Can clean energy replace fossil fuels and what are the economic impacts of renewable energy?
Yes, clean energy has the potential to replace fossil fuels. According to the World Economic Forum, studies show that renewable energy sources like wind, solar, and hydropower could replace fossil fuels by 2050. However, this transition would require significant initial costs and full support from policymakers, investors, and other relevant organizations. For these reasons and other technical and financial considerations, perhaps fossil fuels will remain part of the energy mix in several countries in 2050.
The economic impacts of renewable energy are quite positive. According to IRENA, doubling the share of renewables in the energy mix by 2030 could increase global GDP by up to 1.1% and improve welfare by up to 3.7%. This transition would also create significant employment opportunities across various sectors, such as construction and manufacturing. According to IRENA, it’s estimated that over 24 million jobs could be supported in the renewable energy sector. Therefore, while the transition to renewable energy requires substantial investments, it leads to long-term savings and positively affects global Gross Domestic Product (GDP), according to UNDP.
Renewable can effectively replace fossil fuels, creating crucial environmental, social and economic benefits. Eliminating fuel costs lowers the cost of the electricity produced. It also means the price of electricity isn't susceptible to changes in the price of fuels, like it is with natural gas or coal. This may lead to more stable energy prices over the long term. Electricity from renewable energy sources produces between 90-99% less greenhouse gases (GHGs) compared with coal-fired plants and causes 70-90% less pollution. Clean energy provides a variety of environmental and economic benefits, including a reduction in air pollution. A diverse clean energy supply also reduces the dependence on imported fuels. Global economic losses from fossil fuel air pollution at $2.9 trillion each year, or approximately 3.3 percent of global GDP. In the United States alone, air pollution from burning fossil fuels is linked to an estimated 230,000 deaths and $600 billion in economic losses annually. There is no path to protecting the climate without dramatically changing how we produce and use electricity: nearly 40% of US CO2 pollution comes from power plants burning fossil fuels. But we can turn things around. Renewable energy minimizes carbon pollution and has a much lower impact on our environment. Renewable energy sources like solar and wind are intermittent and depend on weather conditions, which makes them less reliable than fossil fuels. Renewable energy sources like solar and wind have grown rapidly in recent years, but they still only account for around 11% of global energy consumption. Renewable energy in the future is predicted that by 2024, solar capacity in the world will grow by 600 gigawatts (GW), almost double the installed total electricity capacity of Japan. Overall, renewable electricity is predicted to grow by 1 200 GW by 2024, the equivalent of the total electricity capacity of the US. Energy is a critical component of a country's economic development. It is widely utilized in agricultural and allied fields such as the manufacturing and delivery of fertilizers, insecticides, and farm machinery. It is necessary for homes for cooking, lighting, and warmth.Energy makes people's lives easier. Hence, their productivity also increases. Increase in energy generation and supply not only accelerates economic growth but also improves the living standards of people. Renewable energy often displaces conventional fuels in four areas: electricity generation, hot water/space heating, transportation, and rural (off-grid) energy services.
- Badges
- Science topic