Environmental Issues

The launching of renewable energy programs has been popular around the world in the hope of reducing the pollution we experience and to produce other sources of energy that could sustain the planets future and provide energy security for the countries that have involved themselves in this industry. Renewable energy replaces conventional fuels in four distinct sectors power generation, hot water and space heating, transport fuels, and rural energy (Martinot, 2007). Promoting the renewable energy industry also served as an additional source for the economic development of the countries where renewable energy businesses persist. The United States of America and Germany are two of the countries that have the biggest and most flourishing renewable energy industry in the world.

Governments of these two countries play significant roles in the thriving of businesses engaged in producing renewable energy. Both America and Germanys have their own distinct models of government and business relations in operating renewable energy industry. In comparing the two countries government and business relationships, it is evident that Germany has a better model than America. Germanys renewable energy industry programs provide much more balance between economic benefits for citizens and the country. The countrys model is also programmed to provide profits and benefits domestically and even globally.

Both Germany and America share a deep and significant background on the development of renewable energy in their lands. These countries have recognized the need to promote renewable energy and as a sign of effective promotion, a few private businesses have begun to engage in the production and cultivation of alternative energy sources. Aside from encouragement and promotion, the biggest influences of governments to the industry are rooted from the policy system formed in the two countries. The policy systems in the two countries are different but they share essential similarities.

America In Focus
The industry of renewable energy is an important need for Americas stability and reinforcement as the most powerful nation in the world. After the oil crises of the 1970s, America realized that the nations dependence on imported oil is undermining the countrys national security and stability by tying its economy to the fate of other nations (Center for American Progress, 2006, p. 8). To establish Americas strength, it is important for the nation have a more secure source of energy that could supply its great demand of fuel and oil. The development of renewable energy has become an amiable goal for both government and private firms that wants to establish energy sources that are replaceable and nature friendly. In America, research and development by both the government and the private sector have yielded a host of promising new technologies that turn abundant domestic energy sources into transportation fuels, electricity, and heat (Center for American Progress, 2006, p. 6). But based on the current status of the industry, private support has still been limited compared to their expected growth.

Americas government policy is a significant factor for the growth of the industry. Government policy can spur advancement in renewable energy technologies and increase their implementation if applied conscientiously (Loiter and Norberg-Bohm, 1999, p. 97). The reception of private businesses remains very minimal compared to those of other countries because of the risks that loom the development of the industry. American government The private sector will not be able to fund significant research and development because of the weakness of the market so public funding is necessary to support the intended researches (Loiter and Norberg-Bohm, 1999, p. 96). This is where government plays an important role. In the renewable energy industry of America, government action influenced the pace and direction of technological change through a combination of supply-push and demand-pull policies (Norberg-Bohm, 2000). Of course, government policies are important to the private sector. In the current model of American government and business relations, the nation is still limited in producing policies that could commercialize the industry locally while at the same time also affecting the international market significantly. The knowledge of how to effectively design policies to stimulate energy technology innovation, with a focus on the role of policy in the commercialization phase is important to America (Norberg-Bohm, 2000, 125).

Americans recognized that renewable energy technologies, combined with substantial improvements in energy efficiency, have the potential to gradually transform the U.S. energy system in ways that will benefit all of them (Center for American Progress, 2006, p. 6). Some of the different kinds of renewable energy that America is currently developing are wind power, biofuel, geothermal, solar power, and hydro power. Noted as a crucial effect of renewable energy production are the environmental impacts that the technology has. Climate changes and environmental problems are some of the biggest dilemmas of the world today. Effective management of climate change requires a radical departure from our current ways of producing and consuming energy (Norberg-Bohm, 2000, 125). Up to now, the natural damage of fossil fuels remains unsolved predicaments to the whole world. America recognized that energy, while traded in the market as a private good, has huge environmental externalities (Norberg-Bohm, 2000, 126). Therefore, developing means of energy being both handed out by government and private businesses would help reduce the environmental consequences of energy production.

One of the biggest and most important effects of the renewable energy industry is the change in the economy of America. The industry had helped the nation in employment and investment opportunities to the people. And though not everyone are qualified to avail the incentives that goes along with the industry, this program had helped motivate people to direct funds to renewable energy development. Also, the industry had produced more occupation chances for the Americans as renewable energy creates more jobs per unit of energy produced and per dollar spent than fossil fuels (Center for American Progress, 2006, p. 10).

Even today, American government is still directed towards the reduction of Americans reliance to foreign supply of oil. President Barack Obama is very insistent in transforming American into a green society based not on fossil fuels but on renewable energy, conservation, and careful restraint in the production and consumption of energy (Walsh, 2009). Despite the financial crisis that the world is facing today, Obama is still insistent to revive and strengthen the programs for Americas renewable energy plans and his government insists that the economic predicament should serve as an important chance for the social transformation that the nation needs.

Other than simply funding projects related to renewable energy production, governments should go beyond their usual role and help promote the commercialization that could expand the industry. A strategy wherein that government is both the producer and consumer, such as in military equipment and space exploration, concludes that effective commercialization depended on government activity to support both supply-push and demand-pull (Norberg-Bohm, 2000, 126). This model of government and business relations dominates the industry of America. To address the declining reception of the private sectors in renewable energy development, the governments must also create markets in which to grow these new industries (Norberg-Bohm, 2000). Research and development is crucial but not enough. Creating markets and promoting the importance of renewable energy is also part of the requirement of governments. One way to do this is to also further improve the fuel efficiency of Americas automobile industry that would adhere to renewable energy programs. Invention of solar powered cars or manufacturing automobiles that run in biofuel are big important steps that could add market to the industry.

