The world population is increasing rapidly and is predicted to be heading to nine billion. Human dependence on energy is also increasing, yet the fossil fuels reserves commonly known as the reserve-to-production ratio (R/P), which the population is dependent on are reducing at an increasing rate (). The estimated R/P ration for the main conventional fuels are 46, 58 and 118 years for oil, natural gas, and coal respectively, according to the latest prediction by (WHO) (Dannecker, 21). This information confirms that the growing population and energy consumption makes it inevitable that the world must adopt the energy resources as fossil fuels diminish. The objective of this essay is to validate that albeit the issues raised concerning the reliability of renewables, they are beneficial and have an economic value. The main benefits include reducing the global warming (such as environmental conservation), economic gains, and increasing the social-welfare in this country and the world as a whole.
Global Warming
The major reason why there is need to adopt alternative energies are the potential they bore in reducing the global warming effects. The combustion of fossil fuels to output energy, the waste of H2O and CO2 are released. Excessive prevalence of CO is a reason for global warming and this has continued to mount. As established by Riddell et al. (n.d), the CO2 emissions is about 6.5 billion tonnes and has continually increased from 1950. Such increase is bound to dramatically increase if the world continues the emissions through the combustion of fossil fuels (Riddell et al., n.d.). As such, there is need for an alternative source of energy. For environmental conservation to prevail, it will depend on the ability of nations to adopt and implement the renewable energy supplies. The solution to such worries can be found through the use of renewable energies. The conversion of the sunlight, harness of earth’s heat, nuclear sources, and wind have a larger role in meeting the global energy demands devoid environmental degradation (Riddell et al., n.d.).
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Economic Gains
As the federal and state governments focuses on the development of renewable energy, there are predictions that the renewable energy generation will lead to an increase of 1.1% of the GDP IN 2030. This is equivalent to $1.3 trillion (Dannecker, 37). The increment in GDP is driven by the increment in the investments in renewable energy development. Such increment will trigger a wave of positive developments in the economy. In consequence, such investments will lead to production of higher rate of electricity at a low cost in the long-run. The result of such ventures is increased global trade. As demonstrated in the Irena Report, the overall trade scenario will be more intense in 2030 compared to today particularly due to the interconnection of various economies. Considering the fact that most of the renewable energies will require no fossil fuels, the increase in the share of locally available renewables by 2030 will lead to a reduced trade of fossil fuels (). Albeit the fall of fossil fuels’ dominance, the capital-intensiveness of the renewable resources will cause an increase in the demand of goods and services to facilitate their harness. Support companies to provide service for large plants will be inevitable and thus intensify the trade.
Job Creation
The investment in the renewable energy will double the employment rate compared to the current rate of job creation under similar investments in fossil fuels. In fact, a report by Bloomberg evidences the same. According to the report, the workforce on green energy rose by 5% globally in 2015 to about 8.1 million and is expected to hit around 24 million by 2030 (Hirtenstein, 2016). As further heightened by Hirtenstein, last year only the number of jobs created by renewable energy ventures such solar energy overtook those created in fossil fuels thus helping in driving the global surge in employment (Hirtenstein, 2016). The rationale for more job creation is due to the fact that renewable energy developments are labor intensive and thus requires more personnel compared to fuel resources. As also held by Adnan Amin of Irena, the surge is also due to the decline in the costs of green energy technologies as well as favorable policy frameworks (Hirtenstein, 2016). Much of such workforce will benefit the local people thus fostering the tax revenues of the states. Considering that majority of these renewable sources are dominant in rural settings, they will boost growth and development of the rural areas (Wengenmayr & Thomas, 134). Overall, the jobs created are both direct and indirect. Whereas direct jobs include those directly working in the plants and those selling spare parts, indirect jobs include all jobs that will result due to the establishment of a particular facility.
