The Benefits of Using Renewable Energy - Research Paper Example

The benefits of using renewable energy “We've embarked on the beginning of the last days of the age of oil. Embrace the future and recognize the growing demand for a wide range of fuels or ignore reality and slowly—but surely—be left behind”. Mike Bowlin, CEO & Chairman - ARCO Introduction: The drastic rise in the levels of anthropogenic carbon dioxide (CO2) due to industrialization has triggered off a series of negative reactions which has disrupted the natural fabric of the environment resulting in global warming, thus posing a unique challenge to the human civilization. Countries across the globe are now being forced to find and develop alternative sources of energy which may help them in restoring the balance, and reduce the carbon footprint and reduce the excessive reliance on oil which is fast depleting and is almost on the verge of drying up. Ideally, the most effective way to address this issue is resorting to renewable and sustainable sources of energy. This paper on Renewable Energy aims to discuss the various benefits of renewable sources of energy and the far ranging implications of the same. This includes a comprehensive review of the economic, environmental, political benefits as well as an in-depth analysis of cases of countries from across the globe relying on and deriving benefits from renewable energy sources. Rationale: The key benefit of renewable energy is not restricted merely towards mitigating climate change but extends far beyond that. It is about resolving the energy crisis faced by the world in present times by substituting oil with renewable energy sources. The fact that oil reserves are fast depleting has now been acknowledged by the world (Sorrell et al., 2010; Aguilera et al., 2009) and both – the oil rich countries as well as those heavily dependent on oil imports are now contemplating development of alternative sources of energy and/ or increasing their reliance on renewable sources of energy. Thesis Statement: The world today is fast approaching the end of the fossil fuel era. The dwindling oil reserves and the constantly rising oil prices have forced countries worldwide to reconsider their strategies and rely on renewable sources of energy in a desperate bid to survive in a world without oil. Consequently renewable energy is now being moved from the fringe to the center-stage as a key driver for sustainable development. Hypothesis: Renewable energy helps in mitigating climate change. It accrues various environmental benefits Renewable energy contributes to the society by generating employment opportunities and encourages innovation Renewable energy has far ranging economic and political implications Definition and Meaning of key terms: Renewable energy: According to European Parliament and the Council of the European Union the term Renewable Energy refers to all renewable energy sources such as all 'reproducible non-fossil energy sources, including "solar, wind, biomass (biogas), hydropower, geothermal, wave, tidal, landfill gas, and sewage treatment plant gas" (qtd. in Andexer, 2008: 15). According to International Energy Agency, renewable energy refers to "energy that is derived from natural processes that are replenished constantly. In its various forms, it derives directly or indirectly from the sun or from heat generated deep within the earth" (Jordan-Korte, 2011: 11). Sustainable development: The term sustainable development is defined as "development that can meet the needs of the present generation without compromising the ability of future generations to meet their own needs (Rogers, Jalal, and Boyd, 2008: 42). According to the definition provided by United Nations, Brundtland Report the term sustainable development refers to "development that meets the needs of the present without compromising the ability of future generations to meet their own needs" (Baker, 2006: 20). Biomass - According to Crocker (2010: 26) "the term biomass is used to describe any material of recent biological origin and includes plant materials such as trees, grasses and agricultural crops" Fossil fuels - According to Tester (2005: 296) "A fossil fuel is a substance that releases energy by a chemical reaction". Role of renewable energy in mitigating climate change The looming energy crisis has taken the world by storm, and shaken up most of the industrialized economies, in particular, who are excessively and exclusively dependent on oil imports. However on the other hand, this turn of events has led to the increasing significance of renewable energy. The