By Jacob Lee
- Energy Efficiency
The energy efficiency takes a variety of forms: space Insulation from the external environment, installment of LED lighting, and the improved gas mileage. It is known to us that economic growth drives the increase in energy consumption. Economic growth makes people have more disposable incomes at hand. With more disposable income, people can buy more cars and build more buildings, which leads to more energy consumption.
Fortunately, energy efficiency can go together with economic development. For example, automotive industry is very interested in energy efficiency. As for the automotive, consumers are getting more and more sensitive to fuel economy at it directly affects their spending on fuel. If a car maker cannot meet the consumers’ expectation or fall behind other competitors in terms of fuel economy, the car maker would face a market risk. Conversely, car makers are also incentivized to make a better fuel economic car because it presents them a new business opportunity. To the extent of our discussion, the electric vehicle market’s huge growth is also one of the examples of energy efficiency as well. Private sectors are recognizing the value proposition of energy efficiency, and are ready to capture these values.
- Job creation
According to the Environmental Defense Fund’s report, renewable energy creates at a rate 12 times faster than that of the rest of the U.S. economy. Job creation is, perhaps, one of the most important indicators for municipal and national government officials. Renewable industry has grown rapidly in recent years, and it is expected that the economic growth will last in the future as well.
Industry growth creates more jobs, which people need in everywhere. Take for example, as the wind farms are being installed across the country, the industry needs specialists in manufacturing, project development, and construction and turbine installation; financial services, transportation and logistics and maintenance and operation.[i]
- The Shared View
Most of the megacities are located on the coastal lands. It is very likely that the first victims of climate change would be cities if the sea-level rises due to global warming. In fact, cities have been always fighting from man-made environmental concerns. For example, in London, industrial development in the 19th century polluted water supply channel and caused a cholera outbreak, killing 616 people – 1854 Broad Street cholera outbreak. With a physician, John Snow discovering the correlation between contaminated water and cholera outbreak, London improved sanitation facility and stood strong again.
For a recent example, many Chinese cities are suffering from air pollution. Acknowledging the seriousness of air pollution, Chinese cities are fighting with air pollution, which is also strongly backed by the central government. Both Municipalities and the central government realized that the cost of environmental pollution. Equally importantly, it is worth noting that developing countries like China is also participating in green energy policy. A few decades ago, green energy policy was thought to be only enforceable in developed countries. Many developing countries put a priority on economic development than environmental concerns. This view is now changing in developing countries as well.
Conclusion
Economic development and green energy policy can go together thanks to technological advancement, private and public sector interest, and the shared view about upcoming environmental threats. These favorable conditions are both available for municipal and national governments.
Unlike national governments, municipalities can act more quickly given that there are fewer constraints on implementing green energy policy. And yet, the impact of municipal government policy is proportionally bigger because most of energy is used in urban areas.
The cities have been the hub for innovative ideas to drive economic growth and fight with challenges. Now, another environmental challenge is imminent. Can cities stand strong and thrive? I believe they can prosper if they utilize the best mind of people and favorable technological, market and political situation.
[i] Greenmatch, “Does Renewable Energy Create Jobs?” Wired, Last Modified November 6, 2018, https://www.greenmatch.co.uk/blog/2017/07/does-renewable-energy-create-jobs
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