Environmental Engineering Reference
In-Depth Information
apply to the perceived danger of economic loss in mining communities when
coal-ired power plants are replaced by wind power systems. Given the global
nature of natural resource markets, such perceptions typically lack substance;
but nevertheless, the concerns are valid in the eyes of the people that hold
such perceptions. In public policy, rectifying misperceptions can easily be as
diicult as responding to actual problems associated with change.
10.4.6 Economic Factor 6: National Industry Composition
Research indicates that there are at least two ways that industry composi-
tion inluences the prospects of wind power development. First, in nations
where conventional energy resources are extensive or downstream energy
businesses have proliferated, there tends to be heightened resistance to tran-
sitioning away from conventional energy technologies because of the poten-
tial risk to industries involved in the conventional energy supply chain.
A second way that industry composition can inluence the prospects of
wind power development relates to energy intensity. Some nations exhibit
higher industrial energy usage proiles than others. As a result, there is an
elevated concern that higher energy costs will undermine national competi-
tiveness. In nations such as Japan, where industry associations possess con-
siderable political clout, these concerns can translate to political pressures
to avoid change.
he general lesson is that energy-intensive irms will be particularly sensi-
tive to transitioning into wind power. Such mega manufacturing entities typ-
ically also possess substantial inancial might, which translates into political
inluence. herefore, policymakers that hope to facilitate high levels of wind
power capacity development need to consult early and often with industry
groups to try to allay concerns over unsubstantiated economic threats stem-
ming from a structural change to electricity provision and begin to craft solu-
tions to minimize real threats associated with such a transition.
10.4.7 Economic Factor 7: Economic Growth Rate
Research indicates that there is a strong correlation between economic
growth and electricity demand.
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A nation with a high economic growth
rate will likely be faced with the challenge of expanding its electricity sup-
ply. his can be advantageous to wind power development irms. When an
electricity network needs to be expanded, it provides ampliied opportuni-
ties for wind power development. On the other hand, the need to expand