present energy sources are heavily dependent on fossil fuels. Almost 80 per cent of the world’s total consumption is attributed to oil and gas (Hodel & Deitz, 1994; World Development Report, 2010; Lane, 2006), which indicates the excessive reliance on fossil fuels. From the materials used for construction of houses to the fuel used in automobiles, almost all aspects of human activities can be inevitably traced back to some or the other form of oil and gas. According to research, fossil fuel combustion is one of the major sources of CO2 emissions leading to environmental pollution and disruption of ecological balance, ultimately triggering of global warming (IPCC, 2005; Letcher, 2008; Dawson & Spannagle, 2009). Furthermore according to a report by the Intergovernmental Panel on Climate Change (IPCC) the CO2 emission is increasing at a rapid rate and has surpassed the level recorded at the dawn of the industrial revolution (IPCC, 2003). The emissions from production and use of energy has accelerated the greenhouse effect and significantly altered the natural environment, thus negatively affecting the climate and disrupting the ecological fabric (Miller & Spoolman, 2008; Santos, 2011). These negative repercussions can be reversed by increasing reliance on renewable sources of energy. There is vast empirical evidence substantiating the various benefits of renewable energy particularly those related to mitigating climate change. The use of renewable energy is known to significantly reduce Co2 emissions and reduce the carbon footprint. According to Jacobson & Jacobson (2009) almost all sources of renewable energy which essentially replaces fossil fuel, are capable of reducing the carbon footprint and control the rate of Co2 emissions. Furthermore there is evidence which suggest that the use of renewable energy sources such as bio-fuel which is also known as ‘clean fuel’ is known to be carbon-neutral since the Co2 emitted from the combustion of such fuel is reabsorbed by growing more sugarcane thus negating the harmful gases emitted, to almost nil (Rosa & Ribeiro, 1998 qtd. in Pimentel, 2008). Sugarcane ethanol is known to significantly reduce Co2 emissions (Metz, 2008) and hence contribute to mitigating the damage caused by excessive emissions, ultimately reducing the carbon footprint successfully and effectively. The mitigating impact of sugarcane ethanol has been successfully established by the use of this renewable source of energy in Brazil where the energy balance was restored (Metz, 2008). Studies concerning the use of bio-mass in Africa; the use of hydropower projects and use of wastes in generating alternative sources of energy in Brazil; and the use of coal-fired power generation projects in South Africa have reaffirmed the key role played by renewable energy in reducing carbon footprint and mitigating climate change (Edenhofer, Pichs-Madruga, and Sokona, 2011). The use of renewable energy sources hence is one of the most viable alternatives to fossil fuels owing to the large amount of benefits provided by it, particularly with regard to restoring the damage caused to the environment and controlling climate change to a considerable extent. Economic impact and implications Industrialized countries which rely heavily on oil and gas as major sources of energy for production as well as for enhancing economic development are largely responsible for controlling the energy flows and hence are often referred to as ‘high-energy civilizations (Krausman, Schandl, and Sieferle, 2008; Smil, 2000). The per-capita energy use of countries is directly related to their economic growth. Hence the drastic rise in use of energy particularly oil and gas, by the industrialized nations and lately developing countries is a direct off-shoot of their deliberate bid to improve and accelerate their economic development (Ang, 2007; Lee and Chang, 2008). However the increased concerns regarding the negative impact of fossil fuels on the environment, along with various other factors have led various countries across the globe to shift their focus to renewable sources of energy. The use of renewable energy is known to generate economic benefits for the countries. Research suggests that the market for renewable energy sources has increased significantly over the years (Schafer, 2005; European Renewable Energy Council, 2004; Solomon & Luzadis, 2009) with countries relying on such energy sources being the market leaders for initiating change. Countries generating and relying on renewable energy have now become market leaders. This unprecedented success of