ECONOMICS
MARKET FAILURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the government pays a subsidy to generators of renewable energy
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the social cost of electricity generated from renewable resources is greater than the private cost
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the government is subsidising the negative externalities arising from the generation of green energy
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electricity suppliers are paying higher average prices for their electricity because some of the electricity is generated from green sources
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Detailed explanation-1: -Benefits of Renewable Energy Generating energy that produces no greenhouse gas emissions from fossil fuels and reduces some types of air pollution. Diversifying energy supply and reducing dependence on imported fuels. Creating economic development and jobs in manufacturing, installation, and more.
Detailed explanation-2: -Within the U.S. voluntary market, green power is defined as electricity produced from solar, wind, geothermal, biogas, eligible biomass, and low-impact small hydroelectric sources. To qualify as green power, this renewable electricity must also go above and beyond what is otherwise required by mandate or requirement.
Detailed explanation-3: -Innovations that reduce the price of manufacturing solar panels and wind turbines also reduce the cost of the electricity they produce when these technologies operate at scale – but this hasn’t happened to the same extent with fossil fuels like coal.
Detailed explanation-4: -SOLAR ENERGY. Solar energy is the most abundant of all energy resources and can even be harnessed in cloudy weather. WIND ENERGY. GEOTHERMAL ENERGY. HYDROPOWER. OCEAN ENERGY. BIOENERGY.