Introduction
Renewable energy is becoming more attractive to many governments and investors not only for its ability to reduce carbon emissions in the atmosphere but also because of its cost advantages (Heal, 2009).
Countries involved in green energy investments would increase their novel economic activities by over fifty percent. Investing in green energy would boost the farm net income and create new job opportunities in both developed and developing economies.
The mentioned benefits as well as other objectives are the reasons why departments of energy around the globe highlight on the generation of electricity from the renewable sources. Over the past centuries, no serious attention was given to the renewable energy.
On the other hand, a lot of emphasis was put on the sustainable foundations of the energy structure comprising of waterpower as well as wind-propelled electricity source (Heal, 2009).
Currently, a lot of emphasis is being put on these systems together with the emergence of other new sources such as solar as well as geothermal owing to the increase in population and economic activity by large magnitudes.
Cost advantages of renewable energy
Many countries around the globe are rediscovering the costs and benefits of investing in the green energy. Due to increased efficiency in the production of green energy, costs of installation have reduced while the benefits have increased significantly.
For instance, in the recent years, several achievements have been attained in trying to reduce the costs incurred when using the vital expertise (Heal, 2009). As a result, the competitive advantages of renewable energy have increased compared with different fuel alternatives.
In a bid to lessen the adverse effects posed by non-renewable sources of energy, there are increased efforts worldwide to apply renewable alternative sources of energy such as the application of low-carbon fuels that include nuclear and gas (Heal, 2009).
Moreover, storing and capturing of carbon as well as use of hydroelectric power sources are important in reducing emissions besides deforestation.
Due to the cost advantages that result from renewable power, there are increased investments all over the globe approximated to be over $250 billion in 2011.
According to the countries contribution, over 30% of this figure is coming from the growing economies while over 68% is from the already established economies (Heal & Kunreuther, 2010).
In addition, the reductions in technology expenses are one of the vital attributes of the green energy sources of electricity. For instance, with the use of currently developed photovoltaic module, the prices of green energy have reduced by a half.
Additionally, the application of newly created onshore wind turbines has also caused a great impact in the reduction of fossil fuel prices by a range of between 15-25 percent. As a result, there is increased competitive advantage in comparison to other fossil energy sources such as gas and coal.
The goals of the green energy economic policies
New studies indicate that most economies are not supporting green energy policies ranging from research support to the implementation of the efficient production. As a result, there has been renewed advocacy for the use of green energy.
In other words, advocacy for the use of renewable energy is a significant attribute in policy weakening. Many renewable energy campaigners have enacted various broad objectives to be attained through policy implementation.
The objectives include reducing global warming, poverty eradication, environmental sustainability, and continuous development (Heal, 2009).
Therefore, in the perspective of maintaining development as well as poverty elimination, green energy policies have focused on a number of parts of the policy objectives. The areas include jobs creation, efficient energy production, food security as well as ensuring carbon free cities.
In addition, as far as the environmental sustainability is concerned, there is comprehensible stress societal incorporation. In addition, there has been increased concern on the intra-generation as well as intergenerational fairness in energy production.
In a bid to attain environment sustainability in the energy sector, several gains have accrued ranging from effectiveness in the consumption of energy as well as efficient production (Heal & Kunreuther, 2010). The result of effectiveness and efficiency in energy use and production is the increased job opportunity.
Renewable energy investments and low-cost benefits
The use of newly developed low-carbon transistors have resulted in great decline in the reliance on vestige energy. The process of using renewable energy sources has developed with the use of new technological advances in energy production parts such as the low-carbon transistors.
The novel advances have clearly stipulated the gains as well as expenses in the energy production and use.
Several studies argue that embracing the use of renewable energy has the capacity of yielding a very huge number of revenues to the economy as well as creation of numerous opportunities in terms of jobs (Heal & Kunreuther, 2010).
In addition, researchers have put emphasis on the self-determining nature of oil prices (Heal & Kunreuther, 2010). Therefore, when consumers go for the renewable sources, the effect is in the reduction of fossil fuels prices. Recently, a lot of emphasis has been put on the importance of using the renewable source of energy.
The result is the increased production capacity. For example, apart from hydroelectric power, over 40% of worldwide generation capacity is because of the renewable source. Within the capacity, over 30% of the definite power produced is a consequence of the sporadic wind as well as planetary capability.
Further, studies also show that investments in fossil fuel generating sources involve higher costs compared to the investment in the renewable sources (Heal & Kunreuther, 2010). As such, an increased level of competition of renewable power has advanced sharply.
The reason for increased competitive advantage is relative low-costs in renewable power generation. The most important benefit of renewable energy is the role it plays in the de-carbonizing the planet.
Conclusion
There are increased investments in the green energy because of the renewed benefits.
In spite of the much-advocated reductions in the global temperatures, other benefits that accrue from green energy include increased generation of employment opportunities, the poverty reduction, environmental sustainability and continuous development.
However, these are not the only reasons why governments invest in green energy. Most importantly, the reduced cost and augmented benefits that accrue from investments in green energy.
Nevertheless, policies that are geared towards the reductions of global temperatures have remained a big challenge to many governments. As a result, there have been reduced implementations of measures to the effect of the policies and strategies to reduce carbon emission.
The more applicable solution is the use of green energy sources. Increased investments in the renewable sources encourage the reduction of harmful emissions around globe. Therefore, governments should investment in energy-smart technologies such as smart grid as well as power storage.
Further, governments should increase green energy venture capitals to boost investments in renewable energy. Moreover, investments in research and development in renewable energy should be undertaken to increase efficiency in production, use and storage.
References
Heal, G 2009, “Economics of renewed energy,” Review of Environmental Economics and Policy, Vol. 3 no.1, pp. 4-21.
Heal, G & Kunreuther, H 2010, “Environment and energy: catastrophic liabilities,” Review of Environmental Economics and Policy, Vol. 6 no.4, pp. 421-427.