Question

1. In the electricity market, the U.S. overwhelmingly uses fossil fuels, primarily coal and natural gas. One of the backstop resources is electricity generated from wind. If the price of wind energy decreases

a. we will stop using fossil fuels sooner.

b. we will continue using fossil fuels for an even longer period of time before transitioning to the backstop resource.

c. there will be no impact on when we transition from fossil fuels to wind.

d. the demand for wind energy will also decrease.

Answer 1

- Yes it is true that in the electricity market, the U.S. overwhelmingly uses fossil fuels, primarily coal and natural gas. One of the backstop resources is electricity generated from wind.

- With a perpetual flexibly of renewable assets, we can possibly control the earth from clean energy alone. The principle impediment to this is the general expense of renewable energy.

- The innovation required to produce power from renewables can be costly. This turns out to be less of an issue in nations where government awards are accessible to help finance interest in renewables. The issue is that not all nations offer such incentives.

- The primary impediment to the appropriation of renewable energy sources is cost. While this is getting less of an issue every year, it is as yet a significant hindrance in adoption of the renewable energy like wind energy.

- However it should be noted that it may take very long time for renewable energy like wind energy to completely replace fossil fuel because wind energy is less predictable and depends on the wind and also we are too dependent on the fossil fuel for energy requirments. But theoretically we may move to fossil fuel faster if the wind energy prices come down.

Correct answer is

In the given questions, If the price of wind energy decreases

a. we will stop using fossil fuels sooner.