Growing the Economy Through Renewable Energy Production

May 16, 2013

We have a lot of serious problems in the world that will be impossible to solve if the global economy isn’t strong and robust. We need to see a bigger gains in industry, technology and job creation. That’s were renewable power production comes in. Climate change and demand for cleaner energy around the world are dictating that we invest time and money on mastering resources such as solar,  wind and hydropower. In this article By Melissa Murphy, published on NationalGeographic.com she explains in theory how we can grow the economy through renewable energy production.

Growing the Economy Through Renewable Energy Production

Growing the Economy Through Renewable Energy Production

Growing the Economy Through Renewable Energy Production

Industry Development
Expanding renewable energy production can indirectly broaden the industry base in the U.S. For renewable energy production to increase, there is first an increased demand for the associated machinery, parts and expertise that go into creating energy from renewable resources. Large-scale industries that can locally produce equipment for wind and solar power collection, storage and distribution, for example, can be expected to grow with the demand for renewable energy. (See References 1 and 2) Inversely, investments made early in these peripherally related industry sectors control how quickly renewable energy develops. (See Reference 3)

Job Creation
The growth of any industry demands an increased workforce. Renewable energy production is typically more labor intensive than current fossil fuel energy, so the number of needed workers is expected to increase proportionately with the amount of renewable energy created, reports the OECD. (See Reference 4) Peripheral jobs will also be created in related sectors that develop and maintain associated systems, technology and equipment. As these sectors increase employment rates, additional disposable income at the household level will further stimulate the economy by increasing demands in entertainment, services and other sectors. (See References 1 and 4)

Strong competition in any industry is always good for consumers. The energy industry is no different. Quite simply, saving money on fuel costs puts extra money in consumers wallets. When expenses remain low compared to their income people have more money to spend on other things, or they can pay down personal debt, both of which stimulate the economy nicely.

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