International Economics of Renewable Energy
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.
Subsidies
Renewable energy in its various forms can be over 5 times more expensive than conventional types of fossil fuel forms of energy generation and none are
…show more content…
The state of California has set an aggressive schedule for the required amounts of renewable energy use, stepping from 20% in 2013, to 25% in 2016, and finally 33% by 2020 (DSIRE, 2011). By setting required levels of renewable energy to be used by energy companies the government leaves it up to the generator to develop the most cost effective source of renewable energy and the government faces small cost impacts because the brunt of the costs are forced on the users. Subsides are being provided directly to renewable energy generators by governments all over the world. German has launched an aggressive campaign to have 100% of its energy come from renewable sources. The German government gives direct subsidies to individuals and businesses for the installation of roof top solar panels on their property, thus making renewable energy more attractive for small renewable energy generators (Burgermeister, 2009). Direct subsidies have become a required part of renewable energy for small producers to find it cost effective and current efficiency levels show that they will be required for many years to come. Subsides for renewable energy comes in many shapes and sizes, but the end result is that renewable energy is significantly more expensive than current nonrenewable energy. Perponets of renewable energy claim the economic effects of renewable energy are seen in stable prices
Transition: Now that I have told you the differences between Sustainable, nonrenewable and renewable energy, now I will address the high energy prices in California.
In recent years there has been great concern over the growing demand for energy, and the lack of non-renewable energy resources to meet the demand in the future. In addition, the question of “sustainability”—the ability to balance social, economic, and environmental needs in energy production to meet both current and long-term requirements—has come to the fore. It is clear that America must expand energy production quickly, and that we must develop renewable, sustainable energy sources to meet long-term demand and protect our future. There are many proposed solutions, such as wind and solar power. But the technology for these resources is not yet fully developed, making them, at best, low-output alternatives. Because renewable sources are
Renewable energy is a hot topic these days. With the ever growing increase in population, demand of energy is also increasing everyday. Non-renewable sources are limited, not environment friendly and increase or decrease in production of these sources can have direct result on the inflation. Renewable sources, on the
Each year the cost of designing, building, and maintaining renewable energy infrastructure and technology decreases. This trend is most prominently visible in the solar and wind industries which have both “seen stock prices jump since Congress approved an extension of tax credits for renewables” in late 2015 (Warrick). One cause for the renewable industry’s growth is the influx of investors. In November 2015, Goldman Sachs “quadruple[d] its investments in renewables to $150 billion,” a trend that has only become more prevalent in 2017 (Warrick). Part of the strong appeal of renewable energy is that it pays itself off over time. Instead of paying an electric bill every month, year after year, one can pay to have solar panels installed, that while initially expensive, never require additional payments. Not only are they free after the initial payment, some electric companies pay customers for installing panels and investing in clean energy. Many people complain that renewables produce far less power per dollar than coal, natural gas, and oil. While this may be true, the gap is quickly closing as renewable technology improves and prices drop. The convenience of only needing to pay once for renewable infrastructure far outweighs the greater power output that non-renewables provide for
The renewable energy industry can be a very profitable market to enter and many different governments and business are investing in the industry. Renewable energy is a less expensive long term option and many developing counties have renewable energy sources that power their populations; whereas, develop counties do not have those same resources. The renewable energy industry will be more prominent by 2040.
In “Alternative Energy Should Not Be Pursued” the author argues that alternative energy sources are in fact more costly and less efficient than traditional energy sources. Environmentalists and advocates of renewable energy propose that the world can be powered without producing harmful greenhouse gases via renewable resources; but the author argues, with the help of experts Peter Van Doren and Jeremy Taylor, that the higher costs would override any benefits. The United States government has bolstered the renewable energy industry since the 1970s with incentives and subsidies despite there being little to no economic benefit to promoting such types of energy production. The author also seeks to show that this is not a battle between “Big Oil” and an “infant industry,” but this alleged
This proves that there are benefits to using renewable energy such as the how they are affected by the cost of fossil fuels. They assert, “When the price of fossil fuels increases, the economics of renewable energy sources improves and there is an economic incentive to invest in renewable energy. When fossil fuels are cheap, many renewable forms of energy… fossil fuels increases, many forms of renewable energy become economically viable” (Enger and Smith
Global warming and climate change is one of the most pressing issues in the contemporary society given its continued impacts on human life and the world’s ecosystem. The considerable effects of this issue have raised huge concerns among policymakers, governments, and the public. As a result, various initiatives have been developed in attempts to lessen global warming or climate change, especially those related to reducing the emission of greenhouse gases to the Earth’s atmosphere. Governments across the globe including the United Kingdom government have adopted various policies that focus on dealing with the issue. There are various policies that help in dealing with the issue including lessening greenhouse gases emissions, adapting to the effects of climate change, and geo-engineering of the climate system. The attempts by the UK government to address this problem require an understanding of the increasing energy demands and its future impact and use of suitable renewable energy sources.
Converting these resources into usable energy requires money. Money is required to obtain them, to ship them, and to convert them. This conversion costs money to build the equipment for converting it, money for parts when something breaks, to maintain it, and to clean the equipment. Some parts cost a substantial amount of money to make or in some cases ship in. As one can see, non-renewable energy resources are expensive.
The United States is the second largest producer of greenhouse gases in the world, and yet is doing very little to fix this startling statistic (Dennis). The US’ reliance upon outdated energy sources continues to harm both the environment and the economy by producing millions of tonnes of pollution every year and costing the government billions of dollars (“Fact Sheet: Clean Power Plan”). Fossil fuels have been the main energy sources in America since the industrial revolution, and it is time to make a change. Renewable energy is energy harnessed from sources like the sun, wind, or water, and has little to no negative effects on the environment (“Renewable Energy Technology Basics”). The United States needs to integrate and increase the use of these types of energy across the country, as well as implement positive environmental policies, to prevent further pollution of the earth and combat the effects of climate change.
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.
Renewable energy can be more affordable to people in the U.S. There are many possible ways it can be more affordable. For example, a renewable energy such as electricity can power automobiles with a be less expensive cost than to power it on fuel. Since fuel is related with international market, the price on fuel often result to inflation and deflation (Leistikow n. pag.). According to the chart on Gasoline vs. eGallon prices, Dan Leistikow compares, “Fueling your car with gasoline costs roughly 3 times more than fueling with electricity” (n.
In this day and age, we have new energy sources that could be used to power our homes and transportation. Wind and solar power are used all over the world, but are still used far less than fossil fuels. Most would say it’s not reliable or it doesn’t make any profit. While both statements are true, it doesn’t mean we can’t make a better future using renewable energy. In fact, the only reason we don’t use renewables for everything is that we don’t want to change. The hard truth is we need to change. Fossil fuels are great right now, but if we run out, humanity must have another source of energy.
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.
This essay focuses on two renewable energy resources. First of all, biofuel is now accepted as alternative energy in worldwide. The figures continue upward trend in the biofuel production. ‘An annual growth rate of 6.8% from 2006 to 2030 is expected for total biofuels consumption in the transport sector’ (International Energy Agency: 2008 cited in Zhou, et al., 2009:S11). Significant leaders of the biofuel market are Brazil, the United States and the European Union. The results of research indicated that 92% of the world’s ethanol is produced by Brazil and US together, while 90% of the world’s biodiesel manufactured by the EU. In addition, several developing countries in Asia such as Indonesia, Malaysia, Thailand, and the Philippines have an enormous potential for biofuel production. Now these countries are