4 - Economic activity and energy

Primary sector

Primary sector

Growth/extraction of raw materials

e.g. farming, fishing, mining

Secondary sector

Where materials are processed to produce finished product

e.g. car manufacture, food processing

Tertiary sector

Provision of a service

e.g. retail, schools, healthcare

Quaternary sector

Provision of specialist info/knowledge

e.g. research + development, IT

Clark Fisher Model

Pre-industrial period

• Primary sector dominates

• Steady increases in secondary + tertiary sectors

Industrial period

• Amount of GDP + employment in secondary sector increases to become dominant, then decreases

• Primary sector continues to decrease

• Tertiary sector increases

Post-industrial period

• Tertiary + quaternary sectors increase

• Secondary + primary decrease

• Tertiary sector dominates employment + GDP

Employment structure in developed countries

Usually more people working in tertiary/quaternary sectors than primary and secondary

Employment structure in developing countries

Usually more people working in primary sector than secondary/tertiary sectors

Causes of changes in employment structure

• Increasing mechanisation in agriculture → decrease in jobs available in primary

• People move to urban areas to find jobs in secondary + tertiary sectors

• Increasing mechanisation + global changes lead to decrease in secondary employment in some countries

• Tech improvements lead to increase in tertiary + quaternary employment

Physical factors influencing location of economic sectors

• Raw materials - industries require raw materials to produce goods

• Land - cost of land + how much is available

• Energy - where industries get power supply from

• Climate - some industries benefit from particular climates

Human factors influencing location of economic sectors

• Capital - money available to set up + run economic activity

• Transport + communications - accessibility by road, air and rail is important to many industries

• Market - how close industries are to the market

• Labour - all industries need workers

• Govt. policy - tax incentives, cheaper rent

Factors affecting location of primary activities

• Climate (mainly agriculture) - precipitation, sunshine hours and temp affect type of crops grown or livestock

• Land - amount of land available, cost, soil type, resources (coal, gold)

• Market (mainly mining) - distance from market + transport cost particularly important for mining due to bulky products

• Govt. policies - whether subsidies are available

• Labour - in developed countries, few workers needed due to mechanisation

• Transport - access to roads to transport crops, animals, quarried/mined materials, timber

Factors affecting location of secondary activities

• Raw materials - how close the activity needs to be to raw materials + types of raw materials depends on the industry

• Land - large areas of land often required, so cost + amount of land important - car manufacture needs more space than food processing/clothing production

• Market - access to market is important to be able to sell goods

• Govt. policies - tax incentives, grants, loans may be available if economic activity is located in particular area

• Energy - power source needed, used to be coal/water but is now electricity, which can be accessed in many areas

• Labour - mechanisation means not as many workers required

• Transport - access to roads essential to bring in raw materials + send out product - heavier, bulkier products have higher transport cost

Factors affecting location of tertiary activities

• Land - amount of land depends on type of economic activity, large retail parks need lots of land

• Market - needs to be close to customers

• Energy - power source is needed, electricity can be accessed in many areas

• Labour - workers needed, both skilled + unskilled

• Transport - needs to be accessible for customers, workers and in case of retail, to bring in products

Factors affecting location of quaternary activities

• Land - science parks need large areas usually near a university on rural-urban fringe; needs to be near skilled workers + universities; pleasant working environment

• Energy - power source needed, electricity can be accessed in many areas

• Labour - skilled labour needed, often uni graduates

• Transport - needs to be accessible to workers

How location of secondary activities has changed

• Transport is faster + cheaper so products can be moved around the world

• Increase in transnational corporations (TNCs) with factories + offices in many countries

• Factories were once tied to power source of coal/water - electricity now available almost anywhere

• Internet means instant communication with factories/offices around the world is possible

• Govt. policies in developing countries are aimed at attracting manufacturing often using tax incentives

• Cheaper labour, less strict health and safety, cheaper land and more workers are available in developing countries - reduces costs + increases profits

• Raw materials may no longer be available in the area

Deindustrialisation

Reduction of secondary economic activities (manufacturing)