such countries can be attributed to the fact that oil prices are constantly on the rise and the world is gripped in economic instability. Hence companies relying on renewable sources of energy are benefiting immensely from the trade. According to the European Renewable Energy Council (2004) the market for renewable energy is likely to increase significantly in the coming years, and the investments in clean and renewable sources of energy is expected to increase simultaneously. Many countries are now seen eagerly joining the green bandwagon in a bid to capitalize on the increasing market for renewable energy and generate economic gains, in the process. The sheer size and growth potential for the market for renewable energy and the willingness on the part of various companies to invest in the development of such alternative sources of energy is likely to result in a huge multiplier effect on the economy. Contribution of renewable energy in employment generation and innovation: The increasing popularity of renewable energy across diverse industry sectors indicates immense opportunities for innovation and development of energy markets thus resulting in creation of employment opportunities in the process. This is primarily because the development as well as deployment of innovative means of energy sources requires hiring of highly skilled human resources (Bhattacharya, 2011). The greatest benefits of renewable energy can be accrued by developing countries which are most likely to benefit economically from the trade, since the renewable sources of energy are more or less, uniformly distributed across different geographic sectors. Thus investing in projects aimed at developing alternative sources of energy or relying on renewable energy can prove to be highly economical (Markandya & Halsnaes, 2002). Renewable energies are known to contribute generously in creating new employment opportunities, new industries, and new wealth in both industrialized as well as developing countries, although t is particularly known to contribute majorly towards the development of rural areas (Smith & Taylor, 2008). According to a study conducted by UNEP (2008) renewable energy is said to have contributed as many as 2.3 million jobs have been generated worldwide due to renewable energy. Similar reports were made by the German Environment Ministry claiming significant employment generation post investment in renewable energy sources. Similar trend was observed with regard to developing countries, such as India, Nepal, Africa, and Brazil where the investment in renewable energy sources resulted in a simultaneous and drastic increase in employment (Cherian, 2009; Goldemberg et al., 2008; Walter et al., 2011). These examples indicate the immense potential of renewable energy in contributing to the socio-economic development of countries. According to GreenPeace the global drive to go green is likely to generate positive economic benefits to countries across the globe, particularly those participating in investing in development and deployment of renewable energy sources. This new trend is expected to create over 2 million jobs by the year 2020 particularly in the low-carbon transportation sector since the demand for bio-fuels is likely to increase considering the oil reserves are drying up (Kammen, 2008). Political implications: It has been effectively established through research that the oil reserves are fast depleting and we are now at the verge of the end of the fossil fuel era. It is hence imperative for countries to shift towards renewable sources of energy to retain their economic stability. There are contradictory reports in the literature pointing each negating and affirming the possibility of generating oil through sophisticated technology (Greene, Hopson, and Li., 2006; Campbell & Laherrère, 1998; Kruyt et al., 2009). However if the overwhelming evidences made available by way of research indicating the depletion of oil reserves are to be believed, it is highly apparent that energy imports are likely to dwindle in the near future, resulting in a dramatic change in power relations among the political big-wigs. Studies indicate that as opposed to fossil fuel the renewable sources of energy are distributed uniformly across the globe, regardless of the geographical makeup of countries (Edenhofer, Pichs-Madruga, Sokona, 2011). Thus, the reliance on renewable energy sources would help countries to control and effectively manage the price volatility caused by oil imports, and improve their balance of trade in the process (Grubb, Butler, and Twomey, 2006). This