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What is the Significance of Energy? Differentiate Between Commercial and Non-commercial Sources of Energy. - Economics

Answer in Brief
Distinguish Between

What is the significance of energy? Differentiate between commercial and non-commercial sources of energy.

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Solution

Energy is the most important component of economic infrastructure. It is a critical aspect of the development process of a nation. It is essential for industries as no commodity is produced without using energy. Now a days, energy is used even in the agricultural sector. It is needed to operate tube-wells, tractors and thrashers. It is also required in houses for cooking. One cannot even think of a day without electricity and other sources of energy like petrol, LPG, etc. So, we can say that energy is lifeline of the entire production activity. 

Commercial energy

Non Commercial energy

i. The sources of energy that are available to the users at some price are referred to as commercial energy.

ii. This form of energy is used for commercial purposes.

iii. For example, coal, petroleum, natural gas and electricity.

i. The sources of energy that are usually available freely to the users are referred to as non-commercial energy.

ii. This form of energy is used for domestic consumption.

iii. For example, Firewood, agricultural waste, animal waste (cow dung)

Concept: Energy
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APPEARS IN

NCERT Class 12 Economics - Indian Economic Development
Chapter 8 Infrastructure
Exercise | Q 6 | Page 159
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