Environmental economics Essay Example | Topics and Well Written Essays - 500 words

Environmental economics - Essay Example According to Berlin, steps are underway to enable Germany meet its target to cut down carbon emissions by the year 2020 (Thomas n.p). The emissions will be down by 40% and later will do away with fossil and nuclear form of energy. The plan will affect companies’ profits from power plants as the government subsidizes the renewed energy. However, there is a rise in the cost of electricity, as consumers have to meet the costs of the subsidies for renewable sources of energy. The economy of Germany is growing well despite the rising costs of energy and has managed to reduce the energy intensity. Germany has become the largest exporter of solar inverters by the help of its renewable energy Act passed in 2000.Solar photovoltaic cells have provided cheap energy for the residents reducing the cost of electricity (Thomas n.p). Germany is aiming at the smart energy management concept by creating smart homes to create more comfort. Economics is an area that focuses on the growth of the economy in various ways such as job creation and other forms of developments. Renewable energy industry creates many jobs in Germany as highlighted in the article with individuals working in the industries that manufacture cells and another gadget that use solar, the wind, or wave energy. Employment is one of the major factors affecting the economy and since it leads to high incomes and a high standards of living. Development of the renewable energy facilitates and promotes developments in Germany with many people buying shares in the power generating companies (Thomas n.p). Since the renewable energy sector is labour intensive, many people are employed and can save for further investments. The payments received by the landowners in Germany after the company installs windmills in their land increases their income. Adoption of strong policies for the renewable energy will enable