Impact of Investment in Renewable Energy on World Oil Prices and Economic Growth of OECD Counties - Dissertation Example

Download file to see previous pages The law of supply suggests that the market prices of goods will increase if the supply of goods is inadequate whereas the market prices of goods will decrease if there is an excessive supply of goods in the market (Hollander, 2008, p. 202). The law of demand suggests that if the market price of goods increases, its demand would decrease accordingly (Sexton, 2008, p. 91). In relation to the law of supply and demand, huge investments made in the development of renewable energy resources bring in the question as to whether or not the presence of alternative energy resources could eventually help decrease the world market prices of oil. Likewise, it brings in the question of how an increase in the number of renewable energy resources could affect the economic growth and development of OECD countries.

1.1 Purpose of the Study
This study aims to determine whether or not the increased investment in renewable energy resources could literally affect the movements of the world market prices of oil. Furthermore, this study aims to determine how the massive investment made in the development of renewable energy resources could affect the economic growth of OECD countries.

1.2 Research Objectives
The main objective is to encourage the student to think about the financial costs and trade-offs between the use of renewable and non-renewable energy resources. Part of the research study's objectives is to think about whether or not the long-term advantages of investing in renewable energy resources could outweigh the disadvantages of staying dependent on the use of non-renewable energy resources.

1.3 Research Questions
The following research questions will be answered at the end of the research study:
1. Does an increase in overall investment in renewable energy resources decrease the world market prices of oil?
2. Does an increase in the available renewable energy source decrease the global demand for oil usage?
3. Why is it hard for people not to use non-renewable energy resources?
4. What are the pros and cons of each type of renewable energy resource? ...Download file to see next pages Read More