Economic Effects of Renewable Energy Technologies

Abstract

Rapid economic development has resulted in the more frequent use of renewable energy technologies. On the other hand, the production and use of renewables fosters the development of new technologies, creating many new opportunities for entrepreneurial-minded individuals and, consequently, the economy in general. Renewable energy technologies have a multiplier effect in spurring the economy and the development of not only the energy sector but also all the supporting activities related to such industry. The purpose of this research is to analyse both the positive and the negative economic effects of investing in various renewable technologies, as well as to confirm, by means of the energy-economy model, the benefit of such technologies in boosting the economy.

Advantages and Disadvantages of Renewable Energy Sources Utilization

“…Activities related to the maintenance of power plant operations comprise the third and the last phase of the life cycle. For example, some of these activities include management and maintenance of a wind power plant; the collection, supply and logistics of work of a biomass power plant; and other activities related to the normal functioning of renewable energy power plants (Maradin et al, 2017). The impact of the three aforementioned life cycle phases of renewable energy technology on the previously mentioned elements of employment is shown in Table 1.…”

“…The adverse economic effect in this phase is temporary employment, because once the plant is built or dismantled, there is no more need for such specialized workforce. On the other hand, the management and maintenance of renewable energy power plants does not require much workforce, particularly in the case of the wind power industry (Maradin et al, 2017).…”

“…Although the quantity of employment in this phase is of mid-level complexity, the quality of employment is very high, because many technical and technological achievements and improvements are applied; research and development influence the innovation. The substantial benefit of this phase is permanent employment (Maradin et al, 2017).…”

“…On the other hand, Liu (2017) explored the influence of renewable energy policy in China and strategy for its development. Maradin et al (2017) analysed positive and negative economic effects of renewable energy technologies. They have shown that renewable energy technologies have a multiplier effect in stimulating the economy and the development of not only the energy sector but also all the supporting activities related to such industry.…”

Australia’s green energy development strategy

“…The literature both scientific and journalist on the green energy transformation in the world and in Australia is extensive. But majorly, this literature lacks a critical approach -it states that green energy is beneficial for any country (Singh et al 2019;Maradin et al 2017). The basis for this article lies in the critique of this position, expressed in (Sun et al 2019).…”