For Engineering/Non-Management Students

BROAD OVERVIEW OF THE GROWING USE OF

SUSTAINABLE AND RENEWABLE ENERGY SOURCES IN THE
WORLD ECONOMY WITH DETAILED ANALYSIS OF SPECIFIC
APPLICATION.
BROAD OVERVIEW OF THE GROWING USE OF SUSTAINABLE AND
RENEWABLE ENERGY SOURCES IN THE WORLD ECONOMY WITH
DETAILED ANALYSIS OF SPECIFIC APPLICATION.

INTRODUCTION:

An efficient use of energy is the pre-condition for economic development. But excessive use of
fossil fuel harms the environment. As renewable energy emits no or low greenhouse gases, more
countries are trying to increase the use of energies from renewable sources. At the same time, no
matter developed or developing, nations have to maintain economic growth. renewable energy
does not hinder economic growth for both developing and developed countries, whereas, there is
little significance of consuming renewable energy (threshold level) on economic growth for
developed countries.

Traditional energy sources such as coal, gas, and oil are extremely beneficial to a country's
economy, but their negative effects on the environment have compelled us to use these resources
only to a certain extent, and we have shifted our focus to renewable energy resources. The
utilisation of renewable energy sources helps alleviate social, environmental, and economic
issues because these resources are regarded environmentally favourable, emitting little or little
exhaust and harmful gases such as carbon dioxide, carbon mono oxide, sulphur dioxide, and
others. Renewable energy will become a major source of power generation in the near future,
since we will be able to reuse these resources to generate usable energy again and again.

Wind power generating is thought to consume the least amount of water, emit the fewest
greenhouse gases, and have the least negative societal consequences. It is regarded as one of the
most sustainable renewable energy sources, with hydropower, solar, and geothermal following
closely after. These resources can help mitigate the greenhouse impact and global warming effect
since they are considered clean energy resources. The appropriate use of renewable energy
systems can result in local employment, improved health, job opportunities, job creation,
consumer choice, improved living standards, social bonds creation, income development,
demographic impacts, social bonds formation, and community development.

RENEWABLE ENERGY SOURCES: -

Renewable energy will become a major source of power generation in the near future, since we
will be able to reuse these resources to generate usable energy again and again. Fossil,
renewable, and nuclear energy resources are the three types of energy resources that are often
used. Hydropower, wind, solar, biomass, ocean energy, biofuels, geothermal, and other
renewable energy sources generate 15–20 percent of total global energy. Due to increased energy
demand and a rapidly growing population, the world will become a global village, resulting in
the use of fossil fuels such as coal, gas, and oil to meet energy needs, resulting in unsustainable
situations and numerous problems such as fossil fuel depletion, environmental and geographical
conflicts, greenhouse effect, global warming, and fluctuation.

Types of Renewable energy resources: -

There are a range of renewable sources that have been developed, with each offering their
own advantages and challenges depending on factors such as geographical location, requirements
for use and even the time of year.

 Solar Power
 Wind Power
 Biomass Energy
 Geothermal Energy
 Tidal Power

Renewable energy projects have also helped to improve environmental consequences such as
carbon dioxide emissions reduction and community awareness of climate change. The study
found that there were very little effects on local residents, tourism, energy costs, and educational
outcomes. Improvements in living quality, the formation of social relationships, and community
development all had significant effects. They also noted that renewable energy projects are
difficult to set up and are sensitive to local environmental and weather conditions. In comparison
to other initiatives, its forecasting, execution, and planning need greater thought and
understanding. Air and water pollution, which is often caused by discharged water from
buildings, factories, and contaminated rain, as well as the discharge of spent oils and liquids, are
the two primary components of the environment. Along with water pollution, natural resources
can be maintained and greenhouse effect and air pollution can be mitigated by the proper usage
of renewable energy sources .

ECONOMIC GROWTH ANALYSIS WITH RENEWABLE ENERGY:

While presenting economic prosperity, the G7 countries can still not guarantee environmental
well-being. In fact, using the annual frequency data from 1980 to 2016, the impact on the
environment of some variables was ascertained using panel data. The results show that financial
globalization and eco-innovation reduce the ecological footprint. On the contrary, urbanization
stimulates environmental degradation by increasing the ecological footprint values. Amri (2017),
using the dynamic simultaneous-equation panel data approach, investigated, over the period
1990–2012, the relationship between three indicators (economic growth, renewable energy, and
trade) in different income groups of countries and underlined the interdependence of these
variables. Notably, the main findings reveal a bidirectional nexus between renewable energy
consumption and GDP in all groups of nations; a persistent bidirectional relationship among
foreign trade and renewable energies in all groups of countries; finally, a bidirectional nexus
between trade and economic growth in developed, developing, and others developed countries.
In addition, a team of researchers investigated the dynamic effect of RE consumption,
biocapacity, and economic growth in the United States from 1985 to 2014. Using the ARDL
model, the authors claim that a decline in environmental degradation can attribute to an increase
in RE consumption through its negative effect on the ecological footprint.