change in the import and export structure is likely to result in a significant change in the power relations between the nations and trigger energy security concerns in the long-run (Awerbuch, 2006; Bazilian & Roques, 2008). Benefits of renewable energy: Examples The world is now preparing for an “oil-less” era which is likely to result in drastic economic and political imbalances. According to the Royal Swedish Academy of Sciences the rapid exhaustion of fossil fuel is a cause of serious concern and it is highly likely that the shortage of oil would result in a global economic recession triggered off by exorbitantly high oil prices. In anticipation of the impending crisis, the Swedish government has decided to respond with an active plan to invest heavily in development and deployment of renewable energy sources (The Guardian, 2006). During the 1970’s Sweden was hit badly by the oil crisis. Oil accounted for almost 75 per cent of the country’s energy supply. However with consistent efforts the figure was reduced to 32 per cent by the year 2009. Sweden consumes significantly high amount of electricity per capita amounting to almost 16,000 kWh per head annually. However compared to other countries with similar consumption patterns, the carbon emissions of the country is significantly lower. This is mainly attributed to the use of hydropower and bio-fuels in generating energy (Sweden.se, 2012). This move has helped the country in grabbing the top position among the green economies, giving it an economic and political leverage. Conclusion: Evidence suggests that we are on the brink of an oil-less era and the only means for survival is through investing heavily on the renewable energy sources. The benefits of alternative sources of energy are immense and if tapped appropriately, it is likely to generate positive socio-economic opportunities. High amount of carbon emissions due to use of oil and gas, has accelerated the pace of global warming. As governments from across diverse countries grapple with the dwindling energy sources and the environmental issues there is an increased burden to include investment in renewable energy at the heart of key policy and decision making processes. The fact that renewable energy sources not only help countries in reducing their carbon footprint but also help in generating employment opportunities indicates the large scale benefits accrued by alternative energy sources. Concerns regarding the climate and oil prices are likely to escalate in the near future. It is hence imperative for countries to capitalize on the growing trend of investing in renewable energy and exploit the opportunities available to them to their advantage. References: Aguilera, R. F., Eggert, R. G., Lagos, G., Tilton, J. E., (2009). Depletion and the future availability of petroleum resources. Energy Journal, 30 (1): p. 141-174 Andexer, T., (2008). A hypothetical enhanced renewable energy utilization (EREU) model for electricity generation in Thailand. Norderstedt, Germany: GRIN Verlag Publication, p. 15 Awerbuch, S. (2006). Portfolio-based electricity generation planning: Policy implications for renewables and energy security. Mitigation and Adaptation Strategies for Global Change, 11(3): p. 693-710. Baker, S., (2006). Sustainable development. New York: Routledge Publication, p. 20 Bazilian, M., P. Nussbaumer, E. Haites, M. Levi, M. Howells, and K. Yumkella (2010). Understanding the scale of investments for universal energy access. Geopolitics of Energy, 32(10-11): p. 21-42. Bhattacharya, S. C., (2011). Energy economics: Concepts, issues, markets and governance. London, UK: Springer Publication, .p. 257-260 Campbell, C.J., and J.H. Laherrère (1998). The end of cheap oil. Scientifi c American, March 1998, p. 80-85. Cherian, A. (2009). Bridging the Divide Between Poverty Reduction and Climate Change through Sustainable and Innovative Energy Technologies. Environment and Energy Group, United Nations Development Programme, New York, NY, USA, p.55 Crocker, M., (2010). Thermochemical conversion of biomass to liquid fuels and chemicals. Royal Society of Chemistry, p. 26 Dawson, B., Spannagle, M., (2009). The complete guide to climate change. New York: Taylor & Francis Publication, p. 280-282 Edenhofer, O., Pichs-Madruga, R., Sokona, Y., et al. (2011). Renewable energy sources and climate change mitigation: Special report of the Intergovernmental Panel on Climate Change. New York: Cambridge University Press, p. 855-857 European Renewable Energy Council (2004). Renewable energy in Europe: Building markets and capacity. Brussels, Belgium: