What economic impact will clean energy have on a country?

Switching from fossil fuels to renewable energy sources could give the economy a boost. The number of renewable energy jobs worldwide is expected to expand from 12 million in 2020 to 38 million by 2030 and 43 million by 2050.

green hydrogen mission
Clean Energy (Image used for representative purposes only)

By: Ashutosh Verma, Founder of Exalta

Green energy comes from sources that can be used again and again, unlike fossil fuels, which can only be used once. People, businesses, and governments around the world are moving away from fossil fuels and towards green energy to lessen the effects of climate change and pollution. 

Solar, wind, water (hydropower, tides, and waves), biomass, and geothermal energy are all examples of renewable energy sources. Most of the time, these energy sources are better for the environment than fossil fuels, and they are always being made more, so they will never run out. 

Clean Energy’s impact on the Economy

1. Renewable energy could boost employment levels. 

Switching from fossil fuels to renewable energy sources could give the economy a boost. According to the International Renewable Energy Agency’s 2021 Renewable Energy and Employment annual assessment, the number of renewable energy jobs worldwide will expand from 12 million in 2020 to 38 million by 2030 and 43 million by 2050. 

2. Renewable energy can reduce consumer costs. 

Typically, renewable energy generation is more efficient than conventional energy production. Households that have solar panels installed and reside in areas with net metering have much lower power bills, which can be further reduced by purchasing an electric vehicle. Building a new solar or wind installation is less expensive for utilities than continuing to operate an old coal-fired power station. 

3. Renewable energy makes good commercial sense. 

Environmentalists have contended for decades that renewable energy should replace existing energy sources. It makes good commercial sense for governments and enterprises. Creating wind turbines and solar panels generates profits for businesses. Retrofitting buildings makes money for the construction industry while building mass transit and electric cars make money for the automotive industry. It costs less for utility companies to build renewable energy systems than to run fossil fuel plants that are already in place. Investing in renewable energy can have a significant effect on a government’s expenditures. 

4. Renewable energy allows universal access to energy. 

Dependence on fossil fuels messes up the energy market, which means that a lot of people can’t get electricity. Our World in Data estimates that in 2020, 13 percent of the world’s population, or 940 million people, will not have access to electricity. 2.6 billion people used traditional biomass for cooking in the same year. Cooking with biomass fuel results in approximately 4 million deaths per year due to household air pollution. Using localized solar and mini-grids, renewable energy may reach even rural, impoverished communities, albeit with some investment from governments and non-governmental organizations. 

5. Renewable energy is a moral investment option. 

Renewable energy is a good ethical investment for people who want to look for opportunities outside of the usual channels. Increasing investments create a healthy, optimistic view of the sector, which affects the creation of jobs and social cohesion that is hard to measure. 

6. Renewable energy minimizes catastrophe recovery and reconstruction expenses. 

Climate disasters like wildfires, droughts, and very strong hurricanes and blizzards cause a lot of pain and death, and governments spend a lot of money to help people recover and rebuild. When economies switch from fossil fuels to renewable energy, climate-related disasters will happen less often and be less bad. 

Coal, oil, and natural gas continue to provide most of the world’s energy needs. Unfortunately, the use of these energy sources has severe environmental consequences. In addition, fossil fuels are nonrenewable, so they will eventually run out. As their resources diminish, they will grow more expensive and difficult to remove while continuing to harm the environment. 

As a result, an increasing number of nations are abandoning nonrenewable energy sources in favor of “green energy” to offset environmental damage while boosting the economy.

Disclaimer: Views expressed are personal and do not reflect the official position or policy of Financial Express Online. Reproducing this content without permission is prohibited.

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First published on: 15-03-2023 at 17:14 IST
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