponentially, having passed six billion in 1999, the world population is expected to be 8.9 billion by the year 2050. The worlds energy consumption will increase by an estimated 54 percent by 2025. Energy demand in the industrialized world is projected to grow 1.2 percent per year. Energy is a critical component of sustained economic growth and improved standards of living. One of the major requirements for sustaining human progress is an adequate source of energy. As the world’s technological enhancements and standards of living improve, so too does their appetite for electricity.

On the same note, the energy revolution spoken of above brings forth another advance in the ongoing global climate situation. The nature of the Kyoto Protocol calls for nations to increase research and eventually semi-convert their energy usage to accommodate for cleaner energy. Products such as solar power, wind power, biomass, geothermal power, and hydropower are now widely being studying to create processes that use less coal, oil, and natural gas in production. Altogether the results have

Continued investment should be encouraged in order to develop the best technology in energy for the future. Continued investment will allow for new and exciting developments that will improve the energy industry in the long run. It will assist the industry in satisfying the growing demand and need for sustainability. There are a number of political and legal factors that are significant to the energy industry. For example, laws and government regulation on energy use could potentially affect the demand for domestic energy and thus lead to a shift in prices. However, with an increase of clean energy use, the demand for energy will not change dramatically due to laws and regulations, instead, the future prosperity of the globe will improve.

Whilst it may seem a “no-brainer” to cease investment in non-renewable power and transfer our effort, resources and investment into developing renewable energy sources, the reality is that we have become so reliant and dependent upon non-renewable energy – particularly fossil fuels – that we must continue to use, develop, and invest in such energy to maintain the living standards that we enjoy today. In our short to medium-term future, and in spite of our ever-increasing scientific knowledge about the environmental price that we pay in using non-renewable energy, we must continue to invest in it. Let me explain why.

In contrast, some believe that renewable energy is a key factor involved in helping the economy to grow. Many jobs are created in the manufacturing and running of renewable energy plants. The renewable energy and energy efficiency technologies created 8.5 million new jobs and $970 billion in revenue in the year 2006 (Langwith, “Renewable Energy is Economically”). The American Solar Energy Society says by 2030 it could generate up to $4.5 trillion in revenue for the U.S and create 40 million new jobs. This would represent one in every four jobs (Langwith, “Renewable Energy is Economically”). This shows how vital it is to get renewable energy companies in the U.S. It is important to build a stable economy again and do it all while helping the environment.

With American population expected to increase by approximately fifty percent over the next fifty years, some sort of energy reform is needed (Lehrman 2). The most commonly proposed idea is for America to stop relying so heavily on fossil fuels, and to turn its focus onto renewable sources of energy, such as solar power and hydroelectricity (Energy Information Administration). If the United States could realize the benefits of renewable energy, then much of the world’s energy problems could be solved.

Global economy is driven by energy markets. Energy does not only play a significant role in consumer products but also an important input in nearly all the industries. (Efimova O. and

An article by Todd Woody of The Atlantic (Woody, 2013) has stated that developing countries will account for 65% of the world’s energy consumption by 2040. The majority of such consumption being produced by non-OCED nations such as India and China. This figure was published by the United States Energy Information Administration. This can be summarised as a 2.2% annual increase in fossil fuel usage in non-OCED countries compared to that of 0.5% in OCED communities such as some of the EU, North America and Australia.

Bilen et al., (2008:1531) predicted that global energy consumption will account for around 85% of the increase in world primary demand over 2002– 2030. The increasing of global energy demand happens the global stock of fossil fuel resources may be adequate for short term period, thus requiring the development of renewable energy sources, which would not decrease the stock of fossil fuel resources available for future generation. There is an increasing interest in the development of renewable energies such as biofuel and wind power, which have a great potential energy to produce enough power for the world’s population demand.

Being the second largest population in the world, India has accounted for the 10% growth in demand of energy around the world since 2000. Since the start of the 21st century the country’s demand for energy has increased more than 46% on a per-capita method. By 2013 India consumed 5.7% of the total

The current demand for energy is akin to the “perception of crisis that preceded the 1973/74 oil price shock as rapid economic growth in the 1960s challenged energy industry’s ability to expand capacity” (Lynch, 2002). Following the downturn in the global economy, the demand for energy is anticipated to increase in the coming years as the world strives towards a better economic position. This potential increase in demand will place increased pressure on existing sources of energy supply.

Energy is a critical component for every economy and society around the world. Energy is divided into two groups, nonrenewable (coal, oil, natural gas, and nuclear) with a finite amount found around the globe and renewable (hydro, tidal, solar, wind, geothermal, and biomass) that are constantly being replenished so that they will never run out (Green Energy Choice, 2011). The international economic impact of renewable energy is explored by examining subsidies, strategic policies, and comparative advantage of renewable energy.

“Doubling the share of renewable energy by 2030 could deliver around half of the required emissions reductions…,” the author of REthinking Energy 2015, a report released by the International Renewable Energy Agency (IRENA) ahead of the 21st Conference of Parties (COP21) to the United Nations Framework Convention on Climate Change (UNFCCC) where a new agreement is to be signed about climate change at Paris summit in December 2015. In addition, the report points out that renewable energy is countries’ essential tool not only to fulfil climate change mitigation objectives but also to incite economic growth. In fact, I belief that renewable energy is the pledge that each nation must take to avoid potential harms of ecosystems. In brief, my research concerns the renewable energy resources and their integration with power grids.

In the recent years, World’s energy consumption has been increasing at a rapid rate due to economic development and population growth. The International Energy Outlook report released in July 2013 (IEO2013) projects that there will be 56% rise in the world energy consumption by 2040 (ref). It has been projected that total world energy use rises from 524 quadrillion British thermal units (Btu) in 2010 to 630 quadrillion Btu in 2020 and to 820 quadrillion Btu in 2040, which corresponds to an increase of 16% and 36% respectively (Figure 1.1). It has been predicted that much of the growth in energy consumption may occur in countries that are not included in Organization for Economic Cooperation and Development (OECD) (ref). At present, there prevails huge variation in the economic performance of various countries world-wide. For OECD countries, the pace of economic growth varies but is relatively slow when compared to emerging

First, the energy industry as is the case with any industry is comprised of firms that have the inherent goal of profit maximization. Profit maximization for the energy sector entails selling energy with the biggest profit margin possible, something that is harder to do when the initial cost of the product is raised. From a profit maximizing perspective, firms have absolutely no incentive to use renewable energy if it costs more than polluting alternatives. Politicians also have little incentive to slow down energy production in their countries. Authors Al-Mulali and Mohammed (2015) have shown that there is a bi-directional causal relationship between energy consumption and GDP for wealthier nations, and that third world nations are more dependent on energy consumption for economic growth. Herein lies the second issue, the problem of political economy. First world nations used fossil fuels in large part to attain their elevated standards of living, and third world nations wish to catch up. The easiest way to catch up, is to burn more fossil fuels, just like the first world did. First world nations are now trying to cut global emissions, which third world nations are still very dependent on for their own well-being (Figueres 2015). Therefore, third world politicians must now choose between looking out for their citizens by bringing up their own countries’ GDPs, and the greater good, which in this case is battling climate change