Problems of Energy Use - Essay Example

Running Head: Problems of Energy Use Problems of Energy Use Are Global In Nature and Require Global Solutions of Institution] Problems of Energy Use Are Global In Nature and Require Global Solutions It is true that human beings have achieved remarkable successes in the field of technology. Man has managed to invent technological miracles like computers and robots and it has opened the horizon of communication. Thus reducing distance and time gaps and making the world a global place instead of a world which was divided into countries and further divided into cities. All this advancement in technology, modernization tends to appear magnificent and luxurious but on a more reality note advancement in technology is based on energy consumption more then it is dependent on man. Initially, coal was used as the main source of energy accounting for 80% of the global use in 1920s. With the discovery of oil reserves and natural gas the use of coal as a form of energy reduced dramatically from 80% to 30% in 1984 but the increase in energy consumption increased. It has been assumed that recorded that in the year 2000 energy usage will be ranging between 400,000 to 500, 000 petajoules with a projection that this usage would keep on increasing every year. (Andy, n.d.) Energy is used by every sector of the society, transportation in the form of trains, airplanes and cars all consume energy. While the industrial sector consumes energy in the form of electricity used by heavy machines, then there are the commercial and residential sectors that consume energy in the forms of appliance usage. Thus it can be evaluated that energy consumption is a general process but the disadvantage of increased energy consumption is the by products released. An example of which can be pollution, these byproducts have been damaging the environment. "A decade ago, it was conjecture. Now the future is unfolding before our eyes. Canada's Inuit see it in disappearing Arctic ice and permafrost. The shantytown dwellers of Latin America and Southern Asia see it in lethal storms and floods. Europeans see it in disappearing glaciers, forest fires and waves these examples disclose that the world was never as warm. The three warmest years on record have all occurred since 1998" (New scientist environment). The pace at which it is getting warmed from the past 30 years is beyond imagination. Climatologists of the (IPCC) say that this condition has occurred due to human activities and there are rising fears that the warming will increase with time. These are the effects and future prospects of the global warming. Global warming has occurred due to the increase in pollution blowing from factories and the pollution from vehicles is just a few examples. Then there are forests, the speed at which human beings are cutting trees for energy production is another issue. "Deforestation has resulted in the reduction of indigenous forests to four-fifths of their pre-agricultural area. Indigenous forests now cover 21% of the earth's land surface" (Deforestation). An example of which can be Africa who is loosing 4.0 million hectares of forests annually. Another effect of energy production is dumping wastage in seas and rivers. Humans are creating products for luxuries or protection from each other; for example, nuclear wastes are being dumped in seas and rivers. Anything human wants to dispose off and has no way to do it, the most simple, cheap and easiest way to get rid of it is discarding it into the river. Thus it can be evaluated that energy production and consumption both are the effecting the environment at a global scale. These environmental issues have reached a point were we can not close our eyes and avoid the situation as environmental effects are damaging our society so rapidly that if nothing is done to control the situation, we human beings as dinosaurs would became extinct. This is an issue which can not be blamed on anyone neither our politicians are responsible for it neither are the rich. Every one of us is responsible for the situation and hence it we all need to put our heads together and evaluates global solutions. How Economics Can Address Global Energy Problem Tools of Economic Analysis Economics is the social science that studies the production, distribution, and consumption of goods and services. Economics help in evaluating that energy use is rising as a global problem it helps in evaluating what is causing the problem what are the effects of increased energy use and what are the possible solutions "Integrated assessment can be described as an analysis methodology that combines information pertaining to economic, energy and climate variables across various scientific disciplines, time, and spatial scales. As a platform for integrating knowledge, the design of an Integrated Assessment model requires a set of tradeoffs between speed, complexity, sectoral coverage, flexibility, and ease of use. Models range from those oriented toward academic research to those developed explicitly for a policy context. Simple models are often used to explore system behavior while more complex models are aimed at representing a large number of