The Impact of Renewable Energy on Fossil Fuels
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DOI: 10.23977/icemgd.2019.032
Corresponding Author
Xinyuan Zhang
ABSTRACT
Sustainable energy goals centers around supporting renewable energy development through economies of scale, learning, and technological developments. It is believed that, once cost equality with fossil fuel is accomplished, a change towards renewable energy will effectively proceed without the need for further subsidies on renewable source. Notwithstanding, the thinking is based on the fact that the cost of fossil fuel will not response to the increase in renewable energy sources (BP, 2015). In this paper we construct a standard model to test the legitimacy of this supposition, especially with coal and gas source of energy. The paper determines that fossil fuel costs will respond to the renewable energy actions and neutralize the efforts, to the extent rendering the efforts futile (Hamilton, 2008). A lot of research is still needed to determine plausible ways of promoting renewable energy sources against the stiff price competition from the fossil fuels (IEA, 2014). The need to promote sustainable energy sources is guided by the global sustainable demands and the increase carbon tax in some nations.
KEYWORDS
Renewable energy; fossil fuels; sustainable development