Germany In Focus
Germanys industry of renewable energy is noted as one, if not the most, successful model of operation and development for the way the government and private businesses have efficiently produced triumphant programs with benefits that are not only restricted nationally, but even internationally. The biggest difference of Germany to America is the feed-in tariffs policy that is implemented in this nation. The term feed-in tariffs refer to the style of incentives adopted most notably by Germany to increase the adoption of renewable energy resources (Rickerson, Bennhold, and Bradbury, 2008, p. 2). This model is essentially different from the supply-push, demand-pull model observed in America. Germanys model has proved to be better especially in the way the government aids and supports businesses in the commercialization of the industry. Expanded in 2000 to cover all renewable, this energy policy has made Germany the current leader in both solar and wind and has invigorated its biomass sector (Morris and Hopkins, 2008).

The program of Germany to continue improving its production of sustainable energy remains to be same goal of the nation. Government relations are still adamant in its support for the renewable energy industry operation. Based on the model observed by Germany, the nation recognized that to provide the strongest incentive for innovation, policies must provide a consistent and long-term market for wind energy and all other forms of energy (Loiter and Norberg-Bohm, 1999, p. 95).

Compared to other models and policies observed by other nations, the German feed-in tariff has caused explosive renewable energy market growth during the past decade, and Germany is now the worlds largest market for photovoltaic systems and wind energy (Rickerson, Bennhold, and Bradbury, 2008, p. 2). Experts worldwide recognized the distance of the nation in simplifying and improving its energy production compared to America. Germanys green power market has grown steadily since 1998, with more than 750, 000 consumers in 2006 and this success does not remain stagnant but rather continuously expands (Martinot, 2007, p. 28). Also, investors and citizens of Germany also achieve fairer and attainable terms through the feed-in tariffs imposed in the country.

Over the years, the nation remains to have vast improvements in its renewable energy industry. Germany more than doubled its national supply of renewable electricity between 2000 and 2007, and met its 2010 target of 12.5 renewable electricity three years ahead of schedule (Rickerson, Bennhold, and Bradbury, 2008, p. 3). With the positive results that the Germany achieves with its model, especially by the way it provides favourable conditions for investments in green electricity production over the long term of 20 years, more and more nations are becoming more inclined to copy it (Frondel, Ritter, and Vance, 2009, p. 10).

Americas Advantages and Disadvantages
Americas model is not necessarily wrong or hopeless. In fact, the policy of demand-pull can be expected to spur incremental innovation and diffusion in the private sector, further advancing the technology and reducing its cost relative to other forms of generation (Loiter and Norberg-Bohm, 1999, p. 95). With further planning and given more years to grow, America can also have what it takes to lead the renewable energy industry again. However, the nation should learn how to adjust and improve what its model still lacks. Private sectors feel the risk because to produce radical innovation to promote renewable, federal research and development must support these efforts (Loiter and Norberg-Bohm, 1999, p. 95). Therefore, the government should continue giving the programs its support. Also, the industry suffers from the minimal support from its citizens. Few Americans are directly participating in the development and ownership of projects (Mendonca, Lacey, and Hvelplund, 2009, p.3). Markets and energy awareness should continue to be part of the sustainability program of America. Another disadvantage of Americas model is that public agencies often make poor choices in picking which technologies should be developed like the trait of the government in picking winners ((Norberg-Bohm, 2000). This trait often leads to be the pitfall of the industry that hinders them from elevating the developments for better renewable energy programs. And most importantly, experts have noted how U.S. policies have been directed largely toward U.S. firms (Norberg-Bohm, 2000). There is no room for international relations that is why the model is good, but not great. The renewable energy market in the United States is generally an exclusive one (Mendonca, Lacey, and Hvelplund, 2009, p.1). America needs to revise or improve some of its models format because its policies limit and does not equally distribute energy benefits to all people. The next phase of market growth will require a revision of existing tax policies to make them more inclusive or an implementation of new policies that offer citizens greater access to the market (Mendonca, Lacey, and Hvelplund, 2009, p.2)

Germanys Advantages and Disadvantages
In most of the disadvantages that America has, opposite the trend is seen in Germany (Mendonca, Lacey, and Hvelplund, 2009, p.3). The German policy offers more opportunities to its citizens, its investors, and the industry itself. Germanys model is capable of giving their renewable energy industries more generous and longer-term support than does the United States (Martinot, Wiser, and Hamrin). Compared to Americas model, more people are given bigger opportunities in Germanys renewable energy industry. Also, Mendonca, Lacey, and Hvelplund (2009) said if contracts for electricity sales are overly complex, this in itself can present a barrier. The simple one-page German feed-in contracts are a good example of simplicity that are effective in the expansion of the industry (p.18). The only risk of Germanys model is that there is no security over the price for feed-in tariff raises utility bills unnecessarily (Stokes, 2009).

Conclusion
Both America and Germany have positive programs and amiable plans for the industry of renewable energy. Like all the other countries that are slowly involving themselves in the development of alternative energy sources, America and Germanys governments are working together with private firms in promoting the goals of the industry. But of the two, Germany evidently has a better model because it offers benefits to all of its citizens and the rest of the world while the American model is focused on national interests only. Germanys government and business relationship is more simple and long-term while Americas relations are overly complex for it is greatly dependent of the governments actions and focuses on the needs of American firms.