Economic Advantages of Renewable Resources in Business Businesses must evaluate their decision making and outcomes for economic benefits that impact profit

Subject:EconomicsPrice: Bought3

Share With

Economic Advantages of Renewable Resources in Business

Businesses must evaluate their decision making and outcomes for economic benefits that impact profit. Conventional sources of energy like natural gas, oil, propane, and electricity (generated by fossil fuels) are readily available, but the prices can fluctuate greatly. Natural gas, oil, coal, and propane are considered commodities that are traded on international markets. Social conflicts or poor weather conditions near extraction of these commodities can cause prices to rise, which can be difficult for businesses and can be devastating economically.

 

What other options do businesses have for their energy needs? Businesses can choose renewable and sustainable resource technology for energy. Businesses demand large amounts of energy, so large amounts of the budget may be allocated to pay for energy. Businesses must make smart economic choices. Renewable resource technology can provide economic advantages over conventional sources for business through (Folk, 2019):

· Creating jobs

· Generating income from renewable energy sales

· Reducing energy costs

· Increased property values

· More stable costs of energy

· Enhanced public relations

 

Renewable resource technology comes in the form of solar, wind, ethanol/biofuels, hydroelectric, and geothermal. As a business investment, renewable energy is a smart choice. According to Folk (2019), more than ten million workers are in the renewable resource technology sector worldwide. The growth of jobs in this sector for solar panel installers is predicted to grow by one percent from 2016 to 2026 (Folk, 2019). Wind turbine senior technicians are expected to grow by 96 percent in the same time period (Folk, 2019). By implementing renewable resource technology, businesses contribute to the demand of personnel to install and maintain this technology.

 

Generating energy for a business can bring in income if the amount of energy generated is greater than what the business needs. For farmers who chose to turn farmland into solar or wind farms, the income from selling the power to local utilities can be profitable (Folk, 2019). Farmers also can generate income growing crops for biofuels (Folk, 2019). Energy companies, like Duke Power, purchase excess renewable energy from businesses to supply power on their grids (“Generate Your Own,” n.d.).

 

Businesses invest in renewable resource technology to reduce energy costs (Folk, 2019). Using renewable resources can reduce energy costs for businesses to zero (Folk, 2019). Many companies have made a commitment to use renewable energy instead of conventional sources.

 

For companies like Intel, Kohls, Walmart, Target, and Apple, the cost savings from using renewable energy is considerable (O’Conner & McElfish, 2019). These companies want to reduce the cost of energy because it can be a large part of the budget. The main reason for investing in renewable technology can go beyond the budget including the desire to be a good corporate citizens and fight climate change (O’Conner & McElfish, 2019).

 

Investing in renewable resource technology can increase business’ property values (Folk, 2019). Commercial property can increase in value and sell faster when equipped with renewable resource technology (Folk, 2019). The choice for a business to add renewable resource technology should be evaluated carefully, as different areas of the country are more suitable for this technology. Solar technology in an area that does not get much sunlight would not be beneficial. Wind technology in an area that does not have constant wind would not be a good investment.

 

The cost of conventional energy fluctuates depending on demand, supply, world events, and weather as discussed previously. Businesses must budget yearly for energy costs. Budgeting can be difficult if the price fluctuates constantly. With renewable resource technology, the cost of energy is stable. For some businesses, the cost of energy may be zero (Folk, 2019). However, businesses should budget each year for maintenance and improvements to the renewable technology installed.

 

Investing in renewable technology can bring attention to the business from customers and investors. Carbon emissions from conventional energy are concerning and have an impact on the climate (Folk, 2019). Businesses that invest in renewable technology are recognized locally and even nationally. This recognition can draw attention to the business from customers and investors who want to support the reduction in emissions.

 

In summary

· The economic benefits to businesses from renewable resource technology are:

· Profits from selling renewable energy sources

· Reduced energy costs

· Increased property values

· Stable costs of energy

· Increased positive public reputation

 

1. Creating Jobs - More than ten million workers are in the renewable resource technology sector worldwide.

2. Generating Income - A business can bring in income if the amount of energy it generates is greater than what it needs.

3. Reducing Costs - Using renewable resources can reduce energy costs to zero (Folk,2019)

4. Increasing Property Values - Commercial property can increase in value and sell faster when equipped with renewable resource resource technology (Folk, 2019).

5. Stabilizing Energy Costs - The cost of conventional energy fluctuates depending on demand, supply, world events, and weather. The cost of renewable resource energy is stable.

6. Enhancing Public Relations - Businesses that invest in renewable technology are recognized locally and nationally.