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Lecture 2

How Else Did Humans Acquire Energy Before Fossil Fuels?
Mainly animals, wind, water
Resources, like wood, vary considerably from region to region – little wood in deserts
Comparing pre-industrial energy systems at various times, big differences based on
available resources, climate, level of technology, level of organization

What Factors Determine Differences in National Energy Systems Today?
Available resources
Level of income/development
Economic activity mix (manufacturing)
Government policies (subsidies)
Culture, habits, etc
History (house sizes, city structures)

Where do prices come from?
World prices for some inputs
Local resources, costs
Costs of capital, labor
Environmental, other policies

National energy systems are incredibly diverse, with many drivers of diversity – not just resource Growth in energy use, CO2 likely to come mainly from developing nations, esp. China
Geography of the country - ease of importing
How/when country developed - what technologies were available
Population density
Access to the world markets
Culture and habits - Germany recycles - Japan efficiency