James & James Publication. Goldemberg, J., S.T. Coelho, and P. Guardabassi (2008). The sustainability of ethanol production from sugarcane. Energy Policy, 36(6): p. 2086-2097. Greene, D., J. Hopson, and J. Li (2006). Have we run out of oil yet? Oil peaking analysis from an optimist’s perspective. Energy Policy, 34(5): p. 515-531. Grubb, M., L. Butler, and P. Twomey (2006). Diversity and security in UK electricity generation: The infl uence of low-carbon objectives. Energy Policy, 34(18): p.4050-4062. Hodel, D. P., Deitz, R., (1994). Crisis in the oil patch: How America's energy industry is being destroyed and what must be done to save it. Washington, DC : Regnery Publishing Inc., p. 43-45 IPCC (2005). Carbon dioxide capture and storage: Special report of the Intergovernmental panel on climate change. New York : Cambridge University Press, p. 54-56 Kammen, D. M., (2008). Putting renewables to work: How many jobs can clean energy industry generate? DIANE Publishing. Krausmann, F., H. Schandl, and R.P. Sieferle (2008). Socio-ecological regime transitions in Austria and the United Kingdom. Ecological Economics, 65(1), p. 187-201. Kruyt, B., D.P. van Vuuren, H.J.M. de Vries, and H. Groenenberg (2009). Indicators for energy security. Energy Policy, 37(6): p. 2166-2181. Jacobson, A., Jacobson, D., (2009). Wind energy and air emission reduction benefits : A primer. DIANE Publishing, p. 15-17 Jordan-Korte, K., (2011). Government promotion of renewable energy technologies: Policy approaches and market development in Germany, the United States, and Japan. Heidelberg, Germany: Springer Publication, p. 11 Lane, J., (2006). Globalization and politics: Promises and danger. Hampshire, England: Ashgate Publishing, p. 19-21 Letcher, T., (2008). Future energy: Improved, sustainable and clean options for our planet. Oxford, UK: Elsevier Publication, p. 28-30 Markandya, A., Halsnaes, K., (2002). Climate change and sustainable development: Prospects for developing countries. London, UK: Earthscan Publication, p. 60-63 Metz, B., (2008). Development policy as a way to manage climate change risks. London, UK: Earthscan Publication, p. 227-228 Miller, T. G., Spoolman, S. E., (2008). Living in the environment: Concepts, connections, and solutions. Belmont, CA : Cengage Learning Publications, p. 499-501 Rogers, P. P., Jalal, K. F., Boyd, J. A., (2008). An introduction to sustainable development. London, UK: Earthscan Publication, p. 42 Rosa & Ribeiro qtd. in Pimentel, D., (2008). Biofuels, solar, and wind as renewable energy systems: Benefits and risks. New York: Springer Publication, p. 216-218 Santos, F. D., (2011). Humans on earth: From origins to possible futures. London, UK: Springer Publication, p.171-173 Schafer, A. (2005). Structural change in energy use. Energy Policy, 33(4), p. 429-437. Smil, V. (2000). Energy in the twentieth century: Resources, conversions, costs, uses, and consequences. Annual Review of Energy and the Environment, 25, p. 21-51. Smith, Z. A., Taylor, K. D., (2008). Renewable and alternative energy sources: A reference handbook. Santa Barbara, California: ABC- CLIO Publication, p. 63-65 Solomon, B. D., Luzadis, V. A., (2009). Renewable energy from forest resources in the United States. Madison Avenue, New York: Taylor & Francis Publication. Sorrell, S., Speirs, J., Bentley, R., Brandt, A., Miller, R., (2010). Global oil depletion: A review of the evidence. Energy Policy, 38(9): p. 5290-5295 Tester, J. W., (2005). Sustainable energy: Choosing among options. MIT Press, p. 296 UNEP (2008). Green Jobs: Towards Decent Work in a Sustainable, Low-Carbon World. United Nations Environment Programme (UNEP), Nairobi, Kenya. Walter, A., P. Dolzan, O. Quilodrán, J.G. de Oliveira, C. da Silva, F. Piacente, and A. Segerstedt (2011). Sustainability assessment of bio-ethanol production in Brazil considering land use change, GHG emissions and socio-economic aspects. Energy Policy. World Bank Development Report (2010). World Bank Development Report 2010: Development and climate change. Washington DC: World Bank Publications, p. 202-203 IPCC (2003). Third Assessment Report - Climate change [Online] Available at: http://www.ipcc.ch [Accessed: November 26, 2012] Sweden.se (2012). Energy: Generating power for a sustainable future [Online] Available at: http://www.sweden.se/eng/Home/Society/Sustainability/Facts/Energy/ [Accessed: November 27, 2012] The Guardian (2006). Sweden plans to be world's first oil-free economy [Online] Available at: http://www.guardian.co.uk/environment/2006/feb/08/frontpagenews.oilandpetrol [Accessed: November 27, 2012] Read More