Comparison between Australian and Chinese Power Relation with Reference to Renewable Energy Growth - Case Study Example

Analytical Report and Essay Name: Class: Instructor: School, City: Date of submission: Part one: Report Introduction Power relations determine numerous economic activities that take place within the national economic boundaries. Therefore, it is a wise decision for a sensitive organization or business to assess the kind of environment that the government, amidst the legal framework, creates in the renewable energy sector. Ideally, paramount decisions are incorporated when indulging heavy investments into such fields, and any miscalculations may lead to unintended business drawbacks. The levels in which the power relations impact the renewable sector differ from one country to the other. For instance, some governments come up with accommodative policies and entities that will assist it to facilitate the growth of the sector (Dalton, 2004). Alternatively, other governments will not give any economic, policy-oriented, or even financial support to the sector, hence discouraging investment. Ideally, this report discusses how power relations influence the growth-rate of the renewable energy sector in China and Australia. Then, it will offer a proposed solution as to which option a potential investor in the renewable energy sector would choose and the reason behind the choice. Issues for Consideration Comparison between Australian and Chinese power relation with reference to renewable energy growth Ideally, Australian and China are among the countries whose energy industry has registered the highest level of development. Literal stamen used to refer to these countries is that they are superpowers in the energy industry. Ideally, both governments have come up with stringent rules and regulations which they deem essential in boosting the renewable energy industry from each of the countries. First the Australian government, according to the Annual report of the year 2012/ 2013 came up with an agency that would facilitate the developments of the renewable energy in the country. The Agency, ARENA (Australian Renewable energy Agency) is expected to support the renewable sector in the Australian boundaries extensively (Dopita, 2010). The government of Australian, through the already formed Australian renewable energy agency merged most of the programs that the country had developed previously initiated such as Australian Solar institute. That is; the government has considered launching of strong bodies that would support the renewable energy sector. Preferably, these programs are not cantered on the interests of the publicly initiated investments into the sector. However, they are also considerate about the privately injected programs that can substantially support the sector to sustain developments (Cherni, 2007). Additionally, the government of Australia, together with another subsidiary and non-governmental organizations has created a very promising policy structure that can be of hefty importance. This is the reason the government has incorporated ARENA (Australian Renewable Energy Agency) to offer long-term leadership. In addition, it will offer chances to both private and publicly oriented investors the chance to enter the sector and combine efforts to increase energy production. The government, through its inflicted powers through the legislature and executive, has shown utmost intentions to boost the sector in the midst of the outstanding renewable energy technology that Australia has. Similarly, China’s legislative and executive bodies are working on a similar program as the Australian government. The country, china, has witnessed myriad challenges in the energy sector, thereby influencing shortage of energy in china (Goffman, 2011). The government has essentially shown interest in supporting the renewable energy production sector. First, it has come up with legal supportive laws, policies and regulations that intend to foster a boost in the generation of energy via the renewable energy means. Relevancy in these policies shows the feasibility of these policies being made. Primarily, the government has also encouraged and improved the rate the renewable energy is being produced in China. For instance, continued manufacture of renewable energy. Contrast between Australian and Chinese power relation with reference to renewable energy growth However, the impending constraints are affiliated to the mode of governance that china gives in comparison to Australia. Ideally, the government of Australia is accommodative to extensive investment. That is; the policies that are outlined in the Australian renewable energy plans, for example, the 2007 plan, shows that it is feasible for adjustments and flexibility to existing in the country. Alternatively, the Chinese government is not that flexible. First, the rule of law provides that the Chinese government is a one party kind of government. Therefore, the level of communism is very high. Ideally, this communism is expected to affect the process in which investment get accepted. Ideally, china has room for investment but intensive international investment has occurred in the region as compared to Australia. Therefore, there is a margin vis-à-vis the rate at which both countries intends to embrace prompt investments in the renewable energy sector. Options for Expansion Expanding Investment into the Australian renewable energy system Investing in Australian is one of the options that an investor has. Ideally, there is awareness by the legal authorities that the need for renewable energy exists beyond reasonable doubt. Benefits The country’s legal system is supportive toward the renewable energy system There is a high profile form of freedom of investment The existence of the ARENA body which seems to manage the sector effectively High level of freedom by any potential investor to incorporate its entity into the renewable energy program in the country, as provided by the government. Risks There is a possibility that the investment is affected by relationships with other external parties inside the government Expanding Investment into the Chinese renewable energy system Expanding investments into china is also another option that ought to be evaluated. However, it has its merits and demerits. Benefits The Chinese population is very high; therefore, the demand for output is expected to be very high Renewable energy is highly appreciated in China. Hence, it is feasible for any investment affiliated to the sector to work out effectively Risks The Government of China has some stringent rules and regulations that deter intensive investments, especially if the investor does not have ample capacity to convince and work under its strict supervision There is a very high level of competition from the companies that have already invested in the country. The number of NGOs affiliated with renewable energy may feasibly discourage external investment with the aim of sustaining domestic investments. Recommendation If possible, the best option to expand depends on the benefits and investment constraints accrued to the business. Therefore, expanding in Australian is better, especially for a small firm. Part two: Analytical essay At times, investment decisions are complex and hard to make. The dimensions and the options available for one to choose could be highly competitive. One perfect example is the