Environmental Engineering Reference
In-Depth Information
countries will be at a strategic disadvantage if they must continue to pay
higher prices for electricity produced by fossil fuel sources.
1.5.2 Economic Security Considerations
Volatile electricity costs are of particular concern in developing countries.
his is because developing countries are frequently characterized by both
low per capita rates of saving and low levels of government iscal resil-
ience.
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Consequently, unanticipated increases in the cost of a resource, that
is as important to social and economic activity as energy is, can signiicantly
inluence the economic well-being of irms and citizens. Clearly, anything
that can be done by policymakers in developing countries to encourage price
stability should be done.
Alternative energy technology represents an avenue for enhancing electric-
ity price stability. As demonstrated earlier, fossil fuel prices have luctuated
considerably while inching higher over the past few years and are expected to
surge higher in the decades to come.
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On the other hand, the costs of many
alternative sources of energy have been declining consistently over the past
decade. he only degree of volatility that exists for many alternative energy
technologies lies in uncertainty over the timing and the degree to which costs
will decline.
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In short, renewable energy represents an opportunity to inject a
degree of cost stability into a nation's energy mix.
1.5.3 Economic Empowerment
he technological diversity of alternative energy options allows policymak-
ers in developing nations to target and support technologies which mesh
most efectively with existing economic infrastructure and national com-
petencies. Governments in developing nations that attempt to fast-track
economic development by importing advanced technology often experi-
ence suboptimal results, because existing economic and social infrastruc-
tures fail to support the technology.
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Development experts Todaro and
Smith contend that a more efective national economic development strat-
egy is to identify strategies to encourage the development of forward and
backward linkages associated with existing industries.
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In the alternative
energy industry there are biofuel options that can be integrated with agri-
cultural activities, there are solar options that can provide electricity to
areas where electricity grid infrastructure is insuicient, and there are bio-
mass energy options that can add value to industries that produce biomass
