Large Investments to Find Renewable Energy Sources

http://www.cbc.ca/news/story/2007/11/27/tech-google.html#skip300x250

Introduction

Google Inc. has announced that it will invest tens of millions of dollar in the search for renewable energy sources in 2008. Although the company plans to focus on solar thermal technologies, wind power technologies, and enhanced geothermal systems during the next year, Google Inc. also plans to devote a part of its research in smaller breakthrough energy projects. Currently, Google Inc. is investing in two companies conducting research in this area, namely eSolar Inc. and Makani Power Inc. Finding new ways to produce electricity will help lower the cost of the enormous amount of energy required to run Goggle’s data centers around the world.

Connection: Scarcity, Direct Costs, and Opportunity Costs

Today, coal is a major supplier of the world’s energy. However, since coal is a scare resource, a situation such as that caused by diminishing fossil fuels may begin to arise. Secondly, as coal becomes more scare, energy which requires coal to function will become more expensive. By investing in energy from renewable resources such as solar and wind power, the prices of these energies are less likely to rise since the sources are not scarce. This situation can also be related to the concept of direct costs and opportunity costs in this chapter. The direct cost is the money needed to conduct the research. The opportunity cost on the other hand is the money which Goggle Inc. could have earned with the tens of millions of dollars, including interest money. However, if finding a cheaper way of producing energy from renewable sources proves to be successful, the money that could be saved on energy costs could potentially be far greater than the money that could have been invested from the tens of million of dollars.

Reflection

Lately, the research for renewable resources has been becoming increasingly popular. There are frequently new commercials discussing the importance of investing in this area. In my opinion, Google Inc. made a good decision in devoting a portion of their fortune to find a renewable resource. If successful, this research will greatly benefit mankind. Soon, the resources which are providing the energy we are currently using will run out. At the moment, coal is the greatest provider of the world’s energy. Coal however, creates many unwanted greenhouse gases. Turning away from coal as an energy resource will lower gas emissions, help fight global warming, and reduce the world’s dependence on fossil fuels. New research in renewable energy sources will bring us to a greener and more pleasant future.