The Energy Market Nexus to Environment
Subject Areas : Agriculture Marketing and Commercialization
1 - Adhiparasakthi Agricultural College, G.B. Nagar, Kalavai, Ranipet - 632 506, Tamil Nadu,
India,
Keywords:
Abstract :
With the decline of hydrocarbons, there will be a shift towards new dependencies on critical minerals and technology. Additional investment is necessary for minerals that power the energy transition, such as lithium, copper, cobalt, nickel, and rare earth elements. The geopolitics of resource policy will be affected by their supply sources and demand centers' new vulnerabilities and economic and geopolitical advantages. On the other hand, the diversification of supply chains and the sacrament of critical minerals and energy from domestic or friendly sources will be increasingly pursued by governments. Policy and the success of energy transition projects depend on the influence of wider environmental, social, and geopolitical considerations. The 'first fuel' is often referred to as reducing energy consumption through more efficient usage because it effectively cuts demand, is quick to implement, and offers cost and climate benefits. To lessen the impact of higher prices on end users, many countries are opting for subsidies like tax breaks, price caps, or discounts. Spain, for instance, has placed price restrictions on fuel and household energy use, while the UK has reduced taxes on road fuel and provided discounts on gas and electricity. Efficient measures will be negatively impacted by these policies without checks, as they will strengthen demand and exacerbate market shortfalls. To protect lower-income consumers and avoid encouraging more consumption, smart subsidies should be used.