‘Clean Energy Haven Hypothesis’
During our lectures we came across some interesting points such as the difference between GDP and GNP, the pollution haven hypothesis and other factors which show that there is a positive link between economic growth and environmental degradation in developing countries.
A theme I’ve tried to incorporate into all my blogs has been the effect that each topic we’ve discussed affects Ireland, and how if possible it could be used to positively influence how we do things both as Irish citizens, and as an independent state.
There were many points raised in the lectures which when applied to Ireland, seemed to me like we were going backwards economically, and socially. We are cutting Health care, education, spending on infrastructure and taxing people to the point where disposable income is at an all time low, and consumer confidence is almost non-existent. Leading economist have proved many times that austerity alone is not a successful method of economic recovery, it has to be done logically along with investment in key area’s. Also the fact that GDP seems to be our governments main concern, with little or no regard given to the Human development index, got me thinking that investment would be the way forward.
With this in mind I began to look at area’s where investment might work and the pollution haven hypothesis jumped out at me immediately. If developing countries encourage foreign investment by allowing laxer environmental controls, why could Ireland not strive for the opposite?
With proven clean energy methods, such as wind, hydro-electric and solar power widely available with little or no environmental impact why do we not invest more into them, instead of looking at fuels such as methane which require methods like ‘fracking’ to extract them.
Ireland as a developed country can attract foreign investment already and has done so very successfully in the past. Our educated workforce, much improved infrastructure and attractive rate of corporation tax have all been factors. I believe there needs to be a shift towards clean energy to attract investment. While developing countries trade environmental protection for investment, from mining companies for example, we could encourage investment from renewable energy companies by encouraging the use of clean fuel sources.
A report by the IWEA (Irish Wind Energy Association) in 2009 estimated the potential employment from an increase in installed wind energy as being just over 10,760 jobs up to 2020. The 2020 target is set in line with an E.U wide agreement from 2007 for 25% of the E.U’s energy coming from renewable sources. Ireland’s specific target is 16%. But there is no reason why this could not be more, and therefore provide more jobs.
Germany for example currently employ 38,000 people in the wind power sector. This is mainly in the manufacture of wind turbine components. There is no reason why Ireland could not strive for similar levels.
We are constantly reminded that Ireland is an export driven economy and that this is one of the best hopes for economic recovery. It is really not beyond the realms of rational thought that Ireland could be a leading energy exporter. Not just simply electricity, but components and technology also. Direct investment by companies in the field would result in research taking place in our college’s and universities, with the possibility of new technology being developed.
It is definitely something that the current government is looking at, but maybe not closely enough. I certainly don’t have all the answers, but the expertise is available in this country. Instead of a the ‘Pollution Haven Hypothesis’, Ireland could start its very own ‘Clean Energy Haven Hypothesis’
Related Links:
Irish Wind Energy Association
http://www.iwea.com/index.cfm?page=home
Ocean Energy in Ireland
http://www.marine.ie/NR/rdonlyres/86491414-3E7E-48E5-A0E1-287CA9191C61/0/OceanEnergyStrategy.pdf
ECB-IMF deal is a noose that will strangle economic recovery
byMICHAEL CRAGG and JOSEPH STIGLITZ
http://www.irishtimes.com/newspaper/opinion/2011/0409/1224294304548.html
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