Economic activity and energy Flashcards
Cycle of poverty
A self-perpetuating pattern of poverty and deprivation that passes from one generation to the next. It is perpetuated by poor educational opportunities and a low income
De-industrialisation
The process whereby the importance of manufacturing in the economy declines
Disposable income
Income that is left after taxes and social security charges have been deducted. Income that can be spent or saved as a household or person wishes
Economic sector
A major division of the economy based on the type of economic activity. The economies of all countries are made up of 3 sectors, most HICs have 4
Globalisation
A primarily economic process, increasing the integration of national markets for goods and services into a single global economy of market
Global shift
The movement of manufacturing from HICs to cheaper production locations in LICs
High-tech industry
Economic activities that rely on advanced scientific research and produces new, innovative and technologically advanced products, such as microchips, new medical drugs and new materials
Industrialisation
The process by which an economy is changed from a primarily agricultural one to one based on the manufacturing of goods
Informal employment
Types of work that are not officially recognised and are taken up by people working for themselves on the streets of LIC cities
Outsourcing
A practice used by some companies to obtain goods or services by contract from an outside supplier, rather than providing those goods or services themselves
Overpopulation
When the population of an area cannot be adequately supported by available resources
Primary sector
Working with natural resources e.g. fishing, agriculture, mining and quarrying
Secondary sector
Processing things such as food or minerals, making things by manufacturing, assembling or building
Tertiary sector
Providing services and enabling goods to be traded. This includes services that are commercial, professional, social, entertainment and personal. Public and private transport are also included in this sector
Quaternary sector
Economic activities that provide highly skilled services concerned with information and communications (ICTs) and research and development (R&D). Universities are an important part of this sector.
Primary sector Clark-Fisher model
- Pre-industrial is labour intensive
- Mechanisation in the industrial period reduces the need for labour
- The decline in sector continues post-industrialisation, especially with increasing food imports and further technological advances
Secondary sector Clark-Fisher model
- People forced out of the primary sector found jobs in the secondary sector
- The peak was during the industrial period where manufacturing was at its height
- Steady decline of people working in manufacturing during post-industrial period due to technological advances
- Many jobs in this sector are moved abroad due to cheaper labour
Tertiary sector Clark-Fisher model
- Steadily increasing since pre-industrial period
- More and more people required to sell the increasing number of goods produced
- Recent fluctuations due to technological advances but customer care is desired
Quaternary sector Clark-Fisher model
- Growth only begins to occur in post-industrial societies
- High levels of technology and skill involved require significant investment
- Growth in this sector can further decline employment in other sectors due to rapid technological advances
Newly Industrialised Countries
- Rapid increase in manufacturing due to Foreign Direct Investment from TNCs taking advantage of low wages and government incentives
- Declining employment in the primary sector due to mechanisation
- When NICs becomes advanced enough a quaternary sector will begin to emerge
HICs
- Post-industrial societies
- The majority of people work in the tertiary sector due to increasing incomes
- A growing quaternary sector due to investment and skill
- Declining manufacturing due to TNCs manufacturing abroad for cheaper labour etc. and technological advancements reduce the need for workers
The number of people employed in each sector are also dependent on a number of influencing factors such as…
- Availability of raw materials
- Globalisation
- Mechanisation
- Demographic changes
- Government policies
The multiplier effect
Explains why the tertiary sector grows as a country develops. As more people earn more money and are paid better, they have more money to spend on basic requirements. After they’ve bought the basics, people have disposable income. This means the demand for service increases and the tertiary sector grow, therefore more jobs are created and more people are paid better and the cycles continues
Why is the urban fringe a popular destination for several different industries?
- Cheap land
- Room for expansion
- Plenty of car parking space
- Attractive environment with little pollution
- Workers and work available nearby
- Good accessibility
What are two ways of measuring the importance of each sector?
