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The economic and environmental benefits of a renewable energy industry in developing economies Travis Roach Economics, College of Arts & Sciences, Honors College Mentor – Michael Nieswiadomy, Economics
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Abstract Developing economies are faced with a multitude of challenges on their path toward growth. In the past, economic growth and trade liberalization have been coupled with environmental depredation. This is not the case when a developing economy uses clean energy production as a means to wealth production and increased environmental standards. Energy that is created using sustainable technologies can and will reduce pollution, increase health standards, provide jobs, and aid the growing demand for energy worldwide. In this paper, Nepal is used as a case study for the potential benefits of a renewable industry. Developing economies are faced with a multitude of challenges on their path toward growth. In the past, economic growth and trade liberalization have been coupled with environmental depredation. This is not the case when a developing economy uses clean energy production as a means to wealth production and increased environmental standards. Energy that is created using sustainable technologies can and will reduce pollution, increase health standards, provide jobs, and aid the growing demand for energy worldwide. In this paper, Nepal is used as a case study for the potential benefits of a renewable industry.
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Relevance Shopping bags v. Donations Shopping bags v. Donations Darwin – “As man advances in civilisation … he ought to extend his social instincts and sympathies to all the members of the same nation, though personally unknown to him” Darwin – “As man advances in civilisation … he ought to extend his social instincts and sympathies to all the members of the same nation, though personally unknown to him”
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Developing Economies Disease and healthcare Disease and healthcare Unsafe drinking water Unsafe drinking water Pollution Pollution Indoor pollution Indoor pollution Energy supply Energy supply Per capita income vs. life expectancy Per capita income vs. life expectancy Per capita income vs. life expectancy Per capita income vs. life expectancy
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Growth v. Environment Past view of capitalism Past view of capitalism Our dirty history Our dirty history Environmental Kuznets curve Environmental Kuznets curve
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Environmental Kuznets Curve
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Sustainable Development “Sustainable development means a restructuring of global and national economies in such a way as to gain increased economic wellbeing – including employment - while reducing the impact on the worlds ecosystems and natural resources” (Jacobs, McEvoy 2000).
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Sustainable Development Zero-sum game turned into a Zero-sum game turned into a Win-win scenario Win-win scenario The benefits of renewable energy The benefits of renewable energy
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Renewable Energy Benefits Job creation Job creation Energy – to power health centers Energy – to power health centers - provide indoor light - schools, businesses, streets Infrastructure Infrastructure Indoor pollution is mitigated Indoor pollution is mitigated
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The EKC revisited
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Electricity The life line of a developing economy The life line of a developing economy Electicity use vs. Life expectancy Electicity use vs. Life expectancy Electicity use vs. Life expectancy Electicity use vs. Life expectancy
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Nepal The story so far The story so far Future growth Future growth Electricity consumption by sector Electricity consumption by sector Biomass use Biomass use Possibilities Possibilities
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Energy use in Nepal Energy Consumption by Sector Years HouseholdCommercialOther 1993/9492.47.50.1 1994/9591.18.80.1 1995/9690.39.50.2 1996/9789.99.90.2 1997/9889.010.70.3 1998/9988.711.00.3 1999/0086.113.50.4 2000/0185.813.80.4 2001/0285.314.20.5 2002/0387.412.10.5
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Biomass use
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Future Possibilities Hydroelectricity Hydroelectricity –Uses countries natural resources –Low-head systems do no displace people or depreciate land use –Can be used as irrigation systems
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Thank you to: Michael Nieswiadomy PhD, Mentor Michael Nieswiadomy PhD, Mentor Andrea Kirk, Ph.D., Lecturer, Honors College Andrea Kirk, Ph.D., Lecturer, Honors College Susan Eve, Ph.D., Associate Dean of the Honors College Susan Eve, Ph.D., Associate Dean of the Honors College Gloria Cox, Ph.D., Dean of the Honors College Gloria Cox, Ph.D., Dean of the Honors College Warren Burggren, Ph.D., Dean of the College of Arts and Sciences Warren Burggren, Ph.D., Dean of the College of Arts and Sciences Wendy Wilkins, Ph.D., Provost and V.P. of Academic Affairs Wendy Wilkins, Ph.D., Provost and V.P. of Academic Affairs Gretchen Bataille, Ph.D., President of the University of North Texas Gretchen Bataille, Ph.D., President of the University of North Texas
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