Energy sources as an economic problem
“More than ever energy dictates our lives. Once viewed as a utility, an enabler with limited
consumer interest, energy is now the key word in our struggle for a sustainable future… The
need for sustainability has turned energy into a highly relevant product, even approximating a
lifestyle item. It is fair to state that when it comes to energy, we are indisputably experiencing a
big shift in value perception, stretching far further than just utilitarian or even economical
– Sam Collot d’Escury (Dorsman, Simpson & Westerman, 2013, v)
This Bachelor thesis has focused on contributing to a better understanding of how important the energy sources are for the global economy. It also refers to the role of the power sources in economic development and their influence on financial markets. The centerpiece of this thesis is to give an introduction to a variety of public conceptions of the so-called “energy problem” and to review different popular energy policies. The paper analyzes these problems and policies with the help of past and present world energy supply and demand patterns, showing that the lack of power or the inappropriate energy management programs could lead to economic problems, which may sometimes have devastating results. The thesis is organized as follows. The definition of energy sources is presented at the beginning of this paper.
Afterwards some examples for energy sources are discussed. The third section explains the important role of the energy commodities and resources in economic development. Section four gives a short description of the term energy policy and shows the link between energy and economics. Energy planning models such as decentralization, centralization, topdown and bottom-up model are pointed out and analyzed in this segment of the current paper. The benefits and disadvantages of privatization are discussed in the next chapter. Historical examples are provided in this part of the thesis. Section six outlines liberalization of a country’s energy sector as a popular policy among both developed and developing countries. It analyzes pros and cons of the approach and reviews some examples. The conclusion summarizes the results and rounds of this thesis.