- Percentage of total workforce employed in the sector
- Contribution to overall economic output - percentage of GDP or GNI
Production chains
A sequence of stages in which companies exploit resources, transform them into goods and distribute them to consumers. It is a pathway along which goods travel from producers to consumers
Sector shift
A change in the relative importance of an economy’s sectors
TransNational Company
A large company operating in several countries and often in a variety of economic activities
Underemployment
A situation in which a person seeking full-time employment can only find part-time jobs
MINT countries
An acronym referring to four NICs: Mexico, Indonesia, Nigeria and Turkey that are expected to see high levels of economic development and sector shifts
Agricultural employment in Nigeria
Steadily declining due to mechanisation and competition from other sectors offering better working conditions and pay
Disparities within Nigeria
Gender inequality, urban areas generally earn more than rural areas due to higher literacy levels
What could stop Nigeria’s economic growth
- Inadequate infrastructure
- Obstacles to investment
- Tariff and non-tariff barriers to trade
What could aid Nigeria’s economic growth?
- Mechanisation
- Oil
- Finance
- Real estate
Impacts of oil extraction and remixing by TNCs in Nigeria
- Provides jobs
- Charities
- Invested money
- Pay tax
- Uses local companies
- Pollutes environment
- Human rights abuse
- Long working hours
- Poor working conditions
- Profits to HICs’ HQs
Reasons for sector shift in the UK
- Globalisation
- Government policies
- Deindustrialisation
- The growth of service industries
- Finance
Negative impact of sector shift in the UK
- Decline of manufacturing led to unemployment
- Deindustrialisation impacted the factory reliant communities
Government policies in the UK
- Privatisation
- The closure of factories and coal pits in the 1980s due to the inability to compete with foreign countries where wages were lower
- Taxes kept low in 1990s increasing disposable income and generating multiplier effect
Reasons for deindustrialisation in the UK
- Global shift
- Mechanisation
Growth of UK service industries
UK also exports services e.g. tourism and education. People travel to the UK for these and money generated counts towards UK exports
Positives of UK sector shifts
- Multiplier effect
- Greater innovation on sustainability
- More money invested in infrastructure
- Better education
- Higher house prices
Negatives of UK sector shifts
- Unemployment
- North-South income divide
- Depopulation of rural areas resulting in shop closures
- Lower house prices
Why are informal economies prevalent in LICs?
- Rural to urban migration
- Unskilled illiterate workers
- Increasing wealth creating a demand for services
- Desire to break the poverty cycle by boosting incomes
Positives of the informal economy in Mumbai, India
- Provides income
- Disposable income can be used to educate children
- Non-regulated therefore lower costs
- Not taxed so greater profit
- Workers don’t want to be regulated
- Accessible to migrants unable to find formal employment
Negatives of the informal economy in Mumbai, India
- Poor working conditions
- Higher tax burden for formal economy
- Undermine law and governance
- Lack of competitiveness and growth in formal economy
- Lack of protection when refused payment
- Compulsory overtime or extra shifts
- Sackings without notice or compensation
- Absence of social benefits such as sick pay, pensions and health insurance
Underpopulation
Resources exceed population numbers (rarely) so surplus food and water are wasted. Societal systems such as schools and hospitals won’t have enough demand to run at a sustainable level so the cost per capita increases
Boserup theory
Growth in population stimulates an improvement in productions and technological advances resolve problems
Malthus theory
Population growth occurs faster than food/resource supply, eventually resulting in a preventative check or Malthusian catastrophe
Energy gap
The difference between energy demand and supply
Energy security
The ability of a country to meet all of its energy needs reliably, preferably within its own borders
Energy mix
The different types of energy that make up the supply of a country. It is best to have a varied mixed so that a country isn’t over-reliant on one source in case there is a problem with supply
Energy production
Amount of energy produced by each source
Primary energy source
Fuels that provide energy without undergoing any conversion process e.g. coal, natural gas and fuelwood
Secondary energy source
