II. Contemporary Energy Use

Frederic Menz, a professor of Economics and Finance at Clarkson University, analyzed the impact of renewable energy policies and the relative adoption of those types of energies. He notes that at one time, conventional wisdom suggested that renewable energy sources would gain primacy due to the “rising costs for fossil fuels, growing concern about environmental issues, and national security concerns with imported oil” (Menz, 2005). However, the reality has been “virtually constant” production of electricity from renewable sources, with “coal and nuclear responsible for about two-thirds of net electricity generation in the United States for the last several decades” (Menz, 2005). As regards adoption of solar photovoltaic technology, some argue that its deployment has been tailored towards “a conglomeration of regional markets and special applications” for which significant production will remain elusive until standardized practices of connecting it to existing grid technology are established (Shum & Watanabe, 2007). The stunted deployment of renewable energy technology and failure to meet expectations for growth to surpass fossil fuels, are argued to be due to conventional fuel subsidies that “actively discourage consumers from seeking cleaner alternatives, encourage the overconsumption of resources… and lead to capacity development and consumer patterns in excess of true needs” (Sovacool, 2009). With significant conventional fuel subsidies intact, the demand for renewable sources will invariably be deflated unless government policy shifts to promote a more level playing field.

Likely due to the cushion afforded by conventional fuel subsidies, the outlook for renewable energy production has not been stunning. At the time when Menz was completing his research, the U.S. Department of Energy projected relatively stable shares of energy