One of the major aspects of energy economy is the efficient utilization and proper development of energy sources available in the world. The optimal production and consumption of energy is at the core of an efficient energy economy. The important aspects of energy economy are – environmental concerns, industry behavior and public regulatory policies pertaining to energy.
Energy remains a key factor in the functioning of economies around the world. Hence the global energy economy has a huge influence on governments and the economic policies undertaken by them. From electricity to transportation, energy is major factor in almost all industrial initiatives of an economy. The cost of energy resources are a major determinant of price levels in an economy. The increasing demand of energy in the world would lead to price rise in all sectors of the global economy. Companies utilizing alternative energy sources are helping to create a more sustainable energy economy.
Major initiatives have been undertaken to build up a sustainable energy economy across the globe. TSEC (Towards a Sustainable Energy Economy) have initiated programs to this end. Some of these are –
Addressing the major issues in nuclear fission power.
UKREC (UK Energy Research Centre) – energy research in UK and international collaboration.
Research on systems approach for carbon management and renewables.
Managing the challenges of a sustainable energy economy.
The program – “Towards a Sustainable Energy Economy” received a funding of £28m. This fund was shared by the three research councils EPSRC, ESRC and NERC.
In recent years, building up a clean energy economy has been a major focus area. The objective of clean energy economy is to tackle the environmental issues related to the production and consumption of energy. In the United States, studies have showed that investing in clean energy would lead to creation of more jobs in the country. In Iowa, 52,000 manufacturing jobs were created by the proper utilization of wind energy. Transition to a clean energy economy requires proper regulatory measures on the part of the governments of different countries.
Some of the major initiatives that need to be taken to build up a clean energy economy are –
- Controlling greenhouse gas pollution. Greenhouse gas pollution should be reduced by 15% by the year 2020 and by 80% by the years 2050.
- New treaties related to climate and environment concerns should be introduced among different countries in the world.
- Creation of a fund for new energy economy.
- Meeting the demand for electricity through efficient use and distribution rather than by producing more electricity.
World Energy Scenario
World Oil Balance
World Crude Oil Prices
Concept of Fuel Economy
Coal Consumption, production and reserves
Consumption, production and reserves of Natural Gas
Renewable energy economy
Center for Energy and Economic Development
American council for energy efficient economy
Importance of Energy Economy for Developing Nations