The economic and The economic and environmental benefits of a environmental benefits of a renewable energy industry in renewable energy industry in developing economiesdeveloping economies

Travis RoachTravis Roach

Economics, College of Arts & Sciences, Economics, College of Arts & Sciences, Honors CollegeHonors College

Mentor – Michael Nieswiadomy, Mentor – Michael Nieswiadomy, EconomicsEconomics

AbstractAbstract

• Developing economies are faced with a multitude of Developing economies are faced with a multitude of challenges on their path toward growth. In the past, challenges on their path toward growth. In the past, economic growth and trade liberalization have been economic growth and trade liberalization have been coupled with environmental depredation. This is not coupled with environmental depredation. This is not the case when a developing economy uses clean the case when a developing economy uses clean energy production as a means to wealth production energy production as a means to wealth production and increased environmental standards. Energy that and increased environmental standards. Energy that is created using sustainable technologies can and is created using sustainable technologies can and will reduce pollution, increase health standards, will reduce pollution, increase health standards, provide jobs, and aid the growing demand for energy provide jobs, and aid the growing demand for energy worldwide. In this paper, Nepal is used as a case worldwide. In this paper, Nepal is used as a case study for the potential benefits of a renewable study for the potential benefits of a renewable industry.industry.

RelevanceRelevance

• Shopping bags v. DonationsShopping bags v. Donations

• Darwin – “As man advances in Darwin – “As man advances in civilisation … he ought to extend his civilisation … he ought to extend his social instincts and sympathies to all social instincts and sympathies to all the members of the same nation, the members of the same nation, though personally unknown to him” though personally unknown to him”

Developing EconomiesDeveloping Economies

• Disease and healthcareDisease and healthcare

• Unsafe drinking waterUnsafe drinking water

• PollutionPollution

• Indoor pollutionIndoor pollution

• Energy supplyEnergy supply

• Per capita income vs. life expectancyPer capita income vs. life expectancy

Growth v. EnvironmentGrowth v. Environment

• Past view of capitalismPast view of capitalism

• Our dirty historyOur dirty history

• Environmental Kuznets curveEnvironmental Kuznets curve

Environmental Kuznets Environmental Kuznets CurveCurve

Sustainable DevelopmentSustainable Development

““Sustainable development means a Sustainable development means a restructuring of global and national restructuring of global and national economies in such a way as to gain economies in such a way as to gain increased economic wellbeing – increased economic wellbeing – including employment - while including employment - while reducing the impact on the worlds reducing the impact on the worlds ecosystems and natural resources” ecosystems and natural resources” (Jacobs, McEvoy 2000). (Jacobs, McEvoy 2000).

Sustainable DevelopmentSustainable Development

• Zero-sum game turned into a Zero-sum game turned into a

• Win-win scenarioWin-win scenario

• The benefits of renewable energyThe benefits of renewable energy

Renewable Energy BenefitsRenewable Energy Benefits

• Job creationJob creation

• Energy – to power health centersEnergy – to power health centers

- provide indoor light- provide indoor light

- schools, businesses, - schools, businesses, streetsstreets

• InfrastructureInfrastructure

• Indoor pollution is mitigatedIndoor pollution is mitigated

The EKC revisitedThe EKC revisited

ElectricityElectricity

• The life line of a developing economyThe life line of a developing economy

• Electicity use vs. Life expectancyElecticity use vs. Life expectancy

NepalNepal

• The story so farThe story so far

• Future growthFuture growth

• Electricity consumption by sectorElectricity consumption by sector

• Biomass useBiomass use

• PossibilitiesPossibilities

Energy use in NepalEnergy use in Nepal

Energy Consumption by Sector   

Years Household Commercial Other

1993/94 92.4 7.5 0.1

1994/95 91.1 8.8 0.1

1995/96 90.3 9.5 0.2

1996/97 89.9 9.9 0.2

1997/98 89.0 10.7 0.3

1998/99 88.7 11.0 0.3

1999/00 86.1 13.5 0.4

2000/01 85.8 13.8 0.4

2001/02 85.3 14.2 0.5

2002/03 87.4 12.1 0.5

Biomass useBiomass use

Biomass as % of total energy

80

82

84

86

88

90

92

94

96

1990 1995 2000 2001 2002 2003 2004 2005

% o

f to

tal

ener

gy

Future PossibilitiesFuture Possibilities

• HydroelectricityHydroelectricity– Uses countries natural resourcesUses countries natural resources– Low-head systems do no displace Low-head systems do no displace

people or depreciate land usepeople or depreciate land use– Can be used as irrigation systemsCan be used as irrigation systems

Thank you to:Thank you to:

• Michael Nieswiadomy PhD, MentorMichael Nieswiadomy PhD, Mentor

• Andrea Kirk, Ph.D., Lecturer, Honors College Andrea Kirk, Ph.D., Lecturer, Honors College

• Susan Eve, Ph.D., Associate Dean of the Honors Susan Eve, Ph.D., Associate Dean of the Honors CollegeCollege

• Gloria Cox, Ph.D., Dean of the Honors CollegeGloria Cox, Ph.D., Dean of the Honors College

• Warren Burggren, Ph.D., Dean of the College of Arts Warren Burggren, Ph.D., Dean of the College of Arts and Sciencesand Sciences

• Wendy Wilkins, Ph.D., Provost and V.P. of Academic Wendy Wilkins, Ph.D., Provost and V.P. of Academic AffairsAffairs

• Gretchen Bataille, Ph.D., President of the University of Gretchen Bataille, Ph.D., President of the University of North Texas North Texas