TITLE:
Challenges and Opportunities in Energy Economics: Balancing Cost, Sustainability, and Innovation in the Global Energy Transition
AUTHORS:
Nasr Bensalah
KEYWORDS:
Literature Review, Energy Transition, Renewable Energy, Sustainability, Energy Innovation, Decarbonization
JOURNAL NAME:
Modern Economy,
Vol.15 No.11,
November
21,
2024
ABSTRACT: The global energy transition is reshaping energy economics, driven by the dual imperatives of mitigating climate change and ensuring energy security. This paper explores the key challenges and opportunities facing energy markets as they balance cost-efficiency, sustainability, and innovation. Challenges include the high capital costs of renewable technologies, the uneven global distribution of clean energy resources, and the volatility in fossil fuel markets. However, there are significant opportunities in advancing renewable energy technologies, enhancing energy storage solutions, and creating policies that encourage energy efficiency and carbon reduction. Furthermore, the intersection of energy economics with digital innovation—such as smart grids and AI-driven energy management—offers new pathways to optimize energy use and integrate renewables. The successful balancing of these factors is critical to achieving a sustainable energy future that is economically viable and socially equitable. The paper concludes with recommendations for policymakers and businesses to navigate the complex interplay of these forces.