How location of tertiary/quaternary activities has changed

Increasingly located in rural (greenfield) areas on rural-urban fringe due to number of factors:

• More open space for expansion + car parking

• Cheaper land

• More accessible

• Located near suburbs + commuter village - good access for workers + custoemrs

• Increase in science, business and retail parks where similar businesses are located together

Decentralisation

The relocation of tertiary/quaternary economic activities to rural areas on rural-urban fringe

In developing countries, more people are employed in ____ sector because…

Primary

• Often a significant % of rural population are subsistence farmers

• Countries depend on raw material exports to developed countries

e.g. Kenya

In emerging countries, dependence on ____ economic activity increases because…

Secondary

• Factories are located in emerging countries due to lower costs

• More raw materials may be available

• Govt. policies aim to attract companies to locate there

e.g. China

In developed countries, there is dependence on ____ economic activities because…

Tertiary

• Education levels are higher so people want tertiary sector jobs - higher paid (on avg.) than secondary + primary jobs

• Deindustrialisation means fewer jobs in secondary economic activities

• Mechanisation means fewer jobs in primary + secondary economic activities

e.g. Germany

Factors affecting no. of people employed in each sector

• Availability of raw materials

• Globalisation

• Technology

• Demographic changes

• Govt. policies

How availability of raw materials affects no. of people employed in each sector

• Raw materials may have run out or be economically unviable to obtain

• Crop production + livestock may be reduced due to drought, flood, pest/disease, soil erosion

• Improvements in tech may reduce amounts of raw materials needed

How globalisation affects no. of people employed in each sector

• Transnational corporations (TNCs) have factories + offices in many countries

• Lower costs tend to be in developing + emerging countries

• Internet + improved communication mean that service activities such as call centres can be located anywhere in the world

• Industries such as textiles and steel manufacturing are increasingly located in emerging countries

How technology affects no. of people employed in each sector

• Fewer jobs in farming, mining and many factories due to mechanisation

• Internet means companies can manage factories + offices located in different countries

• Improvements in transport have reduced friction of distance

How demographic changes affect no. of people employed in each sector

• Increasing population means greater demand for products + services

• People have more disposable income to spend on leisure and other services

• Demand for goods + services is affected by age structure of population

• Increasing population means more workers available

How govt. policies affect no. of people employed in each sector

• Govt. policies target particular economic activities to locate in their country using tax incentives, infrastructure improvements (new railways, airports) and grants/cheap rent

Sector shift in developed country (UK)

• UK in post-industrial stage of Clark-Fisher model

• First country to experience Industrial Revolution

• In 1800s, most jobs in primary economic activities were rapidly declining, reaching 15% in 1900

• In 1900, most people (over 60%) worked in secondary economic activities + tertiary activities were steadily increasing

• In 1950s, tertiary economic activities overtook secondary activities as main employment sector

• In 2021, over 70% of people in UK are employed in tertiary activities

Positive impacts of sector shift in developed country (UK)

• Deindustrialisation has led to improvements in environment + decreased pollution levels

• UK has developed expertise in secondary + tertiary activities which are in demand around the world

• London is 2nd most important financial centre in the world after NYC

Negative impacts of sector shift in developed country (UK)

• Deindustrialisation led to high number of job losses, particularly in north of UK

• Job losses in secondary industries led to large areas of deprivation, especially in inner cities, such as Liverpool and Leeds

• Increasing numbers of transnational corporations (TNCs) have moved factories + offices to emerging + developing countries

Sector shift in developing country (Kenya)

• Kenya is in pre-industrial stage of Clark-Fisher model

• Over 50% of population are currently employed in agriculture - decreased from over 60% in 2010

• Very little secondary activity due to lack of resources + infrastructure

• Tertiary activities have rapidly increased - mostly related to tourism

Positive impacts of sector shift in developing country (Kenya)

• Improved incomes + higher standard of living

• More investment in education + health

• Increased investment by transnational corporations (TNCs)

