Has the classic economy lost its relevance to the energy market and therefore whether the process of necessary proecological reforms in the energy sector involving the replacement of energy sources, ie classic energy sources based on burning minerals for renewable energy sources should be coordinated by the state as a pro-environmental interventionist anti-crisis state?
Still at the end of the 21th century, in many publications written in the convention of classical economics, theses were formulated that energy should be shaped by the mechanism of market-harmonizing sides of demand and supply. However, this philosophy concerned classic energy based on the combustion of minerals. Mineral energy deposits in certain parts of the world are determined for several decades of extraction.
If the development of mining technology allows to reach and extract energy from deeper deposits than currently exploited and decks located under the sea and ocean bottoms, such estimated deposits would allow mining of these deposits in some places of the world for much longer than 100 years. However, humanity can not wait so much for pro-ecological reforms in the energy sector and the slow process of switching to renewable energy sources, which is happening in some countries, including the largest economies in the world, the largest emitters of greenhouse gases.
Currently, the philosophy of the energy sector is starting to change. Now the obvious issue is the need to quickly implement pro-ecological reforms without contemplating the depleted energy resources of the Earth's crust. This wait could take about 100 years or more than 100 years in many countries and this is too long, because at the end of the 21st century, according to climate change analysis, drastic climatic catastrophes will occur due to the predicted acceleration of the global warming process in the following decades.
According to the published and presented results of climatologists' research during the recent UN Climate Summits and Conferences on the problem of progressing global warming process, unless by 2030 at the latest the world will not show the classic energy based on the burning of minerals for renewable energy sources and motorization for electromobility and there will be no appropriate improvement of segregation waste and recycling, by the end of the 21st century, the average temperature at the Earth's surface will increase by 3-4 degrees Celsius globally, and the scale of climate cataclysms and weather anomalies will increase many times in relation to the current state.
In view of the above, the world can no longer wait for the depletion of energy minerals. This issue, which is particularly important for humanity and life on Earth, can not be left to the market mechanism and classical economy, whose philosophy has long been undermined, already in the period of the Great Depression of 1929-1934 it was demonstrated that Keynsovian state interventionism is needed to bring the economy out of the deep economic crisis if the liberalized private sector led to a crisis and the economy quickly does not return itself to balance and high economic growth on the basis of self-acting market mechanisms.
We currently have a similar situation. The world inevitably aims at increasing climatic cataclysms caused by the accelerating global warming process. these unfavorable processes for humanity and life on Earth will become a source of intensification of migration of people from subtropical areas, on which it will be impossible to live and live in a few dozen years due to high temperatures and droughts. In addition, there will be economic crises resulting from the global warming process. Humanity has no time to put off the necessary pro-ecological reforms for the future, these pro-ecological reforms in the energy sector need to be implemented now and it should be a process coordinated by the state in the context of pro-environmental anti-crisis state interference.
Do you agree with my opinion on this matter?
In view of the above, I am asking you the following question:
Has the classic economy lost its relevance to the energy market and therefore whether the process of necessary proecological reforms in the energy sector involving the replacement of energy sources, ie classic energy sources based on burning minerals for renewable energy sources should be coordinated by the state as a pro-environmental interventionist anti-crisis state?
Please reply
I invite you to the discussion
Thank you very much
Best wishes
It is precisely because of the importance of the problem you are highlighting, its indirect effects, the need to take into account the long term, that the "classic economy" has all its importance.
These difficulties have already been encountered by humanity, perhaps with less importance, perhaps only in a localised way, and it is important not to forget the work of "classic economists" conducted in these circumstances. The fundamentals of their work remain the same.
So there are many works already published on the transition from non-renewable to renewable; on the end of non-renewable energy or certain natural resources; on the role of public authorities in coordinating this transition as well.
Ask the question differently. Has the energy market failed to be able to finance capital intensive non fossil fuel projects? How can storage be financed? Our problem is that there is no good mechanism to finance large scale projects moving us off fossil fuels. This is why our optimized economic studies are not being realized in practice. For instance Jesse Jenkins at MIT shows nuclear to be economic even when very costly but the markets cannot support its development. Markets can't even support the financing of storage. Even adding a CO2 tax does not cause a 199% fossil fuel free system to be realized. I pointed this out to Jim Hansen but he didnt have anything better than the fee and dividend. We have studied CO2 taxes and all they do is result in a slight decrease in CO2 emissions. Basically humans have not yet invented the perfect way to finance our fossil fuel free future.
Excellent and topical question.
Energy market are concerned with, among others, the analysis and financing of renewable (wind power, water-hydro, water-wave, solar, geothermal, hydrogen, biomass from plants, conversion of agricultural commodities into bio-ethanol), and non-renewable (fossil fuels such as oil, gas and coal) energy sources.
The by-products from energy markets, such as pricing carbon emissions, depend on supply and demand, and taxes levied by governments.
These are standard aspects of the classic economy, but with a modern flavour.
Dear Friends and Colleagues of RG
In the coming years, humanity should carry out pro-ecological reforms of the classic energy based on the burning of minerals by converting it into environmentally friendly energy based on renewable energy sources. It should be possible to allocate as much as possible to this environmentally-friendly transformation of the energy industry because what will be realized in this matter over the next dozen or so years depends on the pace of the progressive and accelerating process of greenhouse gas emissions and global warming. Ecological innovations developed primarily in the field of new technologies of renewable energy sources are helpful in the process of proecological energy transformation.
Thanks to ecological innovations, the scope and possibilities of implementing sustainable ecological development are increasing. In connection with the progressing global warming process, it is necessary to develop eco-innovations in the field of renewable energy development, improvement of sorting techniques, recycling, electromobility, organic farming, plastic reduction from packaging and conversion of plastics to biodegradable materials, etc.
In this way, through the development of eco-innovations and their implementation on an industrial scale, it is possible to implement a sustainable pro-ecological economic development in modern economies. This is a key challenge for humanity in the 21st century. It is a challenge to the necessary and possibly quick implementation in the coming years.
Best wishes
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