Economics of sustainable use of energy

 
     
 

As the main cause of global warming is greenhouse gases congregating in the earth's atmosphere, the principal strategy has to be to use less energy particularly that derived from fossil fuels and to use what is needed more efficiently.

As 40% of all energy is used in the home, everyone can do something to reduce energy consumption and to use energy more efficiently. As discussed in the next module, some actions will result in energy saving with zero cost such as switching lights off when not in the room. Other actions have a low cost such low energy light bulbs. Energy efficient equipment and appliances require a higher initial investment, but the more efficient use of energy will result in lower running costs and less pollution.

Saving energy will save money and environmental pollution.

It is worth remembering that for many energy sources, the user only pays part of the cost - the external costs such as the environmental, social and health costs are borne by society. It is EU policy to transfer these costs from society to the user; that is, the user should pay the full cost.

Third step in developing sustainable energy policy is to utilise renewable energy sources which are both wide spread and abundant and do not suffer any resource constraints. The potential for small scale sources attached to the home is very large and forms the text of other website modules.

Further advice