• Investment in roads, airports, ports and other infrastructure

Negative impacts of sector shift in developing country (Kenya)

• Increased rural-urban migration, leading to development of informal settlements

• Increased gap between rich and poor, particularly gap between wealthier urban residents + poorer urban residents

• Most of profits from commercial farming + tourism go to TNCs rather than local people

• Jobs in tertiary sector are often low-paid jobs in tourism

• Increased tourism can have negative impacts on environment + animal habitats

Informal employment

Any employment which is unregulated + unofficial

• Estimated that over 60% of world’s employed population work in informal employment

• Estimated 93% of informal employment is in developing + emerging countries

• Most informal employment is work in tertiary sector

Examples of jobs in informal economy

• Shoe shining

• Rubbish collecting

• Selling fruit or other products on the street

• Para-transit - inc. rickshaws, tuk tuks

Causes of informal employment

• People want to avoid paying taxes

• High levels of rural-urban migration - more people than jobs available

• Employers want to avoid paying holiday and sick pay

• Low wages mean people need additional jobs to make enough money

• People need flexible hours to fit around their family

• Lack of qualifications/education means people can’t get work in formal sector

Impacts of informal employment

• People working in informal economy:

  • Have no healthcare benefits

  • Are often exposed to health/safety risks

  • Have no contracts or guaranteed pay

  • Have no holiday/sick pay

• Para transit often causes congestion and if motorised, they cause additional pollution

• Lack of regulations means workers are often exploited by employers

• Many children working in informal employment can’t go to school

• Children may be exposed to health risks, drugs, violence, crime

• Govts. collect less tax because jobs are unofficial

Informal employment in Dhaka

• Capital of Bangladesh

• Megacity - 22.5m population

• Approx. 400,000 people migrate to Dhaka each year

• Estimates suggest thar over 75% of population are engaged in informal employment:

  • 500,000 rickshaw drivers

  • 80,000 waste-related workers

  • Workers in small workshops

  • Casual workers in restaurants + hotels

  • Day labourers in construction

• Informal employments also include children, with over 690,000 children in Dhaka involved in informal employment

• Many of Dhaka’s informal workers live in informal settlements

Characteristics of Dhaka’s informal sector

• Low pay

• Long working hours

• Temporary/part-time work

• Underemployment

• No benefits such as holiday/sick pay

• Poor + unhealthy working conditions

• Health + safety risks

• No training

• Exploitation by employers

• No legal protection

Relationship between population & resources

• Economic activities involve use of resources + energy

• Rate at which resources + energy are used depends on:

  • Pop. size

  • Rate of development

• Many resources inc. energy sources are finite and non-renewable

• Each country/area has carrying capacity

Carrying capacity

The population an area’s resources can sustain

Optimum population

Results in highest standard of living

• Not so many people or so few resources that standard of living falls

• Enough people to develop resources of country

Underpopulation

Population too small to develop resources effectively

Overpopulation

Too many people / too few resources to ensure high standard of living

Population pressure

Occurs when population > carrying capacity

Malthus theory

Pessimistic view on relationship between pop. & resources, stating:

• Pop. growth increasing at faster rate than food supply

• There will be time when there’s insufficient food to sustain population

• As a result, pop. growth will stop as result of Malthusian catastrophe - famine, disease, war

• Known as positive checks as they increase death rate

• Preventative checks are factors decreasing birth rate

• Limiting factors maintain balance between pop. & resources

Were Malthus’s predictions correct?

