Evaluate the transition from oil based world economy to an economy driven by alternative energy sources - Essay Example

Further, there have been adverse effects on the environment from using oil. In the last fifty years, industrialization across the world has led to increases in carbon emission, depletion of the ozone layer, melting of ice caps and a general decrease in the quality of life. Besides this, oil is a non-renewable resource. This means that its quantities on earth are limited and will at some point be depleted. This makes the use of oil as a source of energy unsustainable and unreliable. Herald (12) uses the phrase ‘Peak Oil’ to describe the time when the world will reach its peak oil production.

This will subsequently lead to decline in oil production and the rise in oil prices, causing a significant, yet unpredictable impact. At the moment, some of these consequences are already being experienced in the world. The amount of oil being produced surpasses the amount of new oil supplies being discovered. This indicates that the peak oil stage is fast approaching. With these facts in mind, there is a greater need to shift the world economy to one that is dependent on renewable energy sources that can be replenished and which do not harm the environment.

The following is an evaluation of the significance of this transition and its link to the economic and political processes of the world and the effects of this new venture on the world climate. To avert the effects of oil shortage on the world economy, there have been collaborative efforts to focus on alternative energy sources. These are other sources of energy besides fossil fuels. According to Michaelides (20), what constitutes to an alternative energy source is still being debated. However, the idea behind the term refers to any energy source that is environmentally friendly and not necessarily renewable.

Some of these sources include wind, solar, ethanol, hydroelectric power, geothermal power and nuclear energy. These sources have enormous potential and they are able to meet the world energy demands many times over. Their uptake despite being on the increase over the years has not yet surpassed that of traditional energy sources. Combined, these sources contribute up to only 20 percent of the world energy demand currently. Wind has been one of the best alternative sources which have become a competitive energy source in the world.

It is preferred because is clean energy source and produces no pollution in generating power. Its rebirth was particularly focused on after the 1970 oil crisis. This saw a lot of research being conducted to harness wind and to improve wind turbines. Much more needs to be done to promote the use of wind energy such as the reduction of the cost of equipment, better policies to address the competitive land use and availability of distribution and transmission channels. Energy generation from wind is facing a challenge because it relies on high wind speeds, a factor which is not easily attained in densely populated regions.

To tackle this hurdle, countries such as the Netherlands are opting to set up wind stations in areas which are far from the population although this requires for increase in distribution costs. Some of the countries that have fronted wind energy and encouraged its use include Spain, USA, Denmark and Germany. Wind energy is fast growing as a replacement for oil and these governments are giving incentives to encourage this