Econ 545: Business Economics Project Two: Microeconomic Analysis
3287 words 14 pagesECON 545: Business Economics
Project Two: Microeconomic Analysis
Situation B For Situation B, Cindy is looking at investing into the renewable energy industry. She is looking at one section of the industry to invest in, which is that of contracting the installation of solar panels. Cindy, has read, that families and businesses are saving money by going to solar for their power needed. Also, that there are government back regulation to make solar more assessable to people. For Cindy, she is looking pass the business opportunity for installing solar planes, but that this product can reduce pollution and help save the environment.
GDP and Solar Energy In the United States and most nations in the world, energy is vital in keeping …show more content…
With the government mandated renewable energy targets, there is going to be a much bigger demand for solar panels. In the last five years, the call for solar panels as increase four times the amount, that was seen between 1996-2008. This was found, due to solar power being 2 dollars less a watt hour, that other means of fossil or nuclear power sources. Once of the major impacts that renewable energy has had on the economy is how it was been adding to the rate of unemployment. From the time the Clean Air Act was enacted, it has eliminated 590,000 jobs in a 15 year period. For every one job that was created by renewable energy, 2.2 jobs in other energy areas were loss. This has resulted in some states, limiting the growth of solar power within the state. Unemployment rates have also placed a halt on the spending habits of consumers. There have been only small amount of income growth over the past 10 years of 0.2% per year. The lack of growth, has resulted in consumers having to decreased the amount of money they are able to invest into solar panels. The average consumer is having a hard time paying for food, housing and power under the recession. This results in the inability to saving money or shift money to pay for extra items, outside items needed for living. Consumers are looking for ways to reduce power cost, but are not able to spend the money needed to have solar panels added to their homes of business. As for renewable energy