Laws of Economics in the Global Energy Market, Research Paper Example

The economy generally operates on several concepts. Some of the concepts are the wants, needs, and scarcity just to mention but a few. Wants are simply the citizen’s desires, where it is a means of expressing a need that is perceived (Goldthau, & Witte, 2010). On the other hand, need are the requirements that are basic to human survival such as food, shelter and water. Finally, another pertinent factor is the scarcity. Scarcity according to experts is a fundamental problem that is economically- related and faces all societies. Primarily, scarcity entails the ability for the limited wants to satisfy the unlimited wants.

Nuclear energy, on a global level is also facing all the above economic factors. It is pertinent to note that nuclear energy is an atomic nucleus. However, atoms are what all objects in the universe are made of. Significantly, it is wise to note that the energy of the nuclear is responsible in the production of the electricity, although the release of energy is what brings about the production of electricity by the nuclear. The energy can be released from the atom in two ways as per the scholars. One of the ways is by the use of nuclear fission, and the other way is by nuclear fusion. After the split of atoms to smaller parts by the use of nuclear fission, energy is released. Here it is worth noting that nuclear power firms in most cases use nuclear fission to produce electricity. Here above is how nuclear energy is formed. Nuclear energy is scarce as per the economic basic concepts stated above. Therefore, the above scarcity makes most of the firms worldwide to increase the cost of production. Due to the trend of nuclear scarcity in the market, the nuclear production plants have been incurring a higher cost of production.

Another pertinent issue is the demand and supply determinants. For nuclear production, some of the determinants of demand are change in the number of users, change in consumer test where they tend to use another form of energy for the production of energy. Another determinant is the income of the consumer primarily on electricity. Lastly, the change in consumer expectations can affect the production of the electricity. Here, the electric production plant can change its production due to consumer adjustments in the use of the power. The above affects the demand of the nuclear energy in the global market trends.

On the contrary, on the side of supply of the nuclear in the market, the supply determinants are as follows. Therefore, some of the determinants that cause a shift in the supply of nuclear energy is as follows the change in the input prices by the local electricity production plant. Change in technology as well as subsidies and taxes that are imposed on the nuclear globally. In addition, the change in producer expectations, the number of suppliers and price of the other energy releasing plants will drastically alter the market trend of energy. Therefore, determinants of supply and demand, to a greater extend can alter the market trend of nuclear.

Considerably on the side of the market outcome, it is pertinent to note that outcome of market to a greater extend to usually affect the viability of any given commodity. However, on the side of nuclear energy it is also important to note that market outcome will trigger its stability either in positive or negative position. According to research, it is vital to heed that several reactors that have been emerged mainly in BRIC countries (Lesage, 2010). Some of the countries are the India, China, Russia and Brazil just to sample but a few. The above will make the nuclear trend in the market to go as high as a trillion dollars as argued by the world association of nuclear plants. However, to crown it all, it is pertinent to note that market outcome, to some extend affects the trend of nuclear energy in the market. Last is the elasticity and equilibrium. According to the experts, equilibrium is a pertinent factor in the in the market trend of under the nuclear energy globally. Some countries like Russia and South Korea has richly invested in nuclear, which causes an effect on the equilibrium of the nuclear energy in the market trend. When one side of the world is more developed in a certain area for instance here the nuclear energy, it means that the equity will be triggered where the developed side will benefit a lot from the energy as opposed to the other places. Another factor is the elasticity. Here it is evident according to the statistic that the elasticity of the market trend affects to a larger extends the circulation of the nuclear energy. According to research, it is pertinent to heed that energy elasticity will always favors country like Russia since it has established its nuclear energy well and that the production of electricity throughout the year instead.

Considerably it is wise to note that renewable energy is one of the alarming issues in the whole world. It is worth noting that some special language as the TJC’s can aid in the adoption and translation of the above by concerned companies. Importantly, the above language helps in the implementation of the green technologies. Green technology involves industries such as the solar power, Bioenergy and wind power which are basically the renewable energy and to some extent they tend to replace the scarcity of non-renewable energy in the market. The above, literally facilitates the demand and supply, equilibrium, scarcity and the market outcome of energy in the market (Sioshansi, 2008).

Assessment of the renewable varies with that of non-renewable simply because in most cases the renewable energy is cheaper to produce than the non-renewable. For nonrenewable energy, it is clear that opportunity cost is higher as opposed to renewable energy. The above goes further to affect the outcome of the energy in the global market. In other words, the renewable energy has been incorporated with the incremental decision-making. The above one of the factors that determines the price of the producers and consumers imposed to the energy.

In summary, nuclear energy is very essential when it comes to the electricity production. At the same time, it is affected with the basic concepts of commerce for instance the scarcity, supply and demand determinants and the market outcome as stated above. Some countries like Russian, China, and advantages since they have all that it takes to produce a customer favorable kind of energy. Nuclear energy is being an atomic substance, has greatly affected the market trend with the scarcity nature and current market outcome. However, atoms being a nuclear, it is true that all objects in the universe are made of it. On the contrary, due to its scarcity, it has become as the most expensive form of energy.

References

Goldthau, A., & Witte, J. M. (2010). Global energy governance the new rules of the game. Berlin [Germany: Global Public Policy Institute.

Lesage, D. (2010). Global energy governance in a multipolar world. Farnham, Surrey, England: Ashgate.

Sioshansi, F. P. (2008). Competitive electricity markets design, implementation, performance. Amsterdam: Elsevier.