Kristin Young Benny Garcia Ryan Krummen Allison Munson

1. A Plugged In Society: The Economic Injustice of Electricity Kristin Young Benny Garcia Ryan Krummen Allison Munson

2. 1000 800 Electrical Production & Economic Growth in Sri Lanka 600 Real GDP Sri Lanka in Millions (Rs) Electricity Produced (kWh) 400 200 0 1960 1970 1980 1990 Year GDP and Electricity Growth Rates • An extra economic output of 88000 to 137000 Rupees is predicted for every 1MWh increase in electricity supply. That’s 1000 to 2000 USD for the amount of electricity costing around 125$. • 13 to 1 Profit Margins

3. Unemployment

4. Inequality of Growth Distribution of income • Percentage of people living in the country on 1 US dollar per day grew from 3.8% in 1990 to 5.6% in 2002 • Income of the bottom 20% of nation shrunk from 9% to 7% as well

5. Economic Resolutions • Minimum wage • Union Rights • Universal Healthcare • Social Welfare Programs • Government Spending & Subsidies GDP Per Capita in Billion (USD) Unemployment USA:53,000 5% UK:40,000 5% Sweden: 46,000 7% Germany: 46,000 4%

6. Life Without Electricity • According to The Washington Post, 1.3 billion people are living in the dark and lack access to electricity. • 25 percent of the population of all developing countries do not have electricity. • The areas most affected are sub-Saharan Africa with 600 million people and 300 million people in India alone. • 7 out of 10 people in these sub-Saharan regions do not have access to electricity. • Without energy there can be no economic development.

7. Electricity Availability • Estimated population according to the “Population Reference Bureau” • 355 million in the Middle East • 630 million in Latin America • 1.2 billion in Africa • 4.4 billion Asia

8. Populations without electricity • Estimated populations without electricity according to “The World Energy Outlook (WEO)” • 17 million without electricity in the Middle East • 22 million without electricity in Latin America • 526 million without electricity in Developing Asia • 635 million without electricity in Africa

9. GDP per capita Differences • OECD (Organization for Economic Cooperation and Development) 34 members: Australia, Austria, Belgium, Canada, Chile, Czech Republic, Denmark, Estonia, Finland, France, Germany, Italy, Japan, Mexico, Norway, Poland, Portugal… • MENA (Middle East and North Africa) countries: Algeria, Egypt, Iran, Iraq, Israel, Jordan, Lebanon, Syria, Libya… • OECD members/countries in 2013 had a GDP per capita of 3797990 US dollars • MENA countries in 2013 had a GDP per capita of 873780 US dollars

10. Electricity Consumption and Economic Growth • Research studies over the relationship of Electricity Consumption and Economic Growth • Study done by S.-H Yoo who took ASEAN (Association of South East Asia Nations) countries was done to find a relationship between GDP and Electricity Consumption • Yoo used Granger-causality, co-integration and standard Granger-causality test methods to obtain their data • Yoo found that “there was a bi-directional causality between Electricity consumption and Economic Growth. • Suggesting that there is a significant relationship between Electricity Consumption and Economic Growth

11. Further Research Studies • A study done by Sheng-Tung Cheng, Hsiao-I Kuo and Chi-Cheng over 10 Asian countries was done to see the relationship of Electricity Consumption and Economic Growth. • They used methods such as co-integration and error correction models on single countries data set to obtain their data • They found that “GDP and Economic Consumption move together in the long run, indicating that there is a long-run steady-state relationship between GDP and Electricity Consumption”.

12. Research Studies cont. • A study done by Paresh Kumar Narayan and Russell Smyth was done to find if there was a relationship between Electricity Consumption and Economic Growth on Middle Eastern countries • Narayan and Smyth used Granger causality, long-run structural estimation, panel co-integration and panel unit root methods to obtain their data • Narayan and Smyth found that “a 1% increase in Electricity Consumption increases GDP by 0.04%”. • Narayan and Smyth found that “a 1% increase in GDP generates a 0.95% increase in electricity consumption”.

