Environmental Engineering Reference
In-Depth Information
in comparison to fossil fuel technologies, alternative technologies such
as wind and solar employ well over double the number of people on a per
kilowatt hour basis. In a 2009 study, Rutovitz and Atherton found that a
transition to clean fuel would result in an increase in the number of people
employed in the energy sector by 2 million in 2020 and 2.7 million in 2030
(compared to business-as-usual).
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Moreover, evidence from countries such
as Germany, Denmark, and Spain indicates that alternative energy tech-
nologies encourage the proliferation of high value-added small businesses,
which manufacture component parts and provide support services to alter-
native energy facilities.
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It is ironic how reluctant many leaders of industrialized nations have
been to provide leadership in facilitating a transition away from fossil fuel
dependence, given the increased threats that fossil fuel reliance poses to
economic well-being and national security. Islamic extremism; unrest in the
Middle East; the rise of nationalism in countries such as Russia, Venezuela,
and Iran; global warming; the international drug trade; and global inan-
cial instability all have roots stemming from this global addiction to fossil
fuel energy.
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he often heard laments espoused by leaders of industrial-
ized countries that moving away from fossil fuel energy will increase the
cost of doing business for domestic irms and impinge upon economic
growth prospects is a false belief predicated on a misperception that fossil
fuel energy technology is actually cheaper than other forms of energy. As
outlined earlier, even excluding external costs, wind energy, for example, is
now cost competitive with fossil fuels (see Figure 1.8). Including external
costs, fossil fuel energy is economically inferior to any alternative energy
form (Table 1.2).
1.5 ENERGY MARKET CHANGE AND DEVELOPING NATIONS
Unsurprisingly, strategic energy mix planning also has extensive economic,
security, and social repercussions in developing countries.
1.5.1 Economic Considerations
For irms from developing nations that compete in international markets,
a key competitive advantage is the ability to tap into a cost base that is sig-
niicantly lower than that found in industrialized nations.
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Accordingly, if
the energy trends outlined earlier continue and alternative energy becomes
less expensive than fossil fuel energy, exporting irms from developing
