Economically research of clean energy in manufacturing industry

The importance of energy has been increasing since Industrial Revolution. After the invention of internal combustion engines and electricity, the civilization started to rise on various energy sources. Energy consumption of developed countries is more than developing countries. World has divided two parts as energy consumer and energy resources countries. The developed countries have taken under control energy sources, in order to supply energy reliability and preserve their advantage position against developing countries. Energy production mainly supplied from fossil fuels in last 150-200 years. But fossil fuels have some damages on environment and human health. Because of these damages there are some catastrophic scenarios about fossil fuel usage. Developed countries are trying to limit energy production from fossil fuels and increase the production and consumption of the clean energy. But at this condition clean energy more expensive than conventional energy sources. In order to induce clean energy investments most of countries give more money for clean energy. It was seen that, economically an expensive energy cannot be clean over the long term. Energy is one of the main inputs of manufacturing industry. If the cost of energy used in manufacturing industry increase, production will decrease. If expensive clean energy is used in manufacturing industry instead of fossil fuels, economy will need to find some extra money to supply this cost differences between clean energy and conventional energy. Therefore there would be more production, as a result of this extra production, there would be more energy consumption. In this research, the result of using clean but expensive energy was analyzed by comparing profit margin and energy cost of production industry.