ECONOMICS MANAGEMENT INFORMATION TECHNOLOGY 86 Vol.2/No.2/2013 UDK: 330.15(497.11) ; 553.78 ID: 200893964 Review Article GEOTHERMAL RESOURCES OF SERBIA AS A COMPARATIVE ADVANTAGE Dejan T. Riznić, Radmilo Nikolić, Aleksandra Fedajev University of Belgrade, Technical faculty in Bor Abstract: The economic attractiveness of the geothermal energy as a major geothermal resource can be an important factor of economic growth, not only in tourism and balneology, but also in the agriculture, aquaculture, and industry. Besides in balneology and partly in tourism, expected results have not been achieved. What could have been done differently and what can be done for future prospects to be improved? Despite significant potentials, intensive development and positive results of using geothermal resources worldwide, and the present economic recession, only a small part of such natural treasure has been affected, with no attention paid to direct applications of geothermal energy that could directly contribute to the economic growth and recovery of our economy. Keywords: geothermal resources, comparative advantage, economic growth. ARTICLE INFO Article history: Recived 15 June 2013 Recived in revised form 22 June 2013 Accepted 22 June 2013 Available online 09 Sept. 2013 1. INTRODUCTION The economic attractiveness of geothermal energy as a major geothermal resource may represent a significant basis for economic growth, not only in tourism and balneology, but also in agro and aquaculture, as well as in industry. Besides balneology and a part of tourism, it has not achieved the expected extent. What might otherwise be done and what can be done to improve prospects for the future? China is now investing huge money in green technology and is slowly becoming a leader when it comes to the use of solar energy and wind. In Germany, which is also a leader when it comes to clean energy, have been opened over three hundred thousand jobs due to the trend of green economy and the use of sustainable energy sources, and our country, although rich in thermal mineral springs, is not using sufficiently this comparative advantage. Thermal mineral springs of Serbia provide economic benefits through comparative advantages of renewable energy sources and environmental benefits due to the reduction of global warming, since the Earth's climate is changing, and global warming is not happening by itself, but is a result of anthropogenic influences. Thermal mineral spas have evolved around natural thermal mineral water sources. This and other forms of geothermal energy are an important national wealth, especially for replacing a part and even the whole of conventional energy (coal, oil, gas). Projects with direct use of these energy require higher initial investment, with lower operating costs later, however, the economic benefits depend of the location of the users and the resources, the efficiency of utilization of heat, the annual burden of exploitation of these resources, as well as financing costs, amortization period and inflation rate. This system has a long durability, which is beneficial to their economic viability and economics of geothermal mineral water utilization depends on timely application, the beginning of the exploitation of resources, so the total exploitation losses are minimized. Despite the significant potential, intensive development and the positive results of using geothermal resources in the world and the economic recession, it is used only a small part of this natural wealth,