THE PRINCIPAL WAYS TOWARDS A SUSTAINABLE ENERGY

ECONOMY:
There are three basic strategic elements supporting the necessary re-structuring of the energy
supply system:

Efficiency:

Energy is needed for certain duties such as food and materials processing, heating and cooling,
illumination, and transport. During the conversion of primary energy to such services, energy
carriers run through several stages, all of which are associated with exergy losses. These losses
can be reduced considerably by modern conversion technologies and energy management
techniques. Besides increased efficiency in energy conversion and more rational use of energy in
all equipment, the substitution of high grade energy by less valuable energy must also part of this
strategy (e.g., replacing electricity used for heating rooms by heat from cogeneration or through
improved thermal insulation).
Consistency:

Currently, fossil and nuclear energy resources are taken from beneath the surface of the earth, yet
their conversion products are disposed of in the environment. The present energy system is
‘open’. Ultimately, only ‘closed’ systems are sustainable, which provide energy without the
consumption of raw materials and always return the material to the energy cycle. Energy systems
that use relatively small amounts of the natural energy cycles driven by the sun, by gravitation,
or by geothermal heat are very close to this ideal. The materials generally employed for these
processes (like e.g., solar collectors) can be recycled to a great extent since they are not
contaminated or otherwise modified in an irreversible way; thus they are not ‘consumed’ in the
sense of fossil or nuclear energies.

Sufficiency:

Energy needs depend significantly on lifestyle and consumer habits. The scope for personal
responsibility is large, ranging from a deliberate renunciation of energy-intensive products or
exaggerated mobility to an intelligent assortment of food and transportation means. Becoming
aware that habits calling for ‘further, faster, and more’ will not be sustainable in the long run, a
change of values in the industrial countries towards ‘living better instead of having more’ would
have a considerable influence on future energy demand.

SUSTAINABLE ENERGY AND ECONOMIC GROWTH WITH SPECIFIC

APPLICATIONS:

Introducing renewable energy and economic growth is a widespread debate among researchers.
From this point of view, by executing the panel data, examined the relationship between
economic growth and biomass energy consumption for N-11 countries. According to their
research work, economic development and biomass energy consumption act together in the long
run. In addition, tried to assess the regional economic impacts of a transition to renewable energy
generation in his review article. He believes clearly that defining technologies and assessment
periods is very significant. It estimated the effects of nonrenewable and renewable energy
consumption on manufacturing and services growth. They have found that renewable energy
enhances growth in high-growth sectors, that is, the services sector in high-income economies
and the manufacturing sector in middle-income economies. investigated the causal relationship
between renewable energy, CO2 emission, and economic growth for 45 African (sub-Saharan)
countries over 57 years (1960–2017). Using the GMM-PVAR method, they have concluded that
a bidirectional causal relationship exists between economic growth and renewable energy. In
contrast, economic growth may slow down due to energy conservation in the case of the rest four
nations. Another estimation suggested that non-renewable energy consumption has a significant
and positive impact on economic activities and development across a large number of
Organization for Economic Co-operation and Development (OECD) countries. A review of
hybrid renewable energy systems (HRES) in developing countries has been conducted. They
believe Asian developing countries perform better than African nations for renewable and non-
renewable mini-grids maintenance and productivity. They also believe that, in general, the costs
of mini-grids will continue to decline, making renewable sources even more competitive at the
utility scale. Some researchers also tried to find the opposite relationship between economic
growth (barriers) and renewable energy development.

For thousands of years, mankind relied exclusively on renewable sources of energy, even though
at a very low level and with low efficiency. Compared with our ancestors, we now have
technologies which will allow us to utilize renewable energies at the same high level as presently
fossil and nuclear sources. If such technologies are applied on a large scale and if the
possibilities existing for reducing costs are exploited, then the associated costs will be affordable,
as well. Moreover, costs must always be judged in relation to the environmental and social
quality of the services provided, while also considering the external costs and damages that
would result from a possible adherence to fossil and nuclear energy systems. Based on these
considerations, one must come to the conclusion that renewable energies fulfil all essential
requirements for a future sustainable energy supply system.
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