Clean Energy Investment in China
Introduction
The research will shed light into the necessity of implementation of clean energy initiatives in China. This necessity is caused by the recent climate changes and depletion of natural resources. This issue needs to be justified in more details. However, this process cannot be chaotic. It should be directed and managed. One of the most effective managers in the case under consideration can be the government. One of the functions of the government is to protect the interests and well-being of customers. This well-being significantly depends on surrounding natural environment.
It is common knowledge that recently, the number and severity of climate cataclysms has increased dramatically. There is a range of factors that have caused such growth. Among them, the following factors may be pointed out: more frequent extreme weather events related to global warming and climate changes caused by it; high temps of technological development of civilization and its negative impact on the natural environment; population growth and factors caused by it (for example, urbanization and pressure on natural resources); cyclical features of the development of our planet, which change the natural course of events time from time, etc.
The world has faced a significant problem in the recent decades. Temps of growth of the world’s industry and society, in general, force people to consume more and more energy. On the other hand, the sources and size of this energy are quite limited. Nowadays, the demand on oil exceeds its supply. As a result, prices will definitely be increased in the nearest future. This opinion can be proven by the following words.
The report states that the age of cheap oil has ended now. The demand begins to outstrip supply since we head towards the middle of the decade. Based on the recent research, this suggests that the estimates of current oil reserve have to be lowered from 1150-1350 billion barrels to 850-900. (University of Oxford 2010)
Another problem related to the energy policy is the problem of its overconsumption. Modern industry consumes too much energy. As a result, its stocks are decreasing pretty fast. The other side of this problem is that such a tremendous consumption creates a great pressure on the natural environment. For example, overconsumption of energy is considered by a lot of experts as the main reason for the global warming.
Global warming leads to the range of really negative consequences, among which natural disasters are the most common. Among these natural disasters, the following ones may be differentiated: earthquakes, hurricanes, tsunami etc. In general, global warming is the main danger for the existence of mankind.
The mentioned two groups of reasons create the necessity for invention and usage of the alternative sources of energy. Among such sources, the following ones may be pointed out: solar energy, wind power, hydropower, biofuels etc. That is why options for the implementation of these alternative sources have become the direct objectives of the energy policies of the countries in the recent years.
Moreover, nowadays, society is forced to consider the so-called sustainable energy policy. Simply speaking, sustainable energy policy is a policy of extraction and consumption of energy in such way that decreases pressure on the natural environment and provides restoration of the sources of energy.
Topic and Rational
The task of this particular part of the research is to explain the reasons why a particular topic has been chosen. The reasons why the topic of clean energy investments in China has been chosen can be divided into two groups. The first group is the so-called personal reasons. First of all, it is the difficult situation with the world’s natural environment. One of the main negative features is overconsumption of natural resources. Such overconsumption endangers the future of this and the next generation. That is why every person should be interested in a piece of contribution to looking for solutions to this problem. Second, the research topic is really interesting and actual. As a result, it is a great opportunity to develop research and analysis skills. Respectively, not only the results of the research can be used in the future, but also developed research skills can be used in further studies.
The second group of the reasons to choose the topic is the so-called business goals. Clean energy investments have not only social and environmental effect. They can also be an interesting and very profitable business idea. It can bring a lot of money to investors. Especially, it will be profitable at the first stages of development of clean energy project. Thus, it is very important not to miss the moment to enter the industry.
Research Objectives
The following task is to define the main goal and mission of the research. The main goal of the research is to justify the necessity of development of clean energy production not only in China but in the whole world in general. The goal is to show the mechanism that will make such investments and production not only environmentally and socially effective but also profitable. According to the main goal of the research, it is going to have the following objectives:
1) To justify the necessity of development and implementation of clean energy production.
2) To show how implementation of clean energy initiatives may affect social and environmental conditions of the global society.
3) To develop the mechanism that will provide the most effective way of implementation of clean energy initiatives;
4) To evaluate social and economic efficiency of such projects.
Methodology and Research Methods
Naturally, in order to reach all the mentioned goals and objectives of the research, it is important to have an appropriate methodology. One of the most appropriate definitions of the term methodology is the following.
