With the development of modern industry, non-renewable resources such as coal and oil are gradually being exhausted. If we don’t find a new way out, the energy crisis will inevitably break out in the foreseeable future. In order to solve the energy crisis, people are gradually focusing on renewable energy sources such as solar and wind power, which are almost endless compared to fossil fuels with limited reserves. So, what are the economic effects of these renewable energy sources?
1. Reduce the cost of electricity
Technologies such as solar power and wind power have long been mature. Compared to generating electricity through fossil fuels, generating electricity through solar and wind power can be cheaper. Solar and wind power only requires the installation of appropriate equipment to work properly. The energy comes from the sun and the wind, which is virtually endless, with no raw material costs and only minimal maintenance costs to follow. Suffice it to say, you only need to pay for the cost of the equipment and the labor to install it in the beginning, after which you can enjoy the rewards with peace of mind.
However, if you are using fossil fuels for thermal power generation, you will need to pay for fossil fuels such as coal in addition to the initial equipment costs. The cost of purchasing fossil fuels is volatile and can change over time, seasons and regions. And this leads to the cost of electricity sometimes exceeding the imagination. Electricity converted from renewable energy sources is cheaper and more stable.
2. Creating more jobs
The renewable energy industry can provide more job opportunities than the traditional energy industry. Take solar energy as an example, with the cost of manufacturing solar panels decreasing year by year, the scale of installation of solar panels is also expanding year by year. In the U.S., even during the New Crown Epidemic, employment in solar-related jobs grew steadily by 140%.
Employment in renewable energy-related jobs is much higher than that in traditional energy-related jobs, because traditional energy sources, such as coal, they are usually concentrated in certain areas, and the related jobs are also concentrated in those areas. However, renewable energy sources such as solar and wind power are distributed all over the world, so there is no regional restriction on engaging in related occupations.
3. Renewable energy reduces the cost of protecting the environment.
Traditional energy sources such as coal pollute the environment with sulphur dioxide, nitrous oxide and other pollutants, and also produce carbon dioxide, which contributes to the greenhouse effect. Whether it is to control the environment or mitigate the greenhouse effect need to spend a lot of manpower and resources. China, for example, spends 40 billion dollars a year to combat air pollution.
In addition, the pollutants emitted also adversely affect the local climate, water and air, jeopardizing the health of local residents. Combating this pollution is costly. Although on the face of it there may not seem to be much difference between using traditional energy sources and renewable energy sources, it is better to use renewable energy sources in terms of the long-term effects of increased carbon emissions.
4. Increase the value of buildings such as houses
If you install a solar power system on your house it will add value to your house, a whole solar power system is enough to supply electricity to a family. Installing a solar power system will make your house and other buildings more valuable and easier to sell.
Conclusion
The economic benefits of renewable energy are economic, social and environmental. I believe that as the technology continues to advance, renewable energy will become a bigger part of the world’s energy mix, and at that time, it will also create greater economic value.