Made from processing primary fuels e.g. electricity, petrol and coke
Non-renewable energy resources
Once used they cannot be replaced e.g. fossil fuels
Renewable energy resources
Energy that is natural replenished on a short timescale that can be used again and again e.g. solar and wind
Factors which influence energy consumption and production
- Time of day
- Time of year
- Wealth/development levels
- Population growth
- Technological advances
- Availability/value
- Conflict
- Geopolitical tensions
- Economic prosperity or crisis
- Global crisis
- Natural disasters
Carbon footprint calculation
The amount of carbon dioxide equivalent that is released into the atmosphere as a result of the activities of a particular individual, organisation or community
Ecological footprint calculation
The impact of a person or community in the environment, expressed as the amount of land required to sustain their uses of natural resources (including waste) as a global hectare (GHa). Demand divided by supply
Ecological creditor
Footprint < biocapacity therefore sustainable
Ecological debtor
Footprint > biocapacity therefore unsustainable
Sustainable energy management through education
Informing people and businesses on how best to use energy
Sustainable energy manage through efficiency
Ensuring that energy sources are used in an effective manner so there is little wastage
Sustainable energy management through conservation
Preserving energy sources, largely through efficiency and prevention of use
Positives of biomass energy
- It makes sense to use waste materials where we can
- Fuel tends to be cheap
- Less demand on fossil fuels
Negatives of biomass energy
- Collecting or growing the fuel in sufficient quantities can be difficult
- We burn biofuel so it still makes GHGs
- Some waste materials aren’t available all year round
Positives of shale gas fracking
Efficient and cost effective
Negatives of shale gas fracking
- Contamination of water sources
- Lots of water, sand and chemicals used
- Causes earthquakes
- Releases GHGs
- Large energy consumption
- Drill holes quickly exhausted, so more needed
Positives of nuclear power
- Cost effective
- No GHGs
- Energy dense
- Reliable
Negatives of nuclear power
- Dangerous
- Waste products must be sealed away for years
- While sealed must be safe from earthquakes, flooding and terrorists
- High cost of safety
Positives of solar power
- Free
- No GHGs
- No waste
- Can be used in remote locations
- Good for low-power stand-alone appliances
Negatives of solar power
- Doesn’t work without the sun
- Expensive to build
Positives of fossil fuel power
- Cheap
- Easy to transport
- Efficient
- Can be built almost anywhere
Negatives of fossil fuel power
- Finite supply
- Produces GHGs
- Mining can be dangerous
- Potential for highly polluting accidents
Positives of wind energy
- Free
- No waste
- No GHGs
- Little land usage
- Can be used in remote locations
Negatives of wind energy
- Unreliable
- Cost of land
- NIMBYism
- Can kill birds
Positives of Hydro-Electric Power
- Free
- No waste
- No pollution
- Water can be stored to vary supply to match demand
- Can increase to full power quickly
- Constant generation
Negatives of Hydro-Electric Power
- Dams are expensive to build
- Flooding of areas upstream of dams
- Few suitable locations
- Environmental impacts affect downstream too
Positives of geothermal power
- No GHGs
- Small land use
- Infinite
- Free
Negatives of geothermal power
- Few suitable sites
- Sites can become inactive
- Hazardous gases and minerals can be released
Sustainable energy efficiency in China
Passive houses
Sustainable energy conservation in China
Pushes towards green transport
Sustainability education in China
- Focused on business leaders and government authorities
- Violations punishable by law
- Failure to meet targets affects performance assessments
- Awareness created through advertising campaigns
- People encouraged to limit heating and cooling within a specific range
UK’s sustainable energy policy
- Legislation, taxation, carbon taxes, financial incentives
- Education and responsibilities
Sustainable energy legislation in the UK
- All coal fired power stations to be shut down
- Investment into renewables
- Net zero by 2050
- Electricity suppliers required to meet a proportion of supply by renewable sources with costs being paid by the customer (green levy)
Sustainable energy taxation in the UK
High pollution tax
Sustainable energy financial incentives in the UK
Encourage energy-saving improvements to reduce energy bills
Sustainable energy education and responsibilities in the UK
Smart meters in homes
