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 more efficient than most forms of natural gas or coal energy production (US Department of Energy, Levelized Cost of New Generation Resources in the Annual Energy Outlook 2011, 2011). In an effort to promote renewable energy governments around the globe have pledged their commitment to the development of renewable energy in the form of subsidies. Feed-in tariffs have become a popular way to promote renewable energy for many governments on all levels. Feed-in tariffs work by setting a rate that renewable energy producers will be paid for energy over an extended period of time and the local utilities are required to accept all renewable energy to their grid at the stated rate of payment (Mendonca & Jacobs, 2009). Feed-in tariffs have been so successful because they are inclusive to all types of renewable energy, provide a stated fixed rate to be paid for cost analysis, and have no real cost impacts to governments because the end users are paying for the program in the form of high energy costs (Me... ... middle of paper ... ...nt/article/2010/09/03/AR2010090302200.html Skynews (January 7, 2009). Russia 'Cuts Off Gas To Europe'. Retrieved from http://news.sky.com/skynews/Home/World-News/Russia-Has-Cut-Off-All-Natural-Gas-Supplies-Through-Ukraine-And-Czech-Republic/Article/200901115198630?lpos=World_News_Article_Related_Content_Region_3 US Department of Energy. (2011). Levelized Cost of New Generation Resources in the Annual Energy Outlook 2011. Retrieved from http://www.eia.gov/oiaf/aeo/electricity_generation.html US Department of Energy. (July 27, 2011). World Energy Demand and Economic Outlook. Retrieved from http://www.eia.gov/oiaf/ieo/world.html Wolak, F. (January 19, 2011). Can the U.S. Compete With China on Green Tech?. The New York Times. Retrieved from http://www.nytimes.com/roomfordebate/2011/01/18/can-the-us-compete-with-china-on-green-tech/our-comparative-advantage
The path that the United States took to become the largest consumer of power in the world was one largely chosen by market forces and government intervention. The role of culture on the use of energy is negligible in comparison with the influences of economic and political factors. The choices to adopt several new methods to produce energy were caused by the backing that these energies had in creating wealth or saving money for those who used the new energy and by the backing of the government through direct and indirect subsidies. One can examine the transitions to coal, oil, nuclear power, and current transitions toward green energy in order to see that the market forces are the dominant factor in dramatic increase of energy consumption in the United States.
... middle of paper ... ... Due to the recent economic struggles in the U.S., it is important that we maintain economic competitiveness with other countries. Instead of importing oil, the U.S. should invest in clean-energy technology innovation, which would boost growth and create jobs.
Palmieri, Nancy. “Off the Grid or on, Solar and Wind Power Gain.” USA Today 12 April 2006. Print.
The year is 2200. The world is going through a fossil fuel shortage. Oil reserves are almost completely consumed and it is becoming impossible to find new fossil fuel sources. Not prepared for this event to occur, The United States, has no alternative options. As a result of the oil shortage, the standard of living deteriorates. Heat in homes, supermarkets full of food, and transportation, all basic necessities taken for granted, will be depleted because fossil fuels are used to power almost everything. The key to the prevention of this future is renewable energy. Unfortunately the support for the use of renewable energy is weak and ineffective. Unless the US puts forth effort to research and promote the use of renewable energy to consumers, conversion from fossil fuels to renewable energy will no longer be an option.
Energy is the basic necessity of daily life. Nowadays, dependence on fossil fuels for energy needs becoming lower in numerous countries due to the potential of renewable energy to supply sustainable energy to the huge populations in many developing countries who are short of clean and continues energy. Generally, renewable energy can be defined as energy that is derived from natural resources which are constantly replenished and theoretically inexhaustible. Fossil fuels on the other hand can be described as energy that cannot be renewed and will eventually diminish. Thus, in many developing countries renewable energy is the alternative energy to replace non-renewable energy or commonly known as fossil fuels. In addition, according to Sorensen (2004), there is a greater demand for renewable energy sources nowadays due to the uncertainty of fuel price rise in living expenses. Commonly, there are many types of renewable energy available in our world such as wind power, biomass energy, solar energy, hydroelectric power and geothermal energy. However, the main three example of renewable energy are hydroelectric power, solar and biomass energy (Refer to Figure 1 in Appendix 1).
