International Economics Of Renewable Energy Essay

2015 words - 8 pages

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.
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 (Mendonca & Jacobs, 2009).
Government mandated levels of renewable energy use required by be used by energy companies have been increasing around the globe on national, state, and local levels. 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...

Find Another Essay On International Economics of Renewable Energy

The Environmental Impact of Renewable Energy

840 words - 3 pages The amazing thing about renewable energy resources is that they do not deplete. These energy resources include energies such as hydroelectric energy, solar energy, wind energy, and geothermal energy. The major advantage of using these resources is that the environmental impact is extremely low when compared to the use of fossil fuels and other energy processes. One of the most used renewable energy sources is hydroelectric power. When you

Exploring the Possibilities of Renewable Energy

3668 words - 15 pages What would happen if the sources of the world's energy suddenly disappeared? Do not think it is impossible. While fossil fuels provide an overwhelming majority of the world's energy, they are non-renewable. So, what happens when they run out? This research paper confronts this question with a balanced view attempting to address the issue of what sources might provide energy in the future and come to an objective conclusion. As the world

Economic and Financial Viability Analysis of Renewable Energy Projects

2131 words - 9 pages This chapter discusses the theory underlying measurements of asset utilization as a way to provide support to economic and financial viability analysis of Renewable Energy Projects (REPs). It starts by providing an overview of the literature for economical and financial viability analysis within the Renewable Energy Sector and follows revealing the gap in the literature that this thesis tackles. 2.1 Challenges for Business Evaluation of REPs

Assess The Potential Of Three Sources Of Renewable Energy As Alternatives To Using Fossil Fuels

1793 words - 7 pages ] Hunt, S.U; Sawin J.L & Stair, P. (2006), “Cultivating Renewable Alternatives to Oil” in State of the World , pp. 61-77. UK: The Cromwell Press. Greenpeace n.d. Renewable Energy and Climate Change. [Online] Available at: [13 March, 2008] Fanchi, J.R. (2005). Energy in the 21st Century. USA: World Scientific Company. Middleton, N. (2003), The Global Casino: An

The Pros and Cons of Ethanol as a Renewable Source of Energy

5969 words - 24 pages , curbing of climate change and the Greenhouse Effect, and perhaps even the luxury of supplying most or all of our energy domestically. This means that countries like the U.S. would stand heavily resistant to both the ramifications of a global energy crisis and to international political tensions surrounding the trading of oil. Despite its being more expensive, there is much to be gained from renewable energy. Where We Stand On Energy As

Renewable Energy - Choices for Tomorrow Objective of the survey: • To know how much people are aware of the Renewable Resources. • To know how many people know the uses of Renewable Resources.

4226 words - 17 pages Business Research Method Contents Introduction What Is Renewable Energy? Renewable energy is any source of energy that can be used without depleting its reserves. These sources include sun, wind, biomass and hydro energy. Each of these energy sources can be harnessed to varying degrees and at varying costs. Definition: Renewable Energy is a natural energy

International Trade Concepts Simulation, Economics 372, University of Phoenix

1098 words - 4 pages PAGE PAGE 6 International Trade Concepts Simulation International Trade Concepts SimulationLaura GabbardUniversity of PhoenixECO 372 Principles of MacroeconomicsDaniel M. Rowe, MBAApril 7, 2008International Trade Concepts SimulationThis assignment consisted of using a simulation pertaining to international trade advantages and limitations of international trade for the country of Rodamia. The simulations serve to familiarize the student with

Wide scale penetration of Renewable Electricity in the Greek Energy System in view of the European decarbonization targets for 2050

761 words - 4 pages consumption in almost all final sectors (see Figure 1). Figure 1: Final energy consumption by sector In 2009, the European Union (EU) has agreed (Directives 2009/28/EC and 2009/29/EC) union wide energy and emissions targets for 2020, namely 20% reduction of greenhouse gases (GHG) emissions compared to 1990 levels, production of 20% of gross final energy consumption from renewable energy sources (RES) and 20% energy efficiency (formalized by

A comparison of two types of renewable energies in China: hydro energy and biomass energy, in order to determine the most suitable for China’s future

1860 words - 7 pages free-carbon electricity. Renewable and Sustainable Energy Reviews 14: 1014 - 1025. (S) Yüksel, I. 2007. Development of Hydropower: A Case Study in Developing Countries. Energy Sources Part B: Economics, Planning & Policy 2 (2): 113-121. Academic Search Premier, EBSCOhost (accessed March 2, 2011) Yüksel, I. 2009. Hydroelectric Power in Developing Countries. Energy Sources Part B: Economics, Planning & Policy 4 (4): 377

Economics, Politics and (International) Political Economy: The Need For a Balanced Diet in An Era of Globalisation

6749 words - 27 pages interaction between economics and political science,( n3) is a rethink of this intellectual apartheid taking place?Over the last few years scholars of 'mainstream' political science--I cannot resist pointing out--have belatedly begun to recognise what contemporary students of international political economy had taken for granted for three decades: politics and economics are not separable analytical categories.( n4) And in pockets of the economics

Renewable Resources

2077 words - 8 pages book “Renewable Energy : Sources and Methods” the author quoted The international environmental action group, Green peace, specifying its unequivocal opposition to the risks nuclear power poses to the environment and humanity. “ Despite what the nuclear industry tells us, building enough nuclear power stations to make a meaningful reduction in greenhouse gas emission would cost trillions of dollars, create tens of thousands of tons of lethal

Similar Essays

Adaptation Of Renewable Energy Essay

1782 words - 7 pages Renewable energy is generated from natural resources such as sunlight, wind, rain, tides, and geothermal heat. On October 5, 2010 the U.S. Department of the Interior (DOI) approved the first sizeable solar energy plants to be built in California which will be divided into two developments totaling 6,800 acres of public land. This project is estimated to last 30 years while generating almost 1,000 new jobs. The solar energy technology that will

Alternative Sources Of Renewable Energy Essay

1687 words - 7 pages have been used, they cannot restock themselves or ever be used again. Renewable energy is a supply of energy that can be used as many times necessary and does not use any compound made from the Earth. There are many different types of fossil fuels and renewable energy that we use for energy sources today. Recognizable renewable resources are geothermal, solar and wind power. Common types of fossil fuels are coal, oil and natural gases. An

Renewable Energy: The Future Of Energy

1052 words - 4 pages fuels, renewable energy sources must be adopted to maintain the economic growth and development and to maintain the environment and prevents more risks of global warming. As it is stated by Turner (687) “we cannot continue to burn fossil fuels and somehow sequester the produced CO2 efficiently enough to actually address global warming.”Renewable energy is energy generated from natural sources, and it provides a clean, and feasible long-term

Renewable Forms Of Energy: Wind Energy

1828 words - 7 pages Renewable forms of energy are becoming more and more necessary for a sustainable future. Wind energy is a form of energy that is becoming more and more popular, and it offers a way for people to harness energy from something natural to create electricity. Wind energy in addition to other sustainable forms of creating energy are going to start taking the place of fossil fuels as people realize the true benefits of using them. There are many