Green technology
is any type of technology that tends to reduce pollution or energy consumption, or has some other environmental benefit. The demand, supply, external benefits and cost-efficiency of green technology are important issues in economics of green technology. Does this Spark an idea?
Significance
The economics of green technology can help determine whether certain technologies are viable. For instance, if solar panels cost 10 times more to produce than the energy savings they would create during their lifetimes, they might not be economically worthwhile to produce. While green technologies can save on energy costs, the cost of researching and producing them is often greater than the cost of alternatives.
Time Frame
Economic analysis of green technologies can be difficult because benefits are often difficult to quantify and can take place over very long periods of time. For instance, new solar paneling on a home may have a large upfront cost, but it could result in energy savings for several decades. Green technologies are often viewed as long-term investments that must be used for many years before benefits will exceed the initial costs.
Considerations
One of the key issues surrounding green technologies is climate change or global warming. Green technologies are often thought to help reduce the impact of climate change. Proponents of this idea might argue that even if a green technology costs more money than it saves, it might still be worthwhile because slowing or halting climate change is beneficial.
Tags: green technology, climate change, economics green, economics green technology, energy savings