German Energy Policy vs United States Energy Policy
Germany like the United States was highly dependent on non-renewable energy sources until 2007. Following calls from industrial players and various international organizations, the country has changed its policy on energy to focus more on renewable energy sources. This is a move that has enabled the country to source more than 14% of its energy on renewable energy sources.
The United States has however maintained its energy policy that is based on traditional approach. It is a move that has made the country highly dependent on oil importation to fuel many of its industries. This has also caused a negative effect on the country in different views. For example, the US has been spending significant amount of its income in oil importation, coal from overseas and natural gas.
The energy policy in the US has also been identified as one of the policies that have had a negative impact on the environment because it causes degradation in the US and other countries across the globe (Johnstone 135). Germany in the same respect has achieved success in its overall energy policies.
The nation has additionally identified benefits accrued from adopted on renewable energy use. This approach aimed at fueling the economy has also reflected German’s economic strength. As per the year 2013, Germany is an economically stable nation in Europe. Its energy policy also reflects its abandonment of its reliance on nuclear energy. To this effect, the country has deactivated different nuclear plants.
This energy policy also comes with the benefit of ensuring that the country is known as one of those contributing to creation of a safe environment. Environmental conservation has various benefits that are reflected German’s model. For instance, its productivity has been enhanced a great deal and it is beneficial to Germans economy. It has also been identified that the government introduced legislation and policies that are vital in advancing renewable energy industry.
The government has additionally been setting 800m Euros, aside for its scientific research. The ‘’Renewable Energy Sources Act’’ also specifies feed in tariffs that grind operators dues for energy that is fed to power grid (Frondel 4050).
Energy policy in Portugal is also inclined towards application of renewable energy in the industry. Even so, the major difference between the two policies is that Portugal is more inclined towards growing private companies and corporations in their production processes while Germany’s policy is geared towards enhancement of the entire industry.
The approach employed by Portugal does not have a complete involvement of government in energy advancement. This is an approach that can also be attributed to the fact that the government of Portuguese is more inclined to policies that provides the government with industry incentives. In this regard, German’s government is involved directly in funding scientific research.
In relation to economic orientation in the US, the government should however adopt Portuguese policies because they favor the country’s economic system. The US is also characterized by a liberalized economic system, where the state has little or no intervention in its economic activities.
Even though the approach employed by Germany may be beneficial, the US’s current economic system favors Portugal’s approach and it implies that the country will benefit from the model. However, Germans approach will be of great benefit in the long run (Johnstone 144).
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Frondel, Manuel. “Economic impacts from the promotion of renewable energy technologies: The German experience.” Energy Policy 38.8 (2010): 4048-4056.
Johnstone, Nick, Ivan Haščič, and David Popp. “Renewable energy policies and technological innovation: Evidence based on patent counts.” Environmental and Resource Economics 45.1 (2010): 133-155.