Renewable Energy Possible Implications - 3265 Words

Name Professor Class April 19, 2015 Renewable Energy: possible implications to economic development Within the global economy where we are living today, energy consumption and energy requirements have increased tremendously in large part due to industrial and agricultural activities; this is especially the case within emerging countries as well as developed ones. According to Kazar and Kazar constant advances in technology in combination with the population growth have led to higher levels of consumption which in turn has brought about the problem of energy requirements and increased energy consumption (1). The old ways of relying on energy from fossil fuels is running thin because not only are fossil fuel resources becoming scarce but†¦show more content†¦This link between renewable energy and sustainable development is also shown in the initiatives that are taken by world institutions such as United Nations Development Programme (UNDP), the World Bank and the Organization for Economic Cooperation and Develop ment (OECD). All of these world organizations provide financial support to any project that is aimed to produce any form of renewable energy as well as aimed at improving the quality of life by lowering the consumption of energy that comes from fossil fuels. Recently, the Organization for Economic Cooperation and Development (OECD) has published a report whereby it suggests that renewable energy has an impact on economic growth and furthermore it highlights ways on how to utilize renewable energy to positively affect rural development (OECD). The causal relationship between economic development and energy consumption stems from the first study introduced by Kraft and Kraft in the year of 1978. This particular study that was more based on the US economy ended up with findings that suggested that economic development caused higher energy consumption. However, later on a study conducted by Yu and Choi in the year 1985 expanded upon the study initially undertaken by Kraft and Kraft and came to the conclusion that the causal relationship between economic development and energy consumption derived different results for various countries. Afterwards, various other studies were undertaken to examine whether high use of