2013_HCI_H1_Econs_Qn Paper

HWA CHONG INSTITUTION JC2 Preliminary Examinations Higher 1 CANDIDATE NAME CT GROUP 12A/S CENTRE NUMBER INDEX NUMBER ECONOMICS Paper 1 Additional Materials: Answer Paper 8819/01 20 September 2013 3 hours INSTRUCTIONS TO CANDIDATES Write your name and CT class clearly in the spaces at the top of this page and on every page you hand in. Write in dark blue or black pen on both sides of the paper. You may use a soft pencil for any diagrams, graphs or rough working. Do not use staples, paper clips, highlighters, glue or correction fluid and tape. Section A Answer all questions. Section B Answer one out of 2 questions. Begin your answer to each question on a fresh sheet of writing paper. At the end of the examination, fasten the answer scripts to Section A: Questions 1, 2 and Section B separately with the 3 cover pages provided. The number of marks is given in brackets [ ] at the end of each question or part question. You are reminded of the need for good English and clear presentation in your answers. This document consists of 8 printed pages. [Turn over

© Hwa Chong Institution 2013 8819/01/JC2 Prelim 2013 2 Section A Answer all questions. Question 1 Japan and The Future of Energy Extract 1 World energy outlook Without a bold change of policy direction, the world w ill lock itself into an insecure, inefficient and high- carbon energy system. Prosperity and rising populati on will inevitably push up energy needs and energy prices over the coming decades despite much effort to meet the need. Governments urgently need to introduce stronger measures to drive investment in efficient and low-carbon technologies to accelerate the increase in the production of energy. The Fukushima nuclear accident leading to a sharp rebound in the demand of conventional oil-based energy and turmoil in parts of the Middle East and North Africa in 2010 had pushed carbon emissions to a record high. The Fukushima accident has also raised questions about the future role of nuclear power, it seems like oil is the necessary evil. Although the accident provided a boost to other renewables, the heighten energy security concerns is making it harder to combat climate change. Out of the many greener forms of energy sources, the future for natural gas seems to be more certain despite the strong inertia to change. Natural gas is abundant and relatively inexpensive. With technological enhancement, natural gas prices have been presenting itself as a more favorable alternative. Source: International Energy Agency, 2011 Figure 1 Crude Oil prices to Natural Gas Prices (2009-2011) Source: Energy Information Administration, 18 October 2012.

© Hwa Chong Institution 2013 8819/01/JC2 Prelim 2013 3 Extract 2 Golden age of gas Exploiting the worl