Question
Use the net energy concept to explain why some
energy resources are subsidized, and give an
example of such a resource.
Answer
Net energy is the amount of energy that is available for use after accounting for the energy required to produce, process, and deliver it. Some energy resources, such as solar and wind, require more energy to produce than they generate, so they are subsidized to make them more economically viable. An example of a subsidized energy resource is solar energy.