International Renewable Energy Economy Energy is a fundamental component of every economy and society around the world. Energy is divided into two groups, non-renewable (coal, oil, natural gas and nuclear) with a limited amount present worldwide and renewable (hydroelectric, tidal, solar, wind, geothermal and biomass) which is constantly replenished in so that they will never end (Green Energy Choice, 2011). The international economic impact of renewable energy is explored by examining subsidies, strategic policies, and the comparative advantage of renewable energy. Subsidies Renewable energy in its various forms can be over 5 times more expensive than conventional types of fossil fuel power generation, and none are more expensively efficient than most forms of natural gas or coal power generation ( US Department of Energy, Levelized Cost of New Generation Resources in the Annual Energy Outlook 2011, 2011). In an effort to promote renewable energy, governments around the world have pledged their commitment to the development of renewable energy in the form of subsidies. Feed-in tariffs have become a popular way to promote renewable energy for many governments at all levels. Feed-in tariffs work by setting a rate at which renewable energy producers will be paid for the energy over an extended period of time, and local utilities are required to accept all renewable energy into their network at the set payment rate ( Mendonca & Jacobs, 2009 ). Feed-in tariffs have been so successful because they are inclusive of all types of renewable energy, provide a fixed fee to pay for cost analysis and have no impact on real costs for governments because end users pay for the program in real time. form of high energy costs (Me...... middle of paper ......nt/article/2010/09/03/AR2010090302200.htmlSkynews (7 January 2009). Russia "cuts gas to Europe " Retrieved from http://news.sky.com/skynews/Home/World-News/Russia-Has-Cut-Off-All-Natural-Gas-Supplies-Through-Ukraine-And-Czech-Republic/Article/200901115198630 ?lpos=World_News_Article_Related_Content_Region_3U.S. Department of Energy (2011. World Energy Demand and Economic Outlook. Retrieved from http://www.eia.gov/ieo/world.htmlWolak, F. (January 19, 2011: Can the United States Compete with China on Green Technology?). -on-green-tech/our-comparative-advantage