Chapter 10 Flashcards
What are the 4 forces that influence the energy sector?
(M.Ec.Ti.G.)
- Markets.
- Technological Innovations.
- Environmental Concerns.
- Governments.
The Demand (2) & Supply (3) on the short term.
Demand:
- Economic cycles.
- Climate variations.
Supply:
- Geopolitical stress.
- OPEC and distribution monopolies.
- Disruptions due to climate.
The Demand (7) & Supply (3) on the long term.
Demand:
- Economic growth.
- Population growth.
- Industrialization.
- Energy efficiency of production and goods.
- Durable goods.
- Trend towards a service-based economy.
- Recycling.
Supply:
- Exploration.
- Efficiency/Extraction.
- Recycling.
What is the leading energy source in the world?
Oil
What are side effects of the usage of energy for development? (2).
- Limited access to reliable and cheap electricity impairs investment and productivity.
(Productivity decline). - Effect of “dirty” energy on health and the environment.
(Climate change).
Which continent has the largest energy demand?
Asia
What is the positive effect of exporting oil and natural gas?
Helps economic development by funding infrastructures, education, institutions and health.
What are the negative effects of exporting oil and natural gas? (3).
(C.R.I.)
- Corruption.
- Rise of authoritarian governments.
- Inflation (Dutch Disease).
What are potential solutions to repair negative effects of exporting oil and natural gas? (4).
(D.T.R.R.)
- Democracy.
- Transparency.
- Rule of law & good governance.
- Rainy-day fund.
What are policies to secure access to energy? (4).
(M.A.S.P.)
- Military and economic cooperation with producers.
- Acquisition of foreign energy firms.
- Strategic alliances (exploration and exploitation).
- Privatization and liberalization of energy market.
How can governments control for industrial policy goals? (2).
Key Prefix: (Sub & Re)
- Subsidies certain sectors of the economy.
(Hydro-Quebec & the aluminum industry). - Reinvest the revenues in public infrastructure.
Is being energy independent equal to geopolitical power?
No, on the contrary, it is shown that the provider of natural resources are normally in poor economic shape or in turmoil with powerful nations.
Who is the world proved oil reserves of the world?
Venezuela
Globalization and Environment.
There is economic development and growth through industrialization and the spread of urbanization.
However, industrialization leads to polluting energy consumption, deforestation, and over production and consumption by companies and consumers.
Top 5 countries with the highest pollution.
- China
- India
- USA
- Bangladesh
- Pakistan
What can governments and businesses do? (3).
(T&S / P / L&E)
- Tax credits and subsidies for investment in clean energy technologies.
- Promote sustainable consumption.
- Combating environmental degradation with legal (permits, regulations, taxes, sanctions, and laws) and ethical obligations.
What are some solutions brought by international cooperation to combat negative externalities? (3).
- International agreements on emissions regulation.
- Financial and technical assistance to poor countries that implements clean energy technologies.
- Fund quality studies of the environment on a world scale.
Who is the country with the highest number of solar pannel?
China
What are some of the current obstacles, challenges, and responsibilities? (8).
(N.P.C.C.S.S.B.G.)
- Cost of fossil fuels.
- Subsidies around the world on fossil fuels.
- Not enough public investment in low-carbon energy research.
- Carbon taxes.
- Provision for backup and storage capacity.
- Sustainable development is linked with harmful effects of industrialization and urbanization in the developing world.
- Businesses tend to wait for changes in the law, rather than take voluntary measures.
- Governments must balance priorities of reducing poverty, and retain a focus on economic growth.
Global subsidies for fossil fuels.
Various nations in the developing world have cut fuel subsidies due in part to rising debt and borrowing costs, while wealthier nations, where energy consumption is higher, face less financial pressure to cut subsidy costs.
What are environmental degradation and climate change linked too? (3).
(Ha.I.U.)
- Human activity.
- Industrialization.
- Urbanization.
What is the Paris Accord?
Lowering global warming in order to reduce the 2 degree mark to 1.5 degree.
How do businesses respond to climate change initiatives? (4).
Key Words: (View. Join. Only way. Government.)
- They generally view climate change initiatives in a negative light, as adversely affecting them.
- Many businesses join forces to against climate change measures.
- Laws and regulations are the only way businesses comply.
- Government incentives and funding are seen by businesses as essential to help fund R&D into green technology.