Incorrect as they came before tech developments that enable increased food supply

Neo-Malthusians

• Argue that:

  • We have now used most of available agricultural land

  • Amount of fertile land declining

  • Food prices increasing

  • Pop. continues increasing

• They suggest that famines are one example of how Malthusian theory was correct

• Argue that pop. control is essential to avoid Malthusian catastrophe

Boserup theory

Optimistic view of relationship between pop. & resources, stating:

• Pop. growth will stimulate tech developments to increase food production

• More efficient resources will be discovered/used

• Renewable resources will replace non-renewable

How pop. growth + development cause increased energy demand

• Higher demand for food → more intensive farming which requires more energy for machines, light, heat

• Increasing industry → requires energy for heating, lighting, machinery

• More transport → requires energy in form of petrol, diesel, electricity

• Urbanisation increases with development → increases domestic appliances, heating, lighting

• Increased wealth → people buy more appliances and tech which require energy

Countries with highest energy consumption (per person)

Usually developed countries

• Canada

• Norway

• Saudi Arabia

Countries with lowest energy consumption (per person)

Developing countries, all in Africa

• Niger

• Chad

• Tanzania

Energy mix

Percentage contribution of each energy source to total energy consumption

Global energy mix

• Main energy sources are fossil fuels - supply 84% of world’s primary energy

• Renewables increasing - only 11% of energy mix

• Nuclear - 4% of primary energy

Energy production

• Energy sources not evenly distributed across world

• Some areas produce very little energy due to lack of natural resources / don’t have money to exploit resources

• Fossil fuels are main energy sources

• World’s largest producers are often largest consumers

Countries producing most fossil fuels

• USA

• Canada

• Norway

• Russia

• Australia

• Middle East

Energy gap

When country can’t meet demand for energy using its own resources

When countries have energy gap, have to import energy to meet demand

Energy security

• Having energy gap means country isn’t energy secure

• To be eneergy secure, country must have:

  • Uninterrupted energy supply

  • Affordable supply

  • Accessible supply

UK energy security

Has widening energy gap, not energy secure because:

• Renewable energy not as efficient and so can’t fully replace energy from fossil fuels

• Cheaper to import fossil fuels than exploiting UK resources

Factors affecting energy security

• Commitment to tackling climate change and reducing fossil fuel use

• Energy sources running out

• War/conflict

• Natural hazards

• Political disputes

Advantages of gas

• Efficient

• Least polluting of fossil fuels

• Easy transport - pipes

• Easy to produce energy

• Reliable

Disadvantages of gas

• Risk of explosions

• Releases CO₂ (GHG)

• Air pollution

• Price fluctuates

Advantages of oil

• Efficient

• Less polluting than coal

• Quite easy transport - pipes/barrels

• Easy to produce energy

• Reliable

Disadvantages of oil

• Risk of oil spills

• Risk of fire/explosions

• Low world reserves

• Releases CO₂ (GHG)

• Air pollution

• Price fluctuates

Advantages of coal

• Large world reserves

• Mechanisation + tech made coal more accessible

• Cheap

• Efficient

• Easy to produce energy

• Reliable

Disadvantages of coal

• Releases CO₂ (GHG)

• Releases SO₂ (causes acid rain)

