sharonjones2005
sharonjones2005 Jan 12, 2026 β€’ 0 views

Cost-Benefit Analysis of Renewable Energy: AP Environmental Science Exam Prep

Hey everyone! πŸ‘‹ Let's ace that AP Environmental Science exam together! 🌎 I've put together a quick study guide and a practice quiz to help you understand the cost-benefit analysis of renewable energy. Good luck!
🌱 Environmental Science

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andrew.solomon Jan 2, 2026

πŸ“š Quick Study Guide

  • 🌍 Renewable Energy Sources: Solar, wind, hydro, geothermal, and biomass. These sources replenish naturally and have lower carbon emissions compared to fossil fuels.
  • πŸ’° Cost-Benefit Analysis (CBA): A systematic approach to estimating the strengths and weaknesses of alternatives used to determine options which provide the best approach to achieving benefits while preserving savings. It involves comparing the total expected cost of each option against the total expected benefits.
  • πŸ“ˆ Economic Costs: Initial investment, maintenance, land use, and grid integration.
  • 🌱 Environmental Costs: Habitat disruption, visual pollution, and potential impacts on wildlife.
  • ⚑ Economic Benefits: Reduced fuel costs, job creation in the renewable energy sector, and energy independence.
  • 🌳 Environmental Benefits: Lower greenhouse gas emissions, reduced air and water pollution, and conservation of natural resources.
  • πŸ“Š Formulas & Metrics:
    • Net Present Value (NPV): $NPV = \sum_{t=0}^{n} \frac{CF_t}{(1+r)^t}$ where $CF_t$ is the cash flow at time t, r is the discount rate, and n is the number of periods.
    • Levelized Cost of Energy (LCOE): $LCOE = \frac{\text{Total Lifecycle Cost}}{\text{Total Energy Produced}}$

πŸ§ͺ Practice Quiz

  1. Which of the following is NOT typically considered an economic cost in the cost-benefit analysis of renewable energy?
    1. A. Initial investment
    2. B. Maintenance costs
    3. C. Reduced fuel costs
    4. D. Grid integration
  2. What is the primary environmental benefit of using renewable energy sources?
    1. A. Increased water pollution
    2. B. Higher greenhouse gas emissions
    3. C. Reduced air pollution
    4. D. Habitat disruption
  3. Which formula is used to calculate the present value of future cash flows?
    1. A. Levelized Cost of Energy (LCOE)
    2. B. Net Present Value (NPV)
    3. C. Return on Investment (ROI)
    4. D. Internal Rate of Return (IRR)
  4. What does LCOE stand for in the context of renewable energy analysis?
    1. A. Levelized Cost of Environment
    2. B. Limited Carbon Output Efficiency
    3. C. Levelized Cost of Energy
    4. D. Low Carbon Operational Expense
  5. Which renewable energy source is most likely to cause habitat disruption due to large land use?
    1. A. Solar Farms
    2. B. Wind Turbines
    3. C. Geothermal Plants
    4. D. Hydroelectric Dams
  6. What is a key economic benefit of transitioning to renewable energy sources for a country?
    1. A. Increased reliance on foreign energy imports
    2. B. Decreased job opportunities
    3. C. Increased fuel costs
    4. D. Enhanced energy independence
  7. Which of the following is a potential environmental cost associated with hydroelectric power?
    1. A. Reduced water availability downstream
    2. B. Increased air pollution
    3. C. Decreased greenhouse gas emissions
    4. D. Reduced noise pollution
Click to see Answers
  1. C
  2. C
  3. B
  4. C
  5. A
  6. D
  7. A

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