In the debate of traditional energy vs. renewable energy the clear winner is renewable energy. Renewable energy is vastly superior over traditional energy because it decreases dependence on foreign resources, produces no emissions, and is not limited in quantity. Opponents of renewable energy are likely to argue that this is not the case and that instead, traditional energy is better because it creates job growth, is reliable during all hours and climates, and comes with a lower cost. These advantages however are either misconstrued or hardly outweigh the long-term positive benefits of renewable energy.
The United States currently relies heavily on coal, oil, and natural gas for its energy. While the price of natural gas per barrel continues to plummet, the United States is constantly seeking new sources of renewable energy. Renewable energy consists of any type of natural resource (solar power, ocean power, wind power, rain, snow, etc.). that naturally and automatically replenishes itself. Renewable energy is important because it is infinite and everlasting, meaning our children and our children’s children will be able to utilize these resources long after we are gone.
Nelson, V. (2008). The 'Standard'. Introduction to Renewable Energy. Chicago: Springer University Press, Inc.
Energy can be put into two broad categories Renewable energy and none renewable energy. Renewable energy sources can be reused continually as they are abundantly found in nature. All of them are non-polluting but devices used to collect the energy may impact the environment adversely. They are free but producing storage equipment or converting them into another form of energy may be costly.
In the search for alternatives to fossil fuels, scientists and policy makers have focused on three options: nuclear power, energy from biomass; and a combination of wind, water, and solar power. Nuclear power, however, is much more costly and runs the risk of having it fall into the wrong hands where it could be turned into a weapon of mass destruction. The third option entails wind turbines, photovoltaic power plants and rooftop systems, concentrated solar thermal power plants,...
“Is Renewable energy an economically viable option for South Africa?” “Renewable Energy is a source of energy that is not exhausted when used.” “Economical means giving good value in relation to the resources used or money spent.” “Viable means capable of working successfully; feasible.” (Soanes, Hawker & Elliot et al., 2005)
Why do we need to rely on renewable sources? Most of the energy that we use today comes from fossil fuels such as natural gas, coal, and oil. All of these resources are non-renewable, so you can finish one day. In order to have a better world and a healthy environment for the future, people are trying to obtain energy from natural resources instead of non-renewable sources. In the lecture “Renewable energy resources” (2014), Mistry focuses on some advantages and disadvantages of renewable energy.
With the depletion of fossil fuel resources comes speculations and debates about alternative energy sources. The world, including the Philippines, is practically dependent on a dwindling non-renewable source of energy. Today, experts are debating about and considering three options: Nuclear, Solar, or Wind Energy. Everyone has been accustomed to the bad image of nuclear energy as a result of the Chernobyl and Fukushima incidents above all others. The popular belief is that radiation from a nuclear meltdown is very harmful to humans and other living things—which is true—and that nuclear power plants are very dangerous and not ideal—which is not. According to Smith, et. al (n.d), all the nuclear disasters that ever occurred were caused by human error and natural disasters like tsunamis, not one because of system failure. Putting the false beliefs aside, with proper engineering and adequate maintenance by experts, a nuclear power plant is a very ideal and viable source of energy for the following reasons:
In addition to, a huge issue with non-renewable energy is the fact that we get most of it from foreign countries. According to a recent study done by Energy Information Administration, “58% of our petroleum comes from outside the country”, this means as some speculate, that o...
...g the Energy Revolution." Foreign Affairs. Nov/Dec 2010: 111. SIRS Issues Researcher. Web. 21 Nov 2011.