Question

1. Give two reasons why we should globally transition to renewable energy?

2. Economists affirm that economic growth is not only feasible but also desirable and that the planet will not run out of natural resources if we put in place a proper price mechanism. Please give a precise example of how the price mechanism will work to avoid running out of a given resource.

3. Do you expect oil prices to reach the level of $80 to $100/barrel in the future? Please support your explanation with clear arguments.

4. Several countries are progressively shifting to Electric Vehicles (EVs). Can you please give reasonable explanation why this is happening?

Answer 1

1. The world is facing a lot of problems due to the huge pollution in the environment. The people all over the world. People are compelled to breathe in the polluted air which has a bad impact on the health majorly on the children and the people of older age, using renewable source of energy will help in reducing pollution which will help the people to live healthy lives and the environment will get a chance to repair itself.

Another reason is that we can save fuel for future generations. The dependency on fuels will also be reduced due to the use of renewable sources of energy. So, these were the reasons that we should shift towards using renewable sources of energy globally.

2. We see that people are highly dependent upon the fuels which we use for performing various tasks. But it has a very bad impact on the environment. So, in order to give a boost to the usage of renewable sources of energy, the government has to take a few vital decisions and promote them. The subsidy must be given to the companies who work on renewable sources of energy and to those companies also who are working for the development of renewable energy. A fixed price mechanism will also help in the development of renewable sources of energy. For promoting the project based on a renewable source of energy a fair bidding process must also be incorporated so that the companies can work with their full efficiency. In this way, the price mechanism will help in running out of the given resources.

3. No, I don't think that the price of oil will go as high as $80 or $100 as the world is moving towards the use of renewable sources of energy. is increasing day by day. The people are also moving towards the use of electric vehicles as it is cost-efficient and eco-friendly. In many countries, the use of CNG vehicles is also promoted which also does not require the use of oil for its usage. As there are alternatives available for oil to some extent therefore, the price of oil will not reach high to such extent.

4. The countries are shifting towards electric vehicles as these vehicles are eco-friendly, cost-efficient, and easy to use. Many college students prefer electric vehicles as the cost of these vehicles is less and also the maintenance is very low. They do not spend much on the fuels it runs only with charging by electricity. The increase in environmental pollution has also pulled towards using electric vehicles. These are the reasons for using electric vehicles.