Economics of Energy and Environment Essay Example | Topics and Well Written Essays - 3750 words

Economics of Energy and Environment - Essay Example The remaining amount of fuel had been utilised for energy motives. It has been observed that the consumption of energy in the UK fell to its lowest level in the years2010 and 2011 compared to the year 1984. This decrease in energy has been conceived due to the reduction of 18% in the utilisation of gas. From the year 1970, there has been a change in the consumption of fuel from solid fuels to fuel mix from 46,120 million tonnes to 2,437 million tonnes of oil in the year 2011. The consumption of fuel has been substituted by gas which increased from 14,408 million tonnes to 42,378 million tonnes of oil equivalent from the year 1970 to 2011. The consumption of electricity is also observed to have increased by a considerable extent i.e. by 65% which is equivalent to 27,334 million tonnes of oil (Crown, â€Å"Energy Consumption in the United Kingdom: 2012†). The industrial sector is responsible for consuming around 40% of energy which amounted to around 62,333 thousand tonnes of oi l equivalent. On the other hand, the domestic sector and transport are perceived to be utilising nearly 24% and 18% respectively. Other users including public administration, agriculture and commerce are observed to be using 12% of energy. Furthermore, 7% of the energy was consumed for non-energy motives (Crown, â€Å"Energy Consumption in the United Kingdom: 2012†). Domestic Energy Consumption From The Year 1970 To 2011 Source: [1] (Crown, â€Å"Energy Consumption in the United Kingdom: 2012†) In the year 1990, it has been perceived that the industrial sector consumed around 24% of energy which signifies that there was fall in energy consumption in the industrial sector as compared to the period of 1970.... This essay stresses that the households are also required to adopt innovative and certified household electrical appliances and products with the intention of better utilisation of energy. Moreover, households are required to adopt latest products which are energy efficient with the motive of ascertaining that energy is consumed at a minimum level. The households are required to acquire technologies which emit carbon in a minimised manner. Furthermore, these innovative and low carbon emitting technologies will facilitate households with better power as well as money saving opportunities. The increased price of energy will initiate households to acquire more innovative technologies for producing renewable sources of energy. This paper makes a conclusion that it can be comprehended that the prices of energy is likely to increase for households, as the current market prices only pay for returns to existing energy production. By raising the regulation and costs of existing energy production, and providing grants and subsidies to encourage the adoption of new technology, the government is rebalancing the costs of energy consumption more in favour of low carbon technologies. In the long run, combined with technological developments making such technologies more affordable, and regulations requiring that they are used, there will be a shift toother non-renewable sources of energy in order to improve energy efficiency, preserve energy for future consumption, as well as reducing carbon emission.