The demand for electricity and most of the technical parameters were taken from an energy sector study made by Lahnmeyer International (in 1995) and several other consulting agencies.
Several scenarios have been considered. The base scenario describes all the current electricity production technologies (nuclear, hydro-, thermal, wind power stations) and transportation technologies. Some modern technologies (wind, hydro-, modern thermal power plants) do not have capacity constraints, so that the program can build the ‘new’ power station if it is optimal to do so. There is currently a moratorium on the construction of nuclear power plants; hence no new nuclear power stations are modelled.
The alternative scenarios, as compared to the base scenario, limit the minimal amount of electricity produced from renewable energy sources.
The results show that if we do not consider environmental impact on power generation, the increase in the share of electricity produced from RES will correspond to a comparatively large increase in total cost of electricity production. The outcome of the study is that incorporation of the costs of CO, CO2, SO2, NOx emission are not available yet, but apparently, the increase in costs connected with the increase of the RES share will be at least partially compensated by the decrease in environmental costs.
Reference: 1. Directive 2001/77/EC of the European Parliament and of the Council of 27 September 2001 on the promotion of electricity produced from renewable energy sources in the internal electricity market.
World Economic Integration and its Negative Consequences
The issue of integration in the global economy has aroused a great interest of sociologists, political scientists, and, of course, economists. It appears to be a very ambivalent issue, being a cause of various opinions and a ground for numerous disputes.
Generally, two main implications of the world integration are considered . One of them is the negative effect on employment and wage rates of unskilled workers. Indeed, over the last two decades the problem of declining the wage rates for unskilled workers and increasing the rates of unemployment became extremely urgent for developed countries, especially the United States and the European countries. Actually, poor countries become the victims of the globalization in terms of increasing unemployment too, while their macroeconomic indicators remain favourable. This, in its turn, lowers national income, which means the emergence of the poverty. The only way to solve the poverty problem is by increasing employment opportunities for the poor. However, whilst earlier only the poor and unskilled workers suffered from unemployment, today it is becoming a problem of the middle class and even college graduates.
The other impact of globalization is considered to be the disintegration of production. In fact, with further integration of the world economy firms find it more profitable to allocate the different stages of their production process all over the world. It is evident, that the overall trade substantially increased during the years of global integration. Basically, the interaction between education failures and immigration directly results in lower wage rates for unskilled workers, and collaborating with international trade they bring up the negative outcome from globalization. Actually, an increasing share of services in the economy should be mentioned here as another consequence of integration.
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