Sub: Economics Topic: Environment
Question:
The presentation should introduce and analyze … an interesting environmental regulation
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proposal, a firm's unique environmental strategy, an environmental opportunity you see in the
market, an example of environmental entrepreneurship, an environmental economics research
study, or anything else you think would be useful to share with the class. The key is to discover
these "stories", learn about the scientific, legal, or political details that drive the issue, use
economic concepts to enhance your analysis, and then share all that with the class so as to
facilitate discussion.
Solution:
Introduction
Germany is the world's largest user of wind power with an installed capacity of 20,621 MW in
2006, ahead of Spain which had an installed capacity of 11,615 MW. And, Germany has plans to
build more wind turbines.
Wind power currently produces about six percent of Germany's total power and it is said that
no other country has more technological know-how in this area.
Oil prices surge and global warming concerns fuel demand for green energy, Germany is seeing
the payoff. German officials claim that by 2050 their country will be powered 50% by renewable
- solar, wind, geothermal, and bio fuels. Considering Germany is one of the world's largest
consumers of energy, over 15 quadrillion BTUs in 2003, which included over 100 giga watt-
years of electricity, they have a long way to go.
Ecological Strategy
Climate conservation and resource conservation
 Value of wind energy use must be figured in for all legislative and planning decisions
 must be stated that wind energy use entails a significant intervention into the existing
regional and local relationships of the environment and the surroundings
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Sub: Economics Topic: Environment
 intervention must be consistently designed to minimize the negative impacts
 necessary to take corrective action in those cases where evaluations judge that the
negative impacts outweigh the common welfare goals pursued by the use of wind
energy
Conflict at the local level
 Communities often interested in installing wind farms
 They claim advantages for the local economy (business tax revenues),for the regional
economy (job creation), or higher level environmental and energy policy
 Negative stance of the people in the immediate surroundings
 Landscape aesthetics
 Over noise emissions
 Light effects(shadows cast in the rhythm of the rotors, warning lights in the evening and
at night)
 Expansion development on land - more perspective
 Cleaning up the Landscape and Repowering - twofold opportunity
 Regulation options for eliminating scattered sites and legislative planning for
repowering
 Ambitious perception of inter-communal planning opportunities
 Environmental interests in installation planning and licensing
 Clearance issues - removing the repressive effects caused by the "wind power decrees"
 Nature conservation
 Strategically important aspects regarding the environment and safety
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Sub: Economics Topic: Environment
The development foreseen by the German Federal Government does not
raise any fundamental objections from the perspective of environmental conservation
and precautions as well as marine safety.
 Technical possibilities
There is still a considerable need for research and development with
regard to the technical possibilities to reduce environmental impacts and safety haza rds.
 Licensing Regulations
The licensing regulations for wind turbines in the EEZ anchored in the
German "Seeanlagen-verordnung" place a high value on the interests of marine
environment and nature conservation.
 Grouping cable routes, simplifying the authorization of cable connections, upstream
grids
A sufficient legal and economical basis is lacking for the ecologically and
economically desirable grouping of cable routes for several wind farms.
The land use planning does not foresee providing space for the transmission line
routes in the coastal regions.
The task arises in this context (but also independently) to create an integrated
licensing process for stretches of cable in coastal waters and on land, to replace the
current parallel, separate licensing processes
An essential disadvantage of underground cables as compared to traditional
high-voltage overhead transmission lines is their higher investment costs.
Climate change has become a major driver for renewable policy, the German
government has set an ambitious domestic target of 25% reduction in CO2 emissions
by 2005. However, Currently Germany produces only 3% of their energy from renewable
Reference:
1) Development of an Ecological Strategy, for Onshore and Offshore, Wind Power
Use(Commissioned by the German Federal Environmental Agency) - March, 2007
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Sub: Economics Topic: Environment
2) Renewable Energy Jobs Soar in Germany, April 8, 2008 by Jane Burgermeister, European
Correspondent
3) Wind Power in Germany, By Gordon Feller, December 16 2004
4) Green Biz January 31, 2008, 5:00PM EST text size:, The Wind at Germany's Back , Business
Week
Summary
 Ecological Strategy – wind power can already be considered a fundament of an
“ecological strategy” due to its meaning for climate conservation and resource
conservation.
 Onshore Wind Power
 Offshore Wind Power
** End of the Solution **
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Finance, Marketing, Statistics, Economics and others. Check out mo re solved problems in our Solution Libra ry.
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*The Homework solutions from ClassOf1 a re intended to help the s tudent understa nd the approa ch to sol vi ng the problem and not for submi tting the same in
lieu of your a cademic submissions for grades .