Econ 545: Business Economics Project Two: Microeconomic Analysis

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ECON 545: Business Economics
Project Two: Microeconomic Analysis

Situation B For Situation B, Cindy is looking at investing into the renewable energy industry. She is looking at one section of the industry to invest in, which is that of contracting the installation of solar panels. Cindy, has read, that families and businesses are saving money by going to solar for their power needed. Also, that there are government back regulation to make solar more assessable to people. For Cindy, she is looking pass the business opportunity for installing solar planes, but that this product can reduce pollution and help save the environment.
GDP and Solar Energy In the United States and most nations in the world, energy is vital in keeping society stable and expanding. Energy provides the ability to aid in transportation, activities in daily living and employment. In the United States, $1.2 trillion dollars were spent on energy in 2013 or 8.3% of the GDP. That translates into an annual cost of 3,895 dollars per person was spend on energy consumption. With the great environmental impact seen by the production of energy, there was been more of a call, for renewable energy forms, as that of solar panels. The United States dose consumes 19% of the world’s energy supply and a 19% total of the world’s GPD. With the large needed for energy, companies are looking for new way to produce this produce that cost less and reduces the environmental impact. Renewable energy consumption is projected to increase annually at a rate of 1.6%, on average, between 2011 and 2040, compared to 0.3% growth in total energy. Solar photovoltaic electricity and cellulosic ethanol are projected to grow fastest. However, at these rates renewables would only provide 13% of U.S. energy consumption in 2040, compared to about 9% currently. Residential consumers can receive tax credits for up to 30% of…...

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