Loading

Module 1: Renewable and Non-Renewable Economics Resources

Notes
Study Reminders
Support
Text Version

Renewable and Non-renewable Economics Resources - Lesson Summary

Set your study reminders

We will email you at these times to remind you to study.
  • Monday

    -

    7am

    +

    Tuesday

    -

    7am

    +

    Wednesday

    -

    7am

    +

    Thursday

    -

    7am

    +

    Friday

    -

    7am

    +

    Saturday

    -

    7am

    +

    Sunday

    -

    7am

    +

The key points from this module are: In the case of biomass, the issues are that if we want to dedicate some land for biomass production then there is an issue of food versus fuel. Bioenergy systems have the added advantage of the technology and most of the generates local employment and this is something to think in the future that there will be much more in terms of potential. In all of this, we have to look at the overall sustainability in terms of energy as well as other issues in terms of land and water. Materials that are less carbon intensity, the dematerialization, the light-weighting and now with nanotechnology, the advantage to design a material which has the properties that we require. If we look at the global materials used you will see that energy-intensive materials account for about 50% of the industrial energy used, cement steel, paper, chemical, fertilizers and that most of the materials are being consumed by the developing countries, there are much higher growth rates than in the developing countries. The decisions that we have to make are how much should we produce in each of the years, you are going to have a production till the time when the entire resource gets utilized and that is where it gets exhausted. The market price of a resource net its extraction cost will be rising at the discount rate and that is when we talk of an inexhaustible resource we will try to get the optimum strategy. From a resource point of view, the monopolists conserve the resource because the monopolists are looking at the overall maximization of revenue but in the process given the discount rate that is where the population and the consumers are exposed to much higher prices and because of that the overall utility of society is less under a monopolist case even though the resources get conserved for a longer time. The monopolists want to maximize revenue and because of that, we produce less from the mine in the initial years as compared to the competition case and with the result that overall the revenue increases.