Wednesday, June 30, 2010

THE ENERGY DEBATE MAY END HERE





Decentralization which goes in favor of market, means survival of the fittest, will flush out competition sooner or later, and is not very different from centralization, again, a kind of monopoly, in which government dictates the terms and often revenues are important. But, actually, they are revenue minus subsidy or subsidized-revenue. So, the price movements of all the firms are almost predictable, upwards or downwards, mostly upwards and rarely downwards, depending on the consumption patterns responsible for business-cycles and of-course during recession they go down, but India wasn’t severely hit so the effect was almost negligible. And, also because lower levels of demand as compared to developed regions of the world. But it won’t be like this too long and i’am sure I will not. Cartels are also responsible for similar price movements, and, for a common man that’s why they are cartels. But, market, as mentioned above, means survival of the fittest, where survival is not a very difficult term to understand but “fittest” need some explanation. It refers to, as far as, i think, most efficient – lowest cost, lowest price, and content with the margin as long cost does change wile maintaining a capacity (a sub-optimal point, for economists) –firm. Capacity to absorb demand side shocks. And, such a thing is possible only under Perfect Competition, for layman, price-competition with maximum number of firms. Actually, as far as, the regions enjoying monopoly over energy-resources are relishing nature’s monopoly, and as a, whole we are all doing the same. But nature has also suggested the use of JATROPHA ;ent of India, Dr. Abdul Kalam, is one of the strong advocaters of Jatropha cultivation for production of bio-diesel.[4] In his recent speech, the Former President said that out of the 6,00,000 km² of waste land that is available in India over 3,00,000 km² is suitable for Jatropha cultivation. Once this plant is grown the plant has a useful lifespan of several decades. During it life Jatropha requires very little water when compared to other cash crops. For plan for supplying incentives to encourage the use of Jatropha has been implemented.”



“ http://en.wikipedia.org/wiki/Energy_policy_of_India#Bio-Fuels”
“The hardy Jatropha is resistant to drought and pests, and produces seeds containing 27-40% oil [2](average: 34.4% [3]). The remaining press cake of jatropha seeds after oil extraction could also be considered for energy production[4].”



“ http://en.wikipedia.org/wiki/Jatropha”
The plan to use Jatropha should outpace our regular plans and policies, if the debate has to end.

LET’S BE HOPEFULL!!!

No comments:

Post a Comment

"Everybody is worried about rate cuts and nobody for lower interest rates on savings, when all save and few borrow..."

Growth is sacrificed when the value of the money is sacrificed because spending goes down due to inflation, and people buy less due to high ...