The U.S. comparative advantage - Article Example

The U.S. comparative advantage Introduction When we talk about the U.S. comparative advantage, we are referring to the ability of the country to produce a particular goods or services efficiently as compared to other countries (O'Sullivan and Sheffrin, p. 444). After many years of economic slowdown, the U.S. government decided to focus on developing its green or sustainable energy as a source of comparative advantage. Sustainable energy is referring to energy resources that can meet the demand of a country without compromising the supply of non-renewable energy resources. Solar power is only one of the few sustainable energy resources other than the wind and geothermal energy system. As part of analyzing the comparative advantage of the U.S. in terms of creating new job opportunities for the Americans, this study will identify the types and major players of solar power followed by discussing the production growth in that particular industry. Upon discussing how the improvements in solar power industry could help boost the U.S. economy, the kind of education and training that needs to be extended to Americans will be tackled in details. Prior to conclusion, the socio-economic costs associated with becoming the world’s leader in the source of solar energy will be provided. Types and Major Players of Solar Power in the U.S. The two types of solar power are the photovoltaics (PV) – a direct source of solar energy from the sun (Knier) and the concentrating solar power (CSP) – an indirect source of solar energy which allows the sun to boil water used in generating power (Martin and Goswami, p. 45). Today, the United States has three of the world’s biggest concentrating solar thermal power stations that uses parabolic trough. These three major players of solar power in the United States includes: (1) the NextEra Energy Resources which partly operates the nine units of the Solar Energy Generating Systems located in Mojave desert California (NextEra Energy Resources); (2) Florida Power & Light Company (FPL) built the Martin Next Generation Solar Energy Center in Martin County, Florida and is expected to be completed by end of 2010 (Mayfield); and (3) a project of Acciona – Pioneers in Development and Sustainability, the construction of Nevada Solar One in Las Vegas, Nevada was completed in June 2007 (Acciona). Silicon Valley’s Sunpower Corp. together with FPL Group recently built the United States’ largest photovoltaic power plant known as the DeSoto Next Generation Solar Energy Center. This project has recently been completed back in October 2009 (FPL; SunPower). Production Growth in the Solar Power Industry Since installation and production of solar power supply requires intensive capital requirements, the local government’s support is crucial to the production growth of the solar power industry in the United States. To create the world’s largest market for solar energy in the U.S., the bill of “10 Million Solar Roofs and 10 Million Gallons of Solar Water Heating Act of 2010” was recently passed (Solar Buzz a). Specifically this bill will help create demand for solar energy system and encourage more power companies to invest in the manufacturing of solar panels. Other than passing supporting bills, the government’s decision to offer up to $87 million funding and publicly introduce the Commonwealth Solar rebate program would encourage more people to install more solar energy in different states (Solar Buzz b, c). Likewise, the Department of Energy (DOE) also provided up to $52.5 million for further research study on how we could take advantage of Concentrating Solar Power systems day and night (Solar Buzz d). Ways in which Improvements in the Solar Power Industry could help Boost the U.S. Economy Passing the “10 Million Solar Roofs and 10 Million Gallons of Solar Water Heating Act of 2010” will help create thousands of manufacturing and installation jobs available throughout the entire 50 states in the country (Solar Buzz a). Likewise, improvements in the solar power industry could indirectly help boost the U.S. economy by making cheaper energy available to local businessmen. The low cost of energy supply will enable more companies to compete with the global markets. As a result of potential U.S. economic growth, more jobs will be created in the near future. Kind of Education and Training that Needs to be Extended to Americans The kind of education and training that needs to be extended to Americans should focus on the long-term socio-economic benefits of using solar energy system. The benefits of using solar energy to homeowners, businesses, and municipalities include not only the creation of new jobs but also help in combating the global climate change and securing the energy independence (Solar Buzz a, b). Basically, informing the public about the long-term benefits of installing photovoltaic and solar hot water heating systems would encourage more people to invest in the use of solar energy. Together with the support of the U.S. government by extending some rebates to the home owners, installation of solar energy panels would be more realistic. Socio-economic Costs Associated with Becoming the World’s Leader in the Source of Solar Energy The socio-economic costs associated with becoming the world’s leader in the source of solar energy is much lesser than the long term socio-economic advantages of investing in the improvements and development of solar energy system in the United States. Although the initial financial cost of developing large-scale and powerful solar system is very high, socio-economic benefits such as opening new employment opportunities, new business opportunities, future energy cost savings and cleaner air environment weighs more. Conclusion The United States has a comparative advantage when it comes to developing and improving its solar system. On top of controlling the climate change, the socio-economic advantages of strengthening the existing solar system in the United States outweighs the financial cost. This statement is true in terms of creating new jobs for Americans and lowering the cost of energy / electricity. For this reason, the U.S. government should continuously support the production growth in the solar power industry not only in terms of financial support but also in educating the people about the need to create demand for sustainable energy resources. *** End *** Total Number of Words: 1,005 References "Acciona." 2010. Nevada Solar One . 11 May 2010 . "FPL." 2010. DeSoto Next Generation Solar Energy Center . 9 May 2010 . Knier, Gil. "National Aeronautics and Space Administration." 2010. How do Photovoltaics Work? 11 May 2010 . Martin, Christopher L. and Yogi D. Goswami. Solar Energy Pocket Reference. International Solar Energy Society, 2005. Mayfield, Jim. "Florida's Treasure Coast and Palm Beaches." 3 December 2008. World's first hybrid solar power facility breaks ground in Martin County, Martin Next Generation Solar Energy Center to be online by end of 2010. 11 May 2010 . "NextEra Energy Resources." 2010. 11 May 2010 . O'Sullivan, Arthur and Steven M. Sheffrin. Economics: Principles in Action. 2nd Ed. Addison Wesley Longman, 2002. "Solar Buzz." 8 February 2010. Washington, DC, USA: 10 Million Solar Roofs and 10 Million Gallons of Solar Water Heating Act Introduced. 11 May 2010 . "Solar Buzz." 2010 b. Boston, MA, USA: Massachusetts Launches Next Phase of Solar Power Program. 11 May 2010 . "Solar Buzz." 9 October 2010 c. Washington, DC, USA: DOE to Provide $87 Million in Funding to Support Solar Energy Technologies . 11 May 2010 . "Solar Buzz." 2010 d. Washington, DC, USA: DOE to Provide up to $52.5 Million for Concentrating Solar Power Research. 11 May 2010 . "SunPower." 2010. FPL Group signs solar power supply agreement with SunPower Corp. . 11 May 2010 . Read More