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econ work - why is there a need for government intervention in alternative energies Watch

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    need help with my economics work,
    why is there a need for government intervention in alternative energies?

    and,
    what intervention is currently in place?
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    Surely a leading question. Is there such a need?
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    huh?
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    The first and most simple reason is the current cost of producing electricity using alternative energies when compared to producing them from conventional methods. In a free market economy that means that, if were left to its own devices, alternative energies would not be taken up at all until the cost of continuing to produce electricity becomes higher than the cost of using alternative energies.
    There are two main disadvantages of waiting up to that point. The first come from the nature of the alternative technologies themselves. This is that they are less reliable in energy output than conventional methods and if the infrastructure required to store energy during times of excess output and release it during times of under production is not in place for that time then very large investments would be needed over a short time period for it to be installed. This could cause economic problems akin to the 1970s due a lack of productivity caused by a need to conserve energy. The second reason is that at that point the cost of producing electricity would already be high and due to a lack of prior investment, due to a lack of demand for the technology, the energy production would also be inefficient, so even if an adequate amount of energy could be produced it is likely to make production of good or delivery of services uncompetitive due to a high cost of electricity which is likely due to increase overhead costs.
    You could also talk about it in the opposite manner, that it allows governments to get production of electricity from these sources to adequate levels and the investment in the field has lead to decrease in the cost of electricity production and so the increased viability of alternative energy in the mass production of electricity and gas. As case studies look up Denmark and the work it has done in alternative energy sources as well examples of decreases in prices. E.g solar has gone from around $1.20/kWhr to around $0.20 /kWhr. You could show critical understanding by stating that this is likely to be due to a combination of oversupply as well as large subsidies put up by the American and Chinese Governments driving down prices of panels and so the are are other reasons as well as government intervention for alternative sources of energy become more feasible.
 
 
 
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