situation where one has to expand investments in Australia and china. A small investor requires ought to understand that there is dire need for the target country of expansion to show signs of full support for foreign investments at small scale. These are some of the parameters that the power relations imply during an analysis session. Ideally, power relations in this context try to reflect the imbalance that exists between the investor and the state governments and non-governmental organizations (Yuan et.al, 2008). Ideally, each of the countries that the investor is given to choosing between has different structures that are deemed to support new investments in the renewable energy sector. Each of the organization that is developed to monitor a certain sector is delegated under certain legislative requirements. That is; they operate primarily with regards to the already stipulated regulation in the country’s constitution. That is; whether the organization is deemed to be independents or not, the policies that it operates in depend on the general ISOO provisions. Both china and Australian are technology gurus. Statistical inference indicates that there are approximately more than a million Australian home units that are installed with solar power system. Similarly, there are millions of homesteads in the Chinese community that appreciates the use of renewable energy (Dalton, 2004). This means that both countries are possible destinations for investment and growth of the sector. However, there are factors that cannot be overlooked by an investor concerning the kind of governance and the operational environment that it may acquire from the host country. One of the benefits that each of the subject countries in the report, china and Australia, has is that the demand for the service and products that the investor intends to offer is readily available. The governance of any country matters a lot with regards to the manner it treats international investors. For instance, China is well known for its legal provisions that fail to harbour some of the willing and able international investors. First, china is one communist state which is governed by absolute authority and order. This operational environment initiates an environment that is not accommodative for the business in question (Dalton, 2004). First, the Chinese government displays very strict labour laws that discourage most of the investors. The labourers have very high privileges and edges from which they can sue and deflect from authority offered by external investors. That means that investing in china does not the firm a mandate to rule over the employees according to ones will and intention. First, the government itself does not allow any international investor into the country to have full authority over the employees. For a small entity, it becomes complex for it to expand its operations. Most probably, the Non-government organizations are reputed their unending efforts to support the well-about of the domestically initiated organizations (Jacobsson, 2007). In china, there are numerous non-governmental organizations whose objectives are to control the manner in which external investors dominate the market. An example of these Non-Government Organizations in China includes Global Village, Green Home and Friends of nature. The level of competition in a certain target market discourages investment. For instance, the level of competition that gets created by the Non-Governmental organizations in China is elevated by the power inflicted to them by the government. Ideally, it is therefore hand for one fell comfortable when extending his or her services towards a market that will not support its objectives to thrive (Dalton, 2004). For instance, the policies that get created in the Chinese trade system and renewable energy sector are numerous. It is, therefore, not advisable for any small firm negotiating its intentions to elevate the investment and dash into such a market. Alternatively, the presence of well-organized organizations created to manage a specific sector, under the legal delegation plan, always work out to economies without social constraints. For instance, the case of Australia avails the presence of the governmentally initiated agency, the ARENA (Australian Renewable Energy agency). This entity serves the right purpose of transforming the country’s face in terms of the renewable energy. Some of the policies that the organizations and agencies that man certain sectors have reflect the feasibility for a willing investor to survive (Effendi, 2012). A perfect example is the ARENA who role is to boost the Australian renewable energy programs and technology developments that can facilitate the development of the entire sector. Therefore, it is not provided that the agency has any mandate to encourage upcoming investors of the same of smaller calibre. Conclusively, power relations differ from state to state. According to the analysis, there are policies that formulate the power relations which can either encourage or discourage business investment (Effendi, 2012). Ideally, both the political framework and the social perspective of the power relations context extend different impressions towards willing and able investors (Wüstenhagen, 2007). This creates a benchmark where one has to choose whether the investment destination. Ideally, many aspects such as the willingness of the market to consumer service a firm may offer. In addition, the technological framework of the state may be very intriguing that investment is not hard to commence. However, the policies that follow the investment decision matter a lot to the future of an entity. Ideally, this is one of the reasons Australia would be a preferable destination for the subject small firm than the economic superpower, China. References ARENA Annual Report 2012-13 | Australian Renewable Energy Agency. (2013). Retrieved from http://arena.gov.au/about-arena/corporate-publications/annual-report-2012-13/ Cherni, J. A., & Kentish, J. (2007). Renewable energy policy and electricity market reforms in China. Energy Policy, 35(7), 3616-3629. China and the environment: The East is grey | The Economist. (2013, August 10). Retrieved from http://www.economist.com/news/briefing/21583245-china-worlds-worst-polluter-largest-investor-green-energy-its-rise-will-have Dalton, G. J., Lockington, D. A., & Baldock, T. E. (2007). A survey of tourist operator attitudes to renewable energy supply in Queensland, Australia. Renewable Energy, 32(4), 567-586. Dopita, M. (2010). Australia’s renewable energy future. Retrieved from https://www.science.org.au/sites/default/files/user-content/ausrenewableenergyfuture.pdf Effendi, P., & Courvisanos, J. (2012). Political aspects of innovation: Examining renewable energy in Australia. Renewable Energy, 38(1), 245-252. Goffman, E. (2011, May). China's Surge in Renewable Energy ProQuest Discovery Guides. Retrieved September 28, 2014, from http://www.csa.com/discoveryguides/renewable/abstracts-f.php Jacobsson, S., & Bergek, A. (2004). Transforming the energy sector: the evolution of technological systems in renewable energy technology. Industrial and corporate change, 13(5), 815-849. Wüstenhagen, R., Wolsink, M., & Bürer, M. J. (2007). Social acceptance of renewable energy innovation: An introduction to the concept. Energy policy,35(5), 2683-2691. Yuan, J. H., Kang, J. 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