Environmental sustainability
Environmental sustainability refers to making decisions and taking decisions with the aim of protecting the natural world. The main interests for this factor include the preservation of the environment to maintain the aptitude of the environment to sustain human living (Atkinson, Terizakis & Zimmermann, 2011). Environment sustainability supports business and economic growth in any country. The European Union lays massive weight on the emphasis for the sustainability of the environment.
In 2009, the European Commission took a step towards the development of the environment sustainability within the region. It reviewed the European Union Sustainable Development Strategy. This was an improvement of the previous policies of elimination of climate change as well as reduction excessive carbon release to the atmosphere. In 2010, the European Commission aimed for the promotion for clean energy, sustainable consumption and production, conservation of resources, and public health (Atkinson, Terizakis & Zimmermann, 2011).
Externalities for non-renewable energy
Externalities for non-renewable energy can be classified into either environmental or non-environmental. One of the environmental factors is the environmental damage, which is as a result of production and transportation plans. The second factor is the flooding of low elevation areas and increased home and property destruction following adverse climate changes. The third environmental externality is the damage to other human activities like agriculture, fisheries, as well as forestry (Atkinson, Terizakis & Zimmermann, 2011).
Non-environmental factors are represented by the following factors. The first factor is the defense for foreign fossil fuel resources. The second non-environmental factor is the health costs that are associated to pollution like acute poisoning, cancer and chronic conditions. The third externality for use of non-renewable energy resources is loss of jobs. Efficiency and renewable technologies create more employment vacancies per unit of energy than for the case of generation technologies (Books. LLC, 2010).
Renewable energy
This is a form of energy that results from resources that are continually refilled like wind, waves, geothermal heat, and sunlight. This is the most reliable form of energy in most developed countries.
Solar energy
This is a renewable form of energy which comes directly from the sun. Solar energy may be used either directly or indirectly for lighting homes and heating. It is also used for generation of electricity, hot water heating, solar cooling among other commercial and industrial purposes (Books. LLC, 2010).
The sun’s heat plays another crucial role in driving winds, whose energy is captured through wind turbines. Therefore, solar energy plays a critical role in production of other forms of energy.
Solar energy is characterized by several technological developments, which have made it the most outstanding renewable form of energy. One of the latest structures of solar energy technology is the photovoltaic systems. This is a form of technology that produces sunlight directly from sunlight. The other form of technology is the solar hot water, which is based on heating water with solar energy. Solar electricity is the other form of technology where heat of the sun is used to produce electricity. Passive solar heating and daylighting is the fifth form of energy that is making solar energy the most outstanding form of renewable energy. The sixth form of technology in the solar energy sector is the solar process space heating and cooling (Books. LLC, 2010). Many industries have realized that this is one of the most lucrative forms of energy and had to adopt the energy through this technology.
Following the continuous development in this form of energy, a bright future lies ahead on the use of energy by most people in the world. There will be increased installation of these systems in homes as well as industries as time elapses. This is following the economical value of systems installed compared the non-renewable sources of energy. Government’s are is support for this form of energy, and this may make it the most common form of energy in most countries in the globe.
Solar energy in Germany
Germany is a member country of the European Union that has embraced solar energy. This is an industrious country where energy is the main requirement in the running of systems in industries (Books. LLC, 2010). As a result of the increasing demand for solar energy in the country, one of the technologies that have been employed in the nation is the photovoltaic system.
There has been 45% increase in use of solar energy in Germany from the year 2011 to 2012. Over 8 million homes in the country are using this form of energy. Record 1.3 million photovoltaic systems have been installed in the country (Books. LLC, 2010). This shows that there is an extensive opportunity for growth of use of the solar energy in the country. There are numerous industries in the nation, which are likely to adopt the source of energy through technologies like the solar Process Space Heating and Cooling.
Conclusion
Concrete resolutions need be made to make sure that the environment within which people are living is supportive to healthy living. Through sustainable environment, stable businesses and economic growth are realized. In this case, the energy sector needs be taken with massive caution to encourage sustainable environment. Concrete decisions must be made on the most reliable form of energy. It may be non-renewable or renewable. However, renewable sources of energy may be the most favorable. It depicts reliability, and it is cost effective.