Methodology is a system of broad principles or rules from which specific methods or procedures may be derived to interpret or solve different problems within the scope of a particular discipline. Unlike an algorithm, a methodology is not a formula but a set of practices (Business Dictionary).
Simply speaking, methodology is a set of instruments that help us to reach the stated objectives of the research. Methods can be divided into two groups. Universal methods are used in the different researches with the different objectives. Among the universal methods that will be used in our research the following ones may be pointed out: induction, deduction, logical and historical analysis, synthesis and analysis. Specific methods are used in the different industries according to the specific objects of the research. For example, economic and investment analysis in order to evaluate particular projects of implementation of clean energy projects will be used in the research. Also, the efficiency of governmental policy in the industry will be analyzed. As it has been said, government always plays an important role in such projects. That is why it is essential to evaluate social, environmental and economic results of such policies since citizens finance it as taxpayers.
Every research consists of three main stages: research strategy and the underpinning philosophy, the research design and the data collection methods. Every stage has its own set of instruments and methods. Research strategy depends on the missions and objectives of the research. The strategy is not to create some theoretical framework but rather to provide practical recommendations how to improve the problem under consideration. As a result, philosophy of our research is rather practical than theoretical. The research design, first of all, includes classification of stages of the research, setting some particular deadlines and choosing the most appropriate instruments to reach the stated objectives.
Finally, data collection methods and tactics should be considered. The main informational sources that will be used in the research are the following: industry and economic analysis, statistical databases, ecological overviews, financial statements and investment plans of related companies, theoretical literature, and previous researches of some other resources on this subject. The following methods of information analysis are going to be used in the research: interviews and questionnaires, analysis of financial and statistical information, retrospective analysis, etc.
Talking about methodology, it is also very important to forecast possible limitation on the way to the final goal. The main limitation is of course lack of available and reliable information. Companies that realize such projects are not very interested in making this information public since they may lose some commercial advantage. Second, not every company is ready to accept some questionnaires and interviews. That is why it may be difficult to get appropriate feedback. Finally, the research may put forward difficult methodological challenges. Investment analysis may be very difficult especially in the context of lack of reliable information.
Alternatives Ways to Undertake the Research
Apparently, all the stages of the research and its tasks are going to be performed independently. However, there are some alternative ways of making the research. For example, it is possible to simply synthesize the previous researches on this subject and make some conclusions and recommendations. Also, the main attention may be paid to simple numerical investment analysis. It is possible to get rid of theoretical concepts and pay the main attention to the investment analysis. However, the mentioned alternative approaches are not complex. The topic under consideration is very important and requires complex approach, which will be used in the research.
Ethical Issues of the Research
Any research, especially in the business area, has some specific ethical issues. The research is going to face the similar problem. There are two opposite opinions and approaches to the problem under consideration. Supporters of traditional sources of energy believe that there is no need to develop alternative sources of energy. As a result, they are reluctant to initiatives in this industry. The opposite camp supports the development of clean energy projects. Each of the mentioned parties is interested in a particular outcome of the research. That is why they may influence a researcher. Also, it is important for a researcher to remain independent and create really reliable research. This research should be used to improve the conditions of society but not bring benefits for a separate person.
Development Plan of Actions
The final stage of the research proposal is to develop plan of actions. In fact, the plan of actions can be presented in the form of stages of the research. The research under consideration is going to have the following stages:
- Creation of research mission, objectives, strategy and plan.
- Development of the most appropriate research methodology and instruments.
- Collecting of needed data and information to reach the research objectives.
- Analysis of theoretical concepts and previous researches on the subject under consideration.
- Analysis of data and information.
- Creation of a final model.
- Making conclusions and recommendations how to improve the problem, which is the object of the research.
Summary
The main task of this paper was to develop research proposal and method justification of the research related to the analysis of clean energy investments in China. It has been proven that such initiatives are very important not only for the country but for the whole world in general. That is why it is very essential to realize such initiatives. They require appropriate justification in order to be accepted by businesses and society in general. Such a justification can be reached via this research and the similar researches. As a result, the research has rather practical than theoretical character. The final goal of the research is to provide recommendation how to improve the problem under consideration. probably, the research may be used by some particular company or even governmental institution.
