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  • Describe the distinction between renewable and nonrenewable energy sources.
  • Explain why the inevitable conversion of energy to less useful forms makes it necessary to conserve energy resources.

Energy is an important ingredient in all phases of society. We live in a very interdependent world, and access to adequate and reliable energy resources is crucial for economic growth and for maintaining the quality of our lives. But current levels of energy consumption and production are not sustainable. About 40% of the world’s energy comes from oil, and much of that goes to transportation uses. Oil prices are dependent as much upon new (or foreseen) discoveries as they are upon political events and situations around the world. The U.S., with 4.5% of the world’s population, consumes 24% of the world’s oil production per year; 66% of that oil is imported!

Renewable and nonrenewable energy sources

The principal energy resources used in the world are shown in [link] . The fuel mix has changed over the years but now is dominated by oil, although natural gas and solar contributions are increasing. Renewable forms of energy are those sources that cannot be used up, such as water, wind, solar, and biomass. About 85% of our energy comes from nonrenewable fossil fuels    —oil, natural gas, coal. The likelihood of a link between global warming and fossil fuel use, with its production of carbon dioxide through combustion, has made, in the eyes of many scientists, a shift to non-fossil fuels of utmost importance—but it will not be easy.

A pie chart of the world’s energy consumption by source is shown. Thirty-five point four three percent is petroleum, twenty-eight point one five percent is coal, twenty-three point four six percent is dry natural gas, six point two seven percent is hydro-electricity, five point seven nine percent is nuclear electricity, point eight six percent is geothermal, wind, solar, biomass, and point zero five percent is geothermal, biomass, or solar energy not used for electricity.
World energy consumption by source, in billions of kilowatt-hours: 2006. (credit: KVDP)

The world’s growing energy needs

World energy consumption continues to rise, especially in the developing countries. (See [link] .) Global demand for energy has tripled in the past 50 years and might triple again in the next 30 years. While much of this growth will come from the rapidly booming economies of China and India, many of the developed countries, especially those in Europe, are hoping to meet their energy needs by expanding the use of renewable sources. Although presently only a small percentage, renewable energy is growing very fast, especially wind energy. For example, Germany plans to meet 20% of its electricity and 10% of its overall energy needs with renewable resources by the year 2020. (See [link] .) Energy is a key constraint in the rapid economic growth of China and India. In 2003, China surpassed Japan as the world’s second largest consumer of oil. However, over 1/3 of this is imported. Unlike most Western countries, coal dominates the commercial energy resources of China, accounting for 2/3 of its energy consumption. In 2009 China surpassed the United States as the largest generator of CO 2 size 12{"CO" rSub { size 8{2} } } {} . In India, the main energy resources are biomass (wood and dung) and coal. Half of India’s oil is imported. About 70% of India’s electricity is generated by highly polluting coal. Yet there are sizeable strides being made in renewable energy. India has a rapidly growing wind energy base, and it has the largest solar cooking program in the world.

Questions & Answers

it is the relatively stable flow of income
Chidubem Reply
what is circular flow of income
Divine Reply
branches of macroeconomics
SHEDRACK Reply
what is Flexible exchang rate?
poudel Reply
is gdp a reliable measurement of wealth
Atega Reply
introduction to econometrics
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Tom
Why is unemployment rate never zero at full employment?
Priyanka Reply
bcoz of existence of frictional unemployment in our economy.
Umashankar
what is flexible exchang rate?
poudel
due to existence of the pple with disabilities
Abdulraufu
the demand of a good rises, causing the demand for another good to fall
Rushawn Reply
is it possible to leave every good at the same level
Joseph
I don't think so. because check it, if the demand for chicken increases, people will no longer consume fish like they used to causing a fall in the demand for fish
Anuolu
is not really possible to let the value of a goods to be same at the same time.....
Salome
Suppose the inflation rate is 6%, does it mean that all the goods you purchase will cost 6% more than previous year? Provide with reasoning.
Geetha Reply
Not necessarily. To measure the inflation rate economists normally use an averaged price index of a basket of certain goods. So if you purchase goods included in the basket, you will notice that you pay 6% more, otherwise not necessarily.
Waeth
discus major problems of macroeconomics
Alii Reply
what is the problem of macroeconomics
Yoal
Economic growth Stable prices and low unemployment
Ephraim
explain inflationcause and itis degre
Miresa Reply
what is inflation
Getu
increase in general price levels
WEETO
Good day How do I calculate this question: C= 100+5yd G= 2000 T= 2000 I(planned)=200. Suppose the actual output is 3000. What is the level of planned expenditures at this level of output?
Chisomo Reply
how to calculate actual output?
Chisomo
how to calculate the equilibrium income
Beshir
Criteria for determining money supply
Thapase Reply
who we can define macroeconomics in one line
Muhammad
Aggregate demand
Mohammed
C=k100 +9y and i=k50.calculate the equilibrium level of output
Mercy Reply
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money as unit of account means what?
Kalombe
A unit of account is something that can be used to value goods and services and make calculations
Jim
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Muhammad
I want to know how can we define macroeconomics in one line
Muhammad
it must be .9 or 0.9 no Mpc is greater than 1 Y=100+.9Y+50 Y-.9Y=150 0.1Y/0.1=150/0.1 Y=1500
Kalombe
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Kalombe
hi can someone help me on this question If a negative shocks shifts the IS curve to the left, what type of policy do you suggest so as to stabilize the level of output? discuss your answer using appropriate graph.
Galge Reply
if interest rate is increased this will will reduce the level of income shifting the curve to the left ◀️
Kalombe
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Source:  OpenStax, College physics. OpenStax CNX. Jul 27, 2015 Download for free at http://legacy.cnx.org/content/col11406/1.9
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