Benefits Of Energy Policy Implementation

Energy is the foundation of all development. The availability of energy represents the satisfaction of all basic human needs, water, food, health, and education. For all the residents of the planet, as well as for residents of developed and developing countries, without energy policies, there is no safe drinking water, hospitals, schools, housing, and transportation. Therefore, energy policies must put in place. Energy policy refers to participation in or influence on decision-making in policy areas such as agriculture, climate, development, economy, environment, and external relations. (Spilker, Koubi and Bernauer, 2017) But in the 21st century, developing countries face significant energy challenges; as countries with little industrial and economic activity and where people generally have low incomes’ (Cambridge University, 2020), it is sometimes difficult to implement sustainable energy policies. For a while, meeting the needs of billions of people who still lack access to modern and essential energy services, they must also participate in the global ecological transition to a clean and low-carbon energy system. COP21 in Paris, bringing together a large number of developing countries, is one of the most persuasive examples of the human will to take account of the damage caused to the earth, with energy policy bringing undeniable advantages and disadvantages to their economies.

Firstly, energy policy brings territorial development and employment. The ecological transformation currently facing the world requires smarter lifestyles and consumption patterns. The work of handling coal or minerals is gradually giving way to jobs in renewable energies. Although there is still a long way to go, both developed and developing countries must respect environmental agreements. (Batchelor, et al., p.1591, 2019) In this sense, two points should consider.

First, the decentralized nature of these energy sources allows for a better distribution of production resources in these areas. For instance, in the case of Argentina, there is great potential for the installation of wind farms in Patagonia. Also, in the Pampeana region in the north-east, biomass plants is an environmental way for agriculture, really developed as well as for solar farms in the north-west and the Cuyo region, which is one of the first regions who respected the environment. Therefore, these regions are undergoing territorial upheavals to accommodate the new structures to process renewable energies. (Kim, pp.5, 2019)

Then, most energy policy projects can integrate into pre-existing economic activities in these areas. Indeed, commercial activities such as animal husbandry, forestry, and ecotourism are developing considerably and changing the territory (Pandey, 2017).

Second, concerning labor-intensive non-renewable resources, global ecological transformation requires more research. It creates more employment opportunities in R&D and technical staff. (Panda, 2017)

However, this argument must be treated with caution, as there is insufficient research on net job creation in the energy efficiency policy sector, and the situation differs significantly from country to country. However, it does estimate the number of direct and indirect jobs created in the project. The actual level of new job creation depends mainly on the country’s ability to develop industrial sectors related to energy policy. In this sense, the competitiveness of regional companies about large international companies, particularly Chinese ones, remains a particularly complex issue. Latin American countries such as Argentina and Brazil are seeking to develop local industries linked to their energy policies. Both countries have established standards that require a certain percentage of national components to obtain affordable prices or financing mechanisms. (Tolmasquim, 2012)

Besides, in recent years, many countries have made progress and reduced inequalities, particularly economic disparities, due to energy policies. Several states have made unquestionable progress in increasing electricity consumption, which has undoubtedly played a role in promoting the country’s development. These countries have several factors in common: the sustainability of political commitment and financial support. (Keho, pp.234, 2016) Some states have managed to strike a balance between the economic viability of e-commerce and maintaining affordable consumer prices. It has been achieved through the strategic and targeted use of public funds. This strategy can take several forms, depending on the local environment. For example, Bangladesh’s rural cooperation program has increased the proportion of people with electricity from 32% to 62% between 2000 and 2014. Thus, more than half of the territory has access to electricity and not only the wealthy populations of the big cities. (Kim, pp.5, 2019)

However, the development and implementation of energy policies are increasingly costly and show these limitations. It takes a lot of money to develop, for example, a wind farm or a dam. A wind turbine generator costs 2 to 3 million dollars, not including installation costs, and the whole structure of the wind turbine. (Windindustry, 2020)

In the case of Brazil, only 8% of their electricity production is renewable energy, and they are among the ten most developed countries in terms of clean energy. But it could go down even more because, under the leadership of populist president Jair Bolsonaro, the future of wind power is causing some concern. On the one hand, it has shown its support for the development of wind energy, but due to neo-liberal economic policies, it may also reduce subsidies. (Unwin, 2019)

Moreover, variable renewable energies are intermittent, i.e., they depend on natural changes in wind, sunlight, or water, a direct current flow cannot ensure. Therefore, in the medium and long term, the large-scale development of energy policies has posed new challenges to the uncertainty of renewable energies. Either, to actively manage demand, as 1.3 billion people in 104 developing countries or 74% of the world’s population (World Vision, 2020) may become difficult to supply. The economy is then affected because the investment of this infrastructure for renewable energy may not be profitable.

Finally, as international experience shows when a country starts to invest in an energy sector that did not exist before, in other words, the cost of developing renewable energy will be higher than international standards. (Huenetler et al., 2014).

Subsequently, in the case of energy laissez-faire, without strong climate policies, the economies of developing countries could face price shocks and crises in the previous sense. Although the growth of renewable energies and the renaissance of nuclear power expected to account for 25-30% of the world’s energy balance in 2050, there are still 75-70% of fossil fuels exploited. (Nguyen & Hakinaka, pp.1052, 2019) In a world where the population is growing by the day, fossil fuels will tend to be in short supply and will be in short supply. Finding alternatives is, therefore, essential. Oil and gas supply tensions are intensifying between countries, and prices are soaring. But all this will lead to shortages in the short and medium-term. (Kyriakopoulos & Arabatzis, pp. 1044, 2016)

However, the main problem with this situation is that it is not sustainable from climate risk. By 2050, emissions will double, and global carbon dioxide emissions will exceed 900 ppmv. According to the IPCC, in the long term, the possibility of temperature increases will exceed 50%. It will exceed 5°C while the possibility of temperature increase is still close to 30% or seven ℃. (Masson-Delmotte et al., n.d.) These are no longer scenarios of progressive climate change, as there may be significant discontinuities: we will also get rid of the management of calculated risks and enter a situation of extreme uncertainty. Climate prevention programs presuppose strong policies, even if such policies hamper the national economy.

Energy policy in developing countries has created employment opportunities and has enabled considerable territorial change. All these changes have contributed to the development of populations through access to running water and electricity. Thus, in the long term, allowing economic growth.

However, if no immediate energy policies take, then the opposite effect is possible. For it will be more expensive to develop renewable energies instead of continuing to extract fossil fuels.

Secondly, as the availability of fossil fuels is not unlimited, their consumption can cause many financial crises. Seven billion people will not be able to continue using fossil fuels in their daily lives forever, and industries will have to change their minds too.

But climate change will require further steps, and in the long term, the economy will experience profound turbulence. If mankind is to control climate change, both developed and developing countries must use the potential of energy conservation, nuclear power, renewable energy, and carbon dioxide storage to continue to live.