WHAT ROLE DOES ECONOMICS PLAY IN ENERGY RESOURCE USE?

According to most analysts the key to making a move to more sustainable
energy resources and societies, is not technology but economics and
politics.
Analysts feel that governments can use 3 basic economic and political
strategies to help dampen the short-term and long-term use of a
particular energy resource by:

1. Allowing all energy resources to compete in a free market
without any interference from the government.
2. Trying to keep energy prices artificially low to encourage the
use of selected energy resources.
3. Keeping energy prices artificially high to discourage the use of
a particular resource.

Many economists favour increasing taxes on fossil fuels as a way to
reduce air and water pollution and also to slow down global warming.

Michelle Baatjies

Third year BCB student

Email 2431471@uwc.ac.za