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Isabel Moran

Professor Lisa Tyler

1201 English Composition

25 October 2020

Literature Review

Renewable energy is an unlimited source of energy that is not depleted when used it can

consist of wind, solar, bioenergy, geothermal, and ocean energy. Many want to completely shift

over from fossil fuels to these advancing forms of energy. However, there are multiple factors

that need to be considered when debating the switch, including if there is a combination of both

energies that will produce maximum efficiency, or is a full switch required. The question is then

placed, how does renewable energy impact society, economy, and the environment? There are

positive and negative factors in each category to contemplate, but many are interested in what are

the true effects of the rapidly expanding industry of renewable energy.

The industry of renewable energy is quickly advancing and has recently expanded in the

last twenty years. In the past there has not been much talk about new energy sources, but as

global warming increases, the need to change the use of fossil fuels arose. People are becoming

more cautious of the impact that humans have on the environment, therefore wanting to

minimize pollution. Although there are many people who genuinely just want to take care of the

environment, people are investing in renewable resources for the economic benefit. “Global

investments in renewable energy has doubled since 2001 and is estimated at $38 billion in 2005.”

(Flavin and Sawin). The economic investments are increasing dramatically just from 2001 to

2005, now twenty years later the profits are substantial. As technology advances improve the

renewable energy industry it continues to expand and develop.

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The biggest impact that renewable energy has on society is the health benefits for the

community. “The air and water pollution emitted by coal and natural gas plants is linked to

breathing problems, neurological damage, heart attacks, and cancer.” (Thompson) . Fossil fuels

can cause serious health damages to individuals that renewable energy sources do not. By

switching over to a renewable energy society there is a decrease in premature mortalities and

reduces healthcare costs. People are then able to spend less on the damage they receive from

fossil fuels like, water poisoning and respiratory issues, otherwise the amount spent on health

impacts of fossil fuels are between $361.7 and $886.5 billion. Overall, there are many positive

benefits that arise from using fewer fossil fuels for society’s health.

Next is to consider the impact economically that renewable energy has on firms and the

individual. Hulshof and Mulder have gone into depth research involving the corporate social

responsibility (CSR) process and profit- maximization process to determine the true effect that

using renewable energy has on a company. CSR literature proposes that there is a positive

correlation between higher profits when using renewable energy in production. Companies can

separate themselves from other producers and charge higher prices when using renewable

energy, to exemplify that the company is doing good for the environment, therefore the product

is better. However, when determining profit-maximization there is no true impact that using

renewable energy has on profit. The company will not benefit or sacrifice profit when using

renewable energy instead of fossil fuels. Therefore, companies will not actually switch to the

environmentally friendly production process based off the corporate social responsibilities that

consist. A firm will only switch when there is a profit incentive, or a government requirement.

However, for individuals and the economy overall there are many benefits, and even a few

negatives. Most of the time fossil fuels are created through machinery and do not require

enormous amounts of human labor for production. This is different when using renewable energy
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the Union of Concerned Scientists states, “it found that such policy would create more than three

times as many jobs as producing an equivalent amount of electricity from fossil

fuels.”(Thompson). With more jobs being provided there is then more income for more

individuals, which creates for more spending in the economy. Overall, the individual benefits

from a greater income, and the economy benefits from more jobs and a greater amount of money

circulation.

Most importantly is the impact that renewable energy has on the environment. Carbon

dioxide and other harmful gasses are released into the atmosphere from human activity, which

then comes back to the surface causing heat to be held in and increases the heat causing climate

change. Right now, harmful gasses are at its highest point ever and it is leading to changes in the

environment. By using renewable energy there would be no pollution, and no harmful glasses

would be released. In fact, “global warming emissions from electricity production could be

reduced by approximately 81 percent.” (Thompson). By using fewer fossil fuels there would be

minimal climate change, meaning that the environment could stay intact, and plants, animals,

and humans would not suffer from fluctuating climate. There is also a limited amount of fossil

fuels. Gas and oil will eventually run out as humans are using them at a rapid pace, which will

enforce a change to be done in how daily life runs. Renewable energy, like wind and solar is

unlimited, it will never run out, and gives a solution to the population’s problem of fossil fuels.

The biggest dispute about using renewable energy is for some the environmental benefit

does not outweigh the cost. If the government were to implement a switch to using renewable

energy it will cause high taxes for everyone. Author Benson thinks that there will be a minimal

change in the environment if there is a switch away from fossil fuels. For a switch to change

there would need to be an increment in renewable technology, like windmills and solar panels.

While an addition of these advancements will cost money to build, it will also create more jobs
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to build them, which cancels out the negative price. There are also many complaints that land

will be taken to put these wind farms somewhere. However, there will be a large property tax

revenue for local communities, and landowners will get paid for the renting out of the land.

There is a disadvantage at the beginning of the switch since the payment comes all at once to

build the technology, over time more money will be made and less money will need to be spent

on obtaining the energy source, since it is unlimited and free.

The large misconception that occurs about renewable energy is it not efficient enough

and the technology is not capable yet. However, there is an abundance of wind and solar power.

Since, they are unlimited they will never run out, “The solar energy striking the surface of the

earth each day is sufficient to meet the world’s electricity needs for an entire year.” (Flavin and

Sawin). There are also plenty of roofs available to put solar panels on to produce and store the

solar power. It will take a while for there to be an overall switch to get rid of fossil fuels however

it will just take time. There are technological advances available to meet the demands needed to

fulfill the world’s energy needs to survive. The only thing that is truly stopping the transition to

renewable energy is an effective plan, Langwith uses the quote, “One of the greatest myths

surrounding clean energy is that it is not ready to do the job. Renewables are ready- the technical

barriers are almost entirely removed. The true barriers to energy reform are now, and always

have been, political.” (Langwith).

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Works Cited

Benson, Timothy. “Clean Energy Standard: Environmentally Worthless, Economically

Punitive.” Investors Business Daily, 28 Oct. 2016, p. 10. EBSCOhost,

search.ebscohost.com/login.aspx?direct=true&db=bth&AN=119172356&site=eds-live.

Accessed 13 October 2020.

Flavin, Chris, and Janet Sawin. "Renewable Energy Sources Can Meet America's Energy

Demands." Energy Alternatives, edited by David Haugen and Susan Musser, Greenhaven

Press, 2010. Opposing Viewpoints. Gale In Context: Opposing Viewpoints,

https://link.gale.com/apps/doc/EJ3010220275/OVIC?u=dayt30401&sid=OVIC&xid=68f

f7917. Accessed 13 October 2020.

Hulshof, Daan, and Machiel Mulder. “The Impact of Renewable Energy Use on Firm Profit.”

Energy Economics, vol. 92, Oct. 2020. EBSCOhost, doi:10.1016/j.eneco.2020.104957.

Accessed 13 October 2020.

Langwith, Jacqueline. “Renewable Energy Is Beneficial for the Environment." Renewable

Energy, Greenhaven Press, 2009. Opposing Viewpoints. Gale In Context: Opposing

Viewpoints,

https://link.gale.com/apps/doc/EJ3010573216/OVIC?u=dayt30401&sid=OVIC&xid=45d

2a645. Accessed 13 Oct. 2020.

Thompson, Tamara. "Renewable Energy Sources Benefit Health, Climate, and the Economy."

What Is the Impact of Green Practices?, , Greenhaven Press, 2016. At Issue. Gale In

Context: Opposing Viewpoints,

https://link.gale.com/apps/doc/EJ3010970212/OVIC?u=dayt30401&sid=OVIC&xid=5e9

e7158. Accessed 13 Oct. 2020.

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