Chapter 19 - Economics of energy, the environment, and global climate change. After reading the material in this chapter, you should be able to: Characterize the basics of energy consumption, supply and price; discuss energy sustainability and conservation; list the types of damage done by pollution externalities;. | Chapter 19 Economics of Energy, the Environment, and Global Climate Change McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Learning Objectives Characterize the basics of energy consumption, supply and price. Discuss energy sustainability and conservation. List the types of damage done by pollution externalities. Describe different approaches to controlling pollution. Explain how a market-based approach could help mitigate global climate change. 19- Basics of Energy Supply and Demand Since 1850, oil usage per person in the . has more than tripled. Since 1973, due to the energy shocks of 1973 and 1979, energy usage per person in the . has remained relatively constant. The . uses more energy per person than most other countries. 19- Energy Consumption The United States uses more energy per person than most other countries. In 2008, the . used times the world average. Energy consumption is growing at a fast rate in the developing countries, especially in China and India. 19- . Energy Consumption per Person 19- Global Energy Consumption per Person, 2008 19- Energy Supply The most widely used energy sources are fossil fuels, which include coal, crude oil, and natural gas. The marginal cost of extraction is the amount of money that it takes to get one more ton of coal, one more barrel of oil, or one more cubic foot of natural gas out of the ground. This cost can vary greatly, depending on where the resource is located. 19- Energy Supply Companies will pump oil or mine coal where the marginal cost of extraction is the lowest. Once these resources are exhausted, companies will extract energy from more expensive locations. Eventually, as the marginal cost of extraction continues to rise, we will shift out of fossil fuels to alternatives. 19- Energy Supply Two other main sources of energy are renewable energy and nuclear power. Renewable energy sources such as wind and solar . | Chapter 19 Economics of Energy, the Environment, and Global Climate Change McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Learning Objectives Characterize the basics of energy consumption, supply and price. Discuss energy sustainability and conservation. List the types of damage done by pollution externalities. Describe different approaches to controlling pollution. Explain how a market-based approach could help mitigate global climate change. 19- Basics of Energy Supply and Demand Since 1850, oil usage per person in the . has more than tripled. Since 1973, due to the energy shocks of 1973 and 1979, energy usage per person in the . has remained relatively constant. The . uses more energy per person than most other countries. 19- Energy Consumption The United States uses more energy per person than most other countries. In 2008, the . used times the world average. Energy consumption is growing at a fast rate in the .