Fiscal policy
This refers to the use of revenue in the form of tax by the government through expenditure to influence the economy. Automatic stabilizers and the discretionary fiscal policy are the main fiscal tools, which aid in the improvement of economic conditions of the economy of a given nation. However, there are other vital tools used which includes transfer payments, government expenditure, and taxation.
Discretionary fiscal policy refers to the introduction of advances in the government spending, taxation and transfer for encouraging fast macro-economic growth, reducing inflation while it increases total employment in the economy.
Automatic stabilizers may be defined as the features of government spending and purchases aimed at minimizing the advances in disposable income for individual. These stabilizers are dictated by advances in government policies of purchasing.
When government expenditure and purchases are conducted in a well governed manner, it aids in the development of the government sector as well steady growth of the economy of a country. The purchases on this discussion are money depleted by the administration on goods and services. Expenditure is defined by the budget that the government has already prepared as well as procedures to make investments.
Transfer payments are other significant fiscal policy tools. These are payments that the government conducts without expecting any returns. They include welfare benefits for the poor, social security benefits for the old people and unemployment benefits to eligible unemployed individuals.
German budget deficits
In the recent economic times, Germany has readily violated deficit rules as set by the European Union. The shortfall of the budget in 2011 pitched to just 1% of gross domestic product. This was below the limit that has been set by the European Union in the governance of the budget of given countries.
According to statistics released by the Germany’s Federal Statistics office the country’s deficit have gotten within the limits set by the European Union in 2012. This was as a result of the extensive growth of the economy by 3% in 2011. It boosted tax revenues, reducing deficits which were more than 100 billion Euros in 2010 to 25.8 billion Euros in 2011 (Civitas, 2012).
The European Union Budget
The EU budget last for a period of seven years. The commission proposes the budget, which is later debated by the European Council, as well as the European parliament. The two teams are supposed to vote and agree on the budget. The core elements of the budget are the regional policy, foreign policy, research and development as well as administration. For example, the EU budget set for 2013 IS 150.9 Billion Euros as commitments with the actual payments being 132.8 Euros (Civitas, 2012).
The EU budget is financed through indirect payments of treasuries by member countries. This revenue is classified into three categories. There are traditional VAT based, and GNI based own resources. The traditional method is based on taxes collected on behalf of the EU, which are mainly the import duties for goods sold to the European Union. VAT own resource is in accordance with the contribution of a proportion of the value added tax by each member country. GNI own resources are based on a simple multiplier applied to the economic performance of a member country (Perry, Serven & Suescun, 2008).
The United States fiscal policy
The government of the US spends more money in budgeting than it takes. This is the main fiscal policy that the country adopted by the start of 20th century. Over time, the government has withstood balanced budget, which has been characterized by the public debt. The government has been using tax revenue to fund its budget as well as the sale for treasury bonds (Mühleisen, Towe & Cardarelli, 2004). The fiscal policy for a European member will never exceed what the government has. It is mainly based on the revenue income for the country, which is on the various forms of revenue in the government. This is the main difference between the fiscal policy for the European Union members and United States fiscal policy.
Conclusion
Fiscal policy is a tremendously significant element to any country willing to run a stable economy. It defines how money in the government is spent, which is key to ensure that the government accounts for any element of revenue spent in the country. Fiscal tools are extremely crucial in the balancing or the stabilization of an economy.
References
Atkinson, R., Terizakis, G., & Zimmermann, K. (2011). Sustainability in European environmental policy: challenges of governance and knowledge. Milton Park, Abingdon, Oxon: Routledge.
Books. LLC. (2010). Energy in Germany. S.l.: General Books.
Civitas. (2012, December 18). EU Facts: EU Budget. CIVITAS: the Institute for the Study of Civil Society. Retrieved February 3, 2013, from http://www.civitas.org.uk/eufacts/OS/SF1.htm
Mühleisen, M., Towe, C. M., & Cardarelli, R. (2004). U.S. fiscal policies and priorities for long-run sustainability. Washington, DC: International Monetary Fund.
Perry, G., Serven, L., & Suescun, R. (2008). Fiscal policy, stabilization, and growth prudence or abstinence?. Washington, D.C.: World Bank.
