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The Advantages and Disadvantages of Renewable Energy in the Tourist Destination

Renewable energy (RE) contributes to environmental conservation, CO2 emissions reduction and energy security ; these are all advantages. However, a question arises regarding the aspects of everyday life and the types of economic activities on which renewable energy could have an adverse as well as a positive impact. This papers aims to examine both the advantages and disadvantages of renewable energy within a tourist destination. An analysis is conducted to identify all positive, potential and/or anticipated negative effects of renewable energy within the existing social and economic structure of a tourist destination. On the side of advantages, there are direct (primary) positive effects that can be quantitatively assessed and expressed in value with relative certainty, such as increase in the production of goods and services as a result of building new RE facilities, and benefits from savings on transportation costs. It is harder, however, to quantify or express in value the indirect (secondary) benefits, which most often occur in the form of external economies (external positive effects). Many of these benefits cannot be measured or assessed in value, as for example the increase of local activities, growing competition, importance to national security, enjoying the environment and clean air as a result of reduced pollution, etc. Certain disadvantages such as the expensive production of equipment and materials, impact on the soil or inconsistency can also be hard to quantify. Hence, on both sides there are indirect effects that cannot be measured (intangibles). In this sense and in terms of methodology, the paper has a descriptive, conceptual and analytic cognitive function. Cost-benefit analysis is used to demonstrate RE benefits and costs in the tourist destination. The authors conclude that the introduction of renewable energy contributes to the conservation of economic, ecological and social values and helps to enhance the destination’s potential for economic development and sustainability.

renewable energy, economic development, sustainability, tourism, cost-benefit analysis

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