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Difficulty: Easy21st-Century Environmental Challenges and Energy Policy

U.S. Renewable Energy Consumption by Source (Trillion Btu), 2000–2020:

YearSolarWindHydroelectricBiomass
200065572,7313,010
20101099462,6024,286
20201,2233,2752,5804,539

Source: U.S. Energy Information Administration

Based on the table, which of the following factors best explains the change in consumption of solar and wind energy in the United States from 2000 to 2020?

  1. The introduction of federal and state tax incentives combined with technological advancements that lowered costsAnswer
  2. B
    The deregulation of the energy sector under supply-side economic policies that eliminated standards for fossil fuels
  3. C
    A shift to a purely laissez-faire market system that eliminated all federal energy subsidies
  4. D
    The adoption of isolationist trade policies that banned the import of foreign fossil fuels

Answer

The introduction of federal and state tax incentives combined with technological advancements that lowered costs
The correct answer is correct because federal policies, such as the Production Tax Credit (PTC) and Investment Tax Credit (ITC), combined with state-level renewable portfolio standards and technological innovations, drastically reduced the cost of wind and solar energy, leading to their rapid expansion between 2000 and 2020.

Step-by-Step Solution

1
Analyze the table to identify the trend for solar and wind energy between 2000 and 2020.
Solar consumption increased from 65 to 1,223 Trillion Btu, and wind consumption increased from 57 to 3,275 Trillion Btu, representing significant growth.
Understanding the quantitative trend is necessary before identifying its underlying historical cause.
2
Identify the historical factors that contributed to the growth of these renewable sectors in the early twenty-first century.
Government policies (such as tax credits) and technological innovation made wind and solar power more viable and affordable.
This links the statistical trend to the historical context of environmental policy and economic changes in Period 9.

Key Concept

The role of government policy and technology in the growth of renewable energy in the 21st century
Estimated Time:1m 0s
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Topics

21st-Century Environmental Challenges and Energy Policy

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