Question

Discuss the economic concepts underlying the potential for a hydropower

facility to engage in strategic behaviour.

b. How do the temporal and spatial features of solar and wind energy affect

their economic value?

c. Discuss the economic logic underlying the claim that a history of regulatory

reversal could dampen investments in renewable energy.

d. Discuss the economic logic underlying the claim that some actions taken

today with seemingly high static costs can have low dynamic costs, and vice versa.

Answer 1

In this case there is a concept of the economic concepts underline the potential for a hydropower facility to engage in strategic behaviour so the economy concept related to the hydropower potential is that it is most useful energy source nowadays but the transmission cost and the distribution effect of this energy is a challenge.

Economy concept is the value analysis and evaluation on the basis of its real time productivity that enhances the energy certainty in selected areas as per the distribution criteria in this sector.

B. Temporal and spatial pictures of solar and wind energy affect their economic value because it is certain that the sources are temporal means sometime it is said to be a terrestrial timely contemporary but it is a future source of energy the feature is locally based and it depends on individual consumption of the energy so it reduces the transmission loss and increases the productivity and profitability of the energy distribution so this is the main economic logic behind the sources.

c. Economic logic underline the claim at history of regulatory reversal could dampen investments in Renewable Energy means distrust of investment in the renewable energy sources the major reason of distrust of investment is the rate of return and the continuation of loss in this sector and it is the study of a selected criteria for many nations that’s only reason investors are not interested to invest in this sector because they know the profitability and the rate of return is a challenge and this is the main economic logic behind dampen investment in Renewable Energy.

d. The economic logic under lying the claim that some actions taken today with seemingly High static cost and low dynamic cost and vice versa. I mean the specific logic is that the investment criteria in this area is least productive and investors are thinking and planning to make the project productive but in reality the rate of return on these projects are very low reversal time and reinvestment time on this project are very high so this is the main reason why it is said to be static cost and the load dynamic caused because dynamic cost involves risk of taking new decisions.