relevant processes and interactions" (Research Programs Integrated Assessment Modeling) Through economic analysis we can design a model in which we can collect the data on the estimate of the production of byproducts we can divide our research into several subsections that include: 1. Industrial sector 2. transportation sector 3. commercial sector 4. residential sector Further on we can assess the collected data to accumulate the amount of production of dangerous by products by each of the sub sector. Which would enable us to distinguish between the sector which urgently needs to switch to renewable sources After this evaluation it would became easier for us to suggest the policies that would help in the promotion of renewable energy usage and which would even help I the reduction of energy use. Other then that through economic analysis we can evaluate the maximum cost which needs to be invested in order to achieve a solution. We ca even design a proposal through which we can raise the desired amount through funding. Policies to Curb Energy Consumption Democrats all around the globe are passing bills and imposing taxes in order to achieve some reduction in energy production and consumption specially oil. Many policies which were previously designed in order to promote energy production are reserved in hope to achieve opposite results. Governments of many countries are combating the issues of environmental damage due to energy production at individual level. Other then that many countries have formed unions and groups in order to reduce energy consumption at a more global level. Amongst the important and recent policies to Curtail energy consumption is the Energy "Policy Act of 2005 (EPACT), signed by President Bush on August 8, 2005, offers consumers and businesses federal tax credits beginning in January 2006" (US Department Of Energy). According to this policy reduction of tax dollar-for-dollar was imposed on purchasing of fuel-efficient hybrid-electric vehicles and energy-efficient appliances and products. Some consumers will also be eligible for utility or state rebates, as well as state tax incentives for energy-efficient homes, vehicles and equipment. This policy has been helpful in controlling energy use buying and driving a fuel-efficient vehicle and purchasing and installing energy-efficient appliances and products provide many benefits such as better gas mileage meaning lower gasoline costs, fewer emissions, lower energy bills, increased indoor comfort, and reduced air pollution. (US Department Of Energy) Then there is the Kyoto protocol an agreement made by several countries including India, Korea, morocco and Egypt. "December 1 through 11, 1997, more than 160 nations met in Kyoto, Japan, to negotiate binding limitations on greenhouse gases. The agenda of the protocol was to reduce gas emission of countries all around the globe. An example of which can be U.S. energy use and prices and the economy in the 2008-2012 time frame, the aim of the meeting was to reduce the emission of carbon dioxide. The Committee specified that EIA consider several cases for energy-related carbon reductions in its analysis. The blamed that U.S. economic growth, the cost and performance of energy-using technologies, and the possible construction of new nuclear power plants was producing carbon dioxide at uncontrollable pace and therefore it needs to be controlled". (Kyoto - Preface, n.d) Then there is Germany whose federal government made an agreement under the Kyoto Protocol whose target was to reduce GHG emission by 21% for the period of 2008 to 2012. this agreement was passed on 26th April 2002. even before the Kyoto Agreement Germany has had taken many steps to reduce energy consumption which include the 1996 Declaration after which emission of CO2 from industries reduced to 46.6 Mt. then their was the eco -tax which reduced CO2 emission by 2 to 3% . (Energy Policies of Iea Countries: Germany 2002 review, n.d.) Then there are the taxes imposed on global bases on U.S. petroleum production to bring domestic petroleum prices to world levels, hen there is the increment on natural gas price, conservation is stimulated by taxes on use of oil and gas in industry, restriction of oil and gas use by electric utilities, subsidies for insulation of structures and mandatory performance standards for energy using appliances. Then there are tariffs on imported oil rising to $7.00/ barrel in 2000 and the taxes increasing on natural gas. Then there is an excise tax on delivered energy sufficient to reduce total primary energy input. (Dale, 1998) Many countries have deduced the easiest way to reduce energy consumption which would even promote energy production from alternate means and that is to increase the cost. Europe has imposed additional tax on carbon, while all EU countries tax the use of mineral oil in the economy with the exception of marine and aviation bunker fuels. Then there is Germany and Italy who have imposed tax on the use of natural gas. While Austria and France have imposed tax on the use of gas and electricity on the other hand Denmark, Finland, Netherlands and Sweden have gone a step further by imposing tax on natural gas, coal and