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A brisk building boom of hydropower mega-dams is underway from China to Brazil. Whether benefits of new dams will outweigh costs remains unresolved despite contentious debates. We investigate this question with the "outside view" or "reference class forecasting" based on literature on decision-making under uncertainty in psychology. We find overwhelming evidence that budgets are systematically biased below actual costs of large hydropower dams - excluding inflation, substantial debt servicing, environmental, and social costs. Using the largest and most reliable reference data of its kind and multilevel statistical techniques applied to large dams for the first time, we were successful in fitting parsimonious models to predict cost and schedule overruns. The outside view suggests that in most countries large hydropower dams will be too costly in absolute terms and take too long to build to deliver a positive risk-adjusted return unless suitable risk management measures outlined in this paper can be affordably provided. Policymakers, particularly in developing countries, are advised to prefer agile energy alternatives that can be built over shorter time horizons to energy megaprojects.

This paper examines the interrelationships between energy consumption, foreign direct investment and economic growth using dynamic panel data models in simultaneous-equations for a global panel consisting of 65 countries. The time component of our dataset is 1990-2011 inclusive. To make the panel data analysis more homogenous, we also investigate this interrelationship for a number of sub-panels which are constructed based on the income level of countries. In this way, we end up with three income panels; namely, high income, middle income, and low income panels. In the empirical part, we draw on growth theory and augment the classical growth model, which consists of capital stock, labor force and inflation, with foreign direct investment and energy. Generally, we shows mixed results about the interrelationship between energy consumption, FDI and economic growth.

This paper investigates energy transition, energy poverty and energy inequality in Vietnam employing a longitudinal dataset of a nationally representative household survey. We use the data on residential energy expenditure of more than 9,000 households over the period 2004–2016. We find a transition from traditional energy to modern energy but this transition varies across regions, between ethnic and welfare groups and between rural and urban population. The poor and ethnic minority households still rely heavily on traditional energy sources such as coal and biomass to meet their energy demands. Electricity poverty has decreased but energy-cost poverty has increased. In addition, energy inequality tends to decrease at a more significant rate than income and consumption inequalities. We propose a national program for energy poverty alleviation be established to devise policies to lower households’ energy costs. Further assistance to the poor and ethnic minority households is also recommended so that they can afford a higher level of electricity consumption.

Following the debate on the implications of international trade for global climate policy, this paper introduces the topic of the economic benefits from trade obtained by exporting countries in relation to the emissions generated in the production of exports. In 2008, 24% of global greenhouse gas (GHG) emissions and 20% of the employment around the world were linked to international trade. China “exported” 30% of emissions and hosted 37.5% of the jobs generated by trade worldwide. The European Union and the United States of America were the destination of 25% and 18.4% of the GHG emissions embodied in trade. The imports of these two regions contributed to the creation of 45% of the employment generated by international trade. This paper proposes the idea of including trade issues in international climate negotiations, taking into account not only the environmental burden generated by developed countries when displacing emissions to developing countries through their imports, but also the economic benefits of developing countries producing the goods exported to developed countries.

Abstract This paper explores the use of fuelwood in Third World cities. The importance of fuelwood and the factors which condition its use in cities are set out and three fuelwood problems are identified: the cost to urban consumers, fuel supply security and the impact of urban fuelwood markets on rural areas. Urban fuelwood interