NATURAL ECONOMICS ASSIGNMENT

PART 2

Tuesday, October 28, 2008

PART II - Energy Trends Essay

 a)         The use of energy fuels our economies and enables our countries to grow; although as a consequence to such great benefits, we must be careful in which energy we choose and how it can affect our environment and society. China and India have the two largest populations on the planet and it would be interesting to compare both nations on their energy trends to see who comes out superlative. As a third view, a developed country such as Canada will be used to look at how energy trends differ from the developing to the developed nations. Energy utilization in China and India has risen greatly in the past years despite an increase in energy efficiency. Heavy consumption of energy is due to the growing populations and rapidly developing industrial sector which requires hefty amounts of energy to run and expand. The energy mix in China contains close to 80% fossil fuels which are comprised of about 70% coal; and other energy used includes 16% hydro and 2% nuclear. China's energy expenditure increased by 8% in 2006 while the worlds energy consumption rose just over 2% in 2006 (1% less then it was in 2005, which gives us the notion that there are countries working on saving the environment). Because of the gravely negative affects the unclean coal China uses, the country has seriously discussed changing its energy mix to alternative solutions such as nuclear power and renewable energy. In an effort to reduce the usage of coal, China shut down coal mining sites by the thousands in the past 10 years which has lowered the amount of coal produced by over 20%. India is behind China when it comes to the consumption of energy, mostly due to the fact that they have a larger rural population (they generate about 5% of the world’s electricity). On the other hand, the consumption of energy has increased tenfold in the last 10 years, an increase of over 60% in energy usage (70% of which is coal). Due to the wide abundance of coal India has, economist estimate that the supply could last them centuries which is why the country is so adamant on sticking to coal as their main energy component (India is also the 3rd largest coal producer on the planet). The growing economy and population in India have demanded an increased amount of energy usage in the past 10 years which has led to a growth of 45% extra coal being produced and used. On a different social and economic level, Canada’s energy consumption includes close to 50% fossil fuels (30% oil and 12% coal) as well as 24% natural gas; a large difference compared to both China and India. Due to the large land space and small population Canada has, energy costs increase because it takes more energy to travel further distances and to live during the cold winters. Canada’s use of fossil fuels emits carbon dioxide into the environment which changes the climate over time with a negative effect; it is important for the country to find alternatives quickly. Canada’s energy consumption has increased by over 20% in the past two decades of which 40% is used by the industrial sector and 20% from the residential sector. Canadians have been using increasing amounts of energy (an increase of nearly 25%) because of the vehicles we drive and the extreme weather conditions which surround us on a cyclical basis (the need to heat our buildings in the winter and cool them down in the summer). Because of the increased energy usage in Canada, the level of greenhouse gas emissions has also increased parallel (the amount of carbon dioxide emitted into the atmosphere has jumped almost 30% since the beginning of the 90’s). China and India have had a large increase of energy consumed in the past decade because of their expanding economies which gives them more plausible excuses then Canada has. There have been many reports that Canada is one of the largest polluters in the world with an estimated 25 tons of CO2 emissions per person every year, which is high even compared to most developing countries. China has taken the #1 spot from the U.S as the largest greenhouse gas emitter in the world, but you can’t blame them because they have had increasing efforts to reduce pollution and all the countries expect them to produce and export large amounts of products at low costs which are hard to do without polluting the environment. Over six thousand tons of CO2 have been created by China’s industrial growth in the past year alone!  India’s CO2 emissions increased at about 5% per year in the past decade and will continue to grow in order to satisfy the needs of their rapidly developing country. To wrap up the statistical information mentioned above, all three countries observed consume large amounts of energy and dispense unhealthy amounts of carbon dioxide into the atmosphere due to their overpopulation, or neglect to enforce stricter regulations and they need to focus on improving their environments before it shows its negative effects. Graphs relating to the data mentioned above can be found below:

CHINA

Figures are in percentage of total energy mix:

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                     2010      2005

 Consumption

 Coal                   66.1      69.1

 Oil                    20.5      21.0

 Natural gas             5.3       2.8

 Nuclear power           0.9       0.8

 Hydropower              6.8       6.2

 Other renewable energy  0.4       0.1

 -------------------------------------------

 Production

 Coal                   74.7      76.5

 Oil                    11.3      12.6

 Natural gas             5.0       3.2

 Nuclear                 1.0       0.9

 Hydropower              7.5       6.7

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 Other renewable energy  0.5       0.1

 

INDIA

Carbon Emission per Capita:

 b) Over the recent years, China and India’s energy usage has risen a significant amount because of their growth. Twenty years ago, India and China only consumed less than 10% of the world’s energy even though they had populations near 2 billion; and now they consume over 20% ...

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