13. Preventing Electricity Monopolies • Electricity monopolies cause a rise in price due to lack of competition • Electricity is often provided by an assigned local company • Because consumers only have one option, electricity companies can set prices as high as they can get away • By allowing consumers to choose their provider, it drives the price down and creates a price that is realistic to the area

14. Wind Energy • Wind energy could become a wonderful source of power in rural areas. Turbines can sit on top of animal farms and alongside coasts for maximum potential. • Wind energy is considered one of the cheapest renewable energy sources • The South African Wind Energy Association stated that 110,000,000 was “[t]he amount of Chinese homes powered by wind energy (total capacity 114,609 MW) at the end of 2014” • South Africa is currently raising the amount of power the country gains from wind energy

15. Solar Energy • Solar energy is expanding in India due to the rise in large international companies within their megacities • An Indian company called SunSource Energy is currently working with the government as they attempt to make solar energy meet 20% of the country’s energy source • The use of solar energy amongst companies decreases the fight amongst consumers. Currently, there is not enough energy to meet the demand. This raises the cost of energy and decreases it’s availability to the lower classes

16. Creating a desirable area for private sector businesses • 1. Governments need to work with foreign and domestic companies by advertising brand new markets • Cheap labor. In addition to advertising as untouched markets. • Cheap labor = lower prices and more people that can act as consumers. • Industries: Large new markets, cheap labor, potential to offer lower prices to gain even more consumers • Countries without or have limited energy: New technology, better education, longer business hours, more jobs, no or little profit off electricity but can expect economy improvements from the result of technology • Origin country of incoming industry: More money coming into their country as a result of increases in business revenue, more money being spent- trickle down effect

17. Current Events • In India, the installation of nearly 5,000 wind turbines have employed over 900 people. The goal is to supply Kenya with 15% of the electrical needs who is plagued by unreliable and expensive energy sources. • Lake Turkana Wind Power Project is the development of Africa’s largest wind farm and ill produce a fifth of Kenya’s total energy. This wind farm is set to be finished by 2017 and raise economic status and provide universal access for impoverished Africans. Additionally, this farm will provide 2,500 part-time construction employees and 200 full-time employees when completed.

18. Work Cited • "2015 World Population Data Sheet – PRB.org." 2015 World Population Data Sheet – PRB.org. N.p., n.d. Web. 17 Apr. 2016. • "Energy Access Database." IEA -. N.p., n.d. Web. 10 Apr. 2016. • Morimoto, Risoko, and Chris Hope. The Impact of Electricity Supply on Economic Growth in Sri Lanka. Cambridge: U of Cambridge, Judge Institute of Management Studies, 2001. Print. • Paresh Kumar Narayan, Russell Smyth, Multivariate granger causality between electricity consumption, exports and GDP: Evidence from a panel of Middle Eastern countries, Energy Policy, Volume 37, Issue 1, January 2009, Pages 229-236, ISSN 0301-4215, http://dx.doi.org/10.1016/j.enpol.2008.08.020. • Sheng-Tung Chen, Hsiao-I Kuo, Chi-Chung Chen, The relationship between GDP and electricity consumption in 10 Asian countries, Energy Policy, Volume 35, Issue 4, April 2007, Pages 2611-2621, ISSN 0301-4215, • S.-H. Yoo, The causal relationship between electricity consumption and economic growth in the ASEAN countries, Energy Policy, Volume 34, Issue 18, December 2006, Pages 3573-3582, ISSN 0301-4215, http://dx.doi.org/10.1016/j.enpol.2005.07.011. • SAWEA: South African Wind Energy Association. SAWEA, n.d. Web. 09 Apr. 2016. • "Sri Lanka Unemployment Rate | 1996-2016 | Data | Chart | Calendar." Sri Lanka Unemployment Rate | 1996-2016 | Data | Chart | Calendar. Web. 19 Apr. 2016. • The World Bank. N.p., n.d. Web. 14 Apr. 2016. • Verma Lal, Preeti. "How SunSource Energy Emerged as One of the Key Players in India's Solar Energy Space." The Economic Times. The Economic Times, 6 Mar. 2016. Web. 09 Apr. 2016.