Abstracts
Date of last update
05/02/2010 06:49:40 -0700
Challenges of Sustainable Energy Policy and Recommendations: KAM V
Tony E. Hansen
Knowledge Area Module (KAM) for Walden University
A Brief Historical Context of Energy Economics and Government Intervention
Breadth Component for KAM 5
The development of energy policy over the past few decades has been upon the premise that securing resources is paramount to the national security and the economic affluence of the United States. Further, the government has employed various interventions in the energy sector claiming a state interest in regulating the sector. That intervention has varied over the administrations and the crises that affected those generations. Specifically, government has supported monopoly enterprises to help control the flow of energy and the price of energy where other industries have not seen such toleration or logic applied due to the intrinsic nature that energy plays with the whole economy. In this respect, we have to analyze theories of government intervention with respect to economic issues. With respect to overall energy issues, we have to consider the physical properties of energy supply and use. This analysis of historical context helps to understand the theories and the feasibility of the current ideas presented with respect to energy policy alternatives.
Challenges to Long Term Sustainable Energy:
Depth Component for KAM 5
Using the current trend information from the Department of Energy, International Energy Agency, and others, we can se the affect of current energy policy over the course of the years as well as the global trends that will inevitable impact the domestic markets. Given the current energy consumption and production as well as an ideal sustainable policy, our current policy risks serious economic catastrophe and that risk is recognized by academics and industry players alike. The nature of the risk and catastrophe has only partially been explored, but we need industry players to buy into plans to change energy policy due to vertical monopoly structure of energy sector. We can review the plans from Pickens and Rogers as well as implementations in Europe to help define a path for a sustainable energy policy for the United States.
There are a number of plans to achieve production goals that reduce dependence upon foreign resources from industry, and if used together, the plans have significant potential to achieve the mutual goal of sustainable energy. With rising demand and rising affluence around the world, energy demand can be expected to increase exponentially given the path of consumption in the current industrialized world where overall global demand will increase over large populations (billions) that did not have affluence before. Therefore, policy will have to consider the critical supplies that are dwindling and how they will have higher value as time progresses due to diminishing supplies for future generations (especially for transportation energy use of petroleum resources).
Recommended Strategy for Energy Policy:
Application Component for KAM 5
The energy policy has to clearly define an objective and strategy for getting to that objective in for the public to support the policy. If the objective is sustainability for current and future generations, we have to be careful with reliance upon physical mineral resources that face eventual depletion. We can use the vast resources and current production investments in more clean ways while developing sustainable long-term means as recommended by industry leaders. We can weatherize and make more buildings more efficient as well as vehicle transportation that does not depend upon petroleum supply. Taxes paid as investments for sustainable growth represent some measure of overdue expenses for the excess consumption of the recent decades, and those investments can spur an economic growth cycle that will pay long-term growth results while curbing some of the consumption habits. Market will dictate some of the ability to transition away from unsustainable energy, and thus putting a price upon wasted energy and emissions will help to curb the wasteful use of carbon-based resources. In the meantime, we can focus the investments upon building more efficient and renewable energy systems that provide for the sustainable goals. The policy makers will have to sell the policy alternatives to the public by building a better public perception of sustainable energy use and may have to reconsider the market structure as part of the policy alternative to encourage innovation in the markets. Given the limited supply of current fuels, the United States has limited time to transition to other supplies as well as to use more efficient energy habits.
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