• Opencast mines destroy habitats

• Heavy + bulky to transport

• Mining accidents

• Air pollution

Advantages of nuclear

• No GHG emissions

• Efficient

• Small amount of uranium needed

Disadvantages of nuclear

• Radioactive + expensive to dispose of

• Power stations expensive

• Risk of nuclear accidents

• Possible health impacts near power stations

Advantages of hydroelectric

• No GHG emissions

• Controls flooding downstream

• Often in sparsely populated areas

• May provide water storage for irrigation + domestic use

Disadvantages of hydroelectric

• Large areas of land flooded behind dam

• Dam traps sediment - can affect ecosystems downstream

• Visual pollution

• Can prevent fish movement upstream

• People + settlements may have to relocate

• Expensive to build + maintain

Advantages of wave/tidal

• No GHG emissions

• No air pollution

• Potentially produce large amounts of energy

• Reliable

Disadvantages of wave/tidal

• Expensive to build + maintain

• Can affect marine ecosystems

• Few suitable sites

Advantages of wind

• No GHG emissions

• No air pollution

• Can be large / small scale

• Cheap to run

• Can be on land / offshore

Disadvantages of gas

• Unreliable - only works when wind is strong enough but not too strong

• Visual pollution

• Noise pollution

• Many turbines needed to produce same energy as avg. coal power station

• May affect bird migration patterns / kill birds who fly into blades

Advantages of solar

• No GHG emissions

• No air pollution

• Can be large / small scale

• Can be used in most locations

• Can be incorporated into building design

Disadvantages of solar

• Expensive

• Unreliable - only works when sunny

• Large numbers needed to produce energy

• Uses large areas of land

Advantages of geothermal

• No CO₂

• Lots of potential sites

• Reliable

• Can produce large amounts of energy

Disadvantages of geothermal

• Expensive

• Emits sulfuric gases

• High temp causes maintenance issues

Advantages of biomass

• Uses waste/biofuels which regrow

• Available in most locations

Disadvantages of biomass

• Air pollution

• Produces GHGs

• Expensive

Sustainable

Meeting the needs of today’s people while ensuring that future generations are able to meet their needs

Sustainable energy management

• Essential if future generations are to have necessary energy resources

• Non-renewable sources will run out eventually so need to be used carefully

• As supplies run out, prices will increase, meaning:

  • Economic development harder as profits decrease

  • Countries with energy surplus become more powerful

  • Countries with energy gap pay more to import energy

• Fossil fuels create pollution + emit GHGs - need to reduce amount used

Individual actions to improve energy efficiency

• Reduce car use by using public transport, walking, cycling

• Insulating walls + roof spaces

• Buy energy efficient appliances, e.g. washing machines

• Don’t leave electrical items on standby

• Install double/triple glazing

• Install heat exchange

• Turn thermostat down

• Install solar panels

National actions to improve energy efficiency

• Invest in renewable tech, e.g. wind, solar

• Encourage switch to electric cars

• Invest in public transport

• Provide grants + loans for homeowners to install solar panels/insulation

• Building regs to ensure new homes are energy efficient

Energy use in developing country (Nepal)

• Mountainous landscape, includes most of Himalayas

• Rural population - only 16% living in towns/cities

• Low energy demand but growing as country develops

Energy mix in developing country (Nepal)

• Main energy source for 82% of rural population is fuelwood

• In urban areas, use of fuelwood is 36%

• Nepal has no suitable coal, oil, gas reserves so these have to be imported

• 98% of all electricity in Nepal generated through hydropower

Sustainable future in developing country (Nepal)

• Electricity access has increased rapidly over past 15yrs - 88% of population now have electricity access

• Support from World Bank led to more investment in hydropower

• Over 3000 micro-hydro plants in Nepal

Example of HEP plant in Nepal

Ruma Khola Micro-Hydro

• Completed in 2009

• Provides electricity for town of Darbang + 5 neighbouring villages

• Supplies energy for 22 industries, including:

  • Metal workshop

  • Furniture manufacturers

  • Cement block manufacturer

  • Noodle factory

• Funded with govt. grants with support from World Bank

• Built + operated by community

• Loans paid back using money that community pay for electricity supply

• Has improved living standard in communities

• Reduced reliance on kerosene + fuelwood, less emissions

• Decreased deforestation

Energy use in developed country (Norway)

• One of world’s highest energy demand

• Mainly urban population - 83% living in towns/cities

Energy mix in developed country (Norway)

• Has signficant energy resources:

  • 1% of world’s gas reserves (17th in world)

  • 0.3% of world’s oil reserves (22nd in world)

  • Some coal reserves

• One of world’s largest energy exporters

• Hydropower generates 90% of electricity and accounts of 65% of energy use

Sustainable future in developed country (Norway)

• Over 1500 hydropower plants

• Expanding other renewable sources due to issue of reliance on hydropower during dry season + environmental impact of large hydropower plants

• Demand continues increasing

• Expanding number of wind farms:

  • Currently 53 wind farms

  • 36 additional onshore + offshore planned and due to be started/completed by 2030

  • Includes world’s first floating wind farm

• Investing in solar energy:

  • Oslo homeowners get 30% subsidy for installing solar panels

• Encouraging population to move to electric cars to reduce oil consumption:

  • 2021 - 66% of all new car sales were electric