electricity use. (Duncan, 2000) "Then there is Maryland policy which is based on the increment in its existing renewable electricity standard to require that 20 percent of electricity comes from renewable sources by 2020. They have followed the US policy of using low-carbon fuel by motor cars. Reduce the growth in vehicle miles traveled. Establish an energy efficiency goal. Spending 3 percent of electric utility revenues on energy efficiency each year would reduce electricity demand by 6.5 percent in 2020. Encourage combined heat and power. Large employers should be required to develop programs to discourage single-passenger commuting and provide employees with more transportation choices to cut single-occupant vehicle commutes. "Stronger energy codes for residential and commercial buildings would reduce energy use and thus global warming pollution. Require energy-saving replacement tires. By requiring the sale of energy-saving replacement tires, Maryland can improve vehicle efficiency without negatively affecting safety" ( A Blueprint for Action) Then there is the Energy Policy Act of 2005 (EPAct 2005) signed into law on August 8, 2005. The aim of the act requires federal agencies to reduce energy intensity every year in their facilities by 2 percent per year beginning in FY 2006, up to a cumulative 20 percent reduction by the end of FY 2015. Thus it can be observed that many policies are deduced in order to reduce the production of energy. Policies to Promote Use of Renewable Energies "Renewable energy technologies tap into natural cycles and systems, turning the ever-present energy around us into usable forms. The movement of wind and water, the heat and light of the sun, heat in the ground, and the carbohydrates in plants, all are natural energy sources that can supply our needs in a sustainable way. Because they are homegrown, renewable can also increase our energy security and create local jobs". (Renewable Energy Basics Index) The other way to improve the conditions of the environment and provide the industries household and commercial areas with enough energy is alternate energy production methods many countries after getting aware of the effects of the by products on environment of the energy producing agent decided to research for alternate methods which wont be harmful for the environment and even if it is the percentage is much lover of the harmful emissions produced. There were many policies designed to promote the exploration and usage of alternate methods. Renewable energy sources (RES) gets benefited from tax exemption, tax reduction, or tax credits, countries also used subsidies to encourage the development and deployment of renewable sources. In 2004 the Flemish government passed a legislation according to which Belgian green power was exempted from distribution tariffs. Then their was tax credits and preferential loan announced in Korea for companies using alternate energy source. Then their was a lower interest rate announced on companies using alternate energy sources. Then there is the advantage of predetermined buy back rate for all electricity produced under conditions which are not harmful for environment this advantage was introduced in Australia but gradually set up in Spain under the RES. Then there is the Renewable Energy Source Act according to which generation from biomass plant will be paid for 20 years, and the rate fixed for new plants will drop b 1.5 % each year. (Thomas, 1993) Their has been the policy of reduction of carbon percentage in the fuel used by transportation. "The oil used in the U.S. transportation sector accounts for one-third of greenhouse gases emissions. According to Barack Obama's the amount of carbon should be reduced in the fuel supply used by transportation, establishing a National Low Carbon Fuel Standard. The standard would require that all transportation fuels sold in the U.S.contain 5 percent less carbon by 2015 and 10 percent less carbon by 2020. According to one estimate, Obama's legislation would reduce annual greenhouse gas emissions by about 180 million metric tons in 2020. This is the equivalent of taking over 30 million cars off the road in 2020". According to him sufficient funds should be given to investigate in the field of renewable fuels, such as corn and cellulosic ethanol, and biodiesel made from plant oils such as soybeans. (BarackObama, n.d.) Then there is Germany which tried to promote alternate methods of energy production. German federal government passed the Renewable Energies Act, according to this tax reductions and loans for investments to search for better option was provided. Then there is the market incentive programme which sanctions a grant to buy 100,000 rooftop solar electricity programs which is based on photo Voltaic and it is estimated that a reduction in CO2 by 13 to 15 Mt by 2005 would occur because of these programs. (Energy Policies of IEA Countries: Germany 2002 review) Renewable also form a part of Europe's climate change and energy policy. In March 2007, "the European Council agreed amongst other things, a binding target of a 20% share of renewable energies in overall EU consumption by 2020. This applies to transport and heat as well as electricity. The agreement also commits the EU to a binding target of reducing greenhouse gas emissions by 20% by 2020 and by 30% in the context of international action". (Meeting the Energy Challenge). The hindrances which stand in the way of complete usage of renewable energy is the cost incentive which reached around $38 million to $30 million dollars. Another problem is in the usage of biogas which harms the poor according to advocates people who once gathered dung for free may be denied access to resources if biogas plants create a market for dung. These are just few of the problems that are in the way of renewable energy sources other then that corrupt governments and the powerful that own oil ells do not want that the market is distributed which would lower oil prices and hence reduce their profit. (Thomas, 1993) Thus it can be evaluated that government is trying their best deduce policies which would help reducing the energy use. Even after the efforts of government policies investments are needed to discover new renewable sources and the money to install equipments which would switch energy production from fossil fuel and oil to other renewable sources. Conclusion It can be assumed that human beings have come a long way from the time when they used to use coal and wood o generate energy, while now energy can be generated from nuclear as well as solar powers. This development has gone through many stages during which man has developed improved and even understood the mistakes he made in order achieve a modern society. During the span of energy production especially from oil has proved to be the disastrous man has improved living standards but at the cost of pure, fresh oxygen which is essential for every human beings survival. Government, countries, states have realized the future of the world if the emission of damaging byproducts continues to flow in the environment since the 1990s. Thus from that time onwards the preparations and alterations were started to be discovered but at a very small scale. NGO and people involved in social service have tried their best to spread awareness of the importance of the issue from the mid 90s but the result appears to become prominent in the 20th century. As the issue is very serious government have tried their level best to produce policies and impose tax which would result in a reduction of energy usage and would promote the usage of alternative modes an example of which can be solar energy. Even inventers now design luxuries technological items for example cars which are suitable for the resent situation consume less fuel, CNG would support the above argument. Even appliances are designed keeping in mind that they should consume less energy. As we all know about global warming and the disasters that are waiting to occur in future, we as individuals should help ourselves. At an individual level the efforts we make might not make an impact but if every individual tries to fight this global problem we would definitely help. We can plant trees use trains or even walk for short distances instead of using personal cars. We should try not to waste electricity and water, dispose the recyclable stuff separately, and try not to use plastic bags. Hence it can be evaluated that man is powerful and can achieve a permanent solution for the problem of energy use only if the government, the transportation, the people, the industrialist and the inventers all support and work together in unity. One more thing that we the world needs to avoid is war as we don't have the money or man power to waste on increasing the emission of disastrous gases. References A Blueprint for Action: Policy Options to Reduce Maryland's Contribution to Global Warming http://www.environmentmaryland.org/uploads/z1/-h/z1-hgPc9_FQ_qqczE40y6w/blueprint-for-action.pdf Accessed, July 7, 2007 Andy Crump, (1993), Dictionary of Environment and Development: People, Places, Ideas, and Organizations, Page no 84 BarackObama, (n.d.), Energy and environment Deforestation http://www.botany.uwc.ac.za/Envfacts/facts/deforestation.htm Accessed, July 7, 2007 Dale Weldeau Jorgenson, (1998), Growth, Page no 293 Duncan Brack, Michael Grubb, Craig Windram, (2000), International Trade and Climate Change Policies, Page no 41, 42, 43 Department of Trade and Industry, (n.d), Meeting the Energy Challenge, Crown Copyright 2007 Federal Energy Reduction Requirements http://www.epa.gov/oaintrnt/energy/fedreq.htm Accessed, July 7, 2007 International Energy Agency, (2002), Energy Policies of Iea Countries: Germany 2002 review Kyoto - Preface http://www.eia.doe.gov/oiaf/kyoto/kyotorpt.html Accessed, July 7, 2007 New Scientist Environment http://environment.newscientist.com/channel/earth/climate-change/ Accessed, July 7, 2007 Renewable Energy Basics Index http://www.ucsusa.org/clean_energy/renewable_energy_basics/ Accessed, July 7, 2007 Research Programs Integrated Assessment Modeling http://www.pnl.gov/gtsp/research/assessmentmodeling.stm Accessed, July 7, 2007 Thomas B. Johansson, (1993), Renewable Energy: Sources for Fuels and Electricity, Page 10 US Department Of Energy http://www.energy.gov/taxbreaks.htm Accessed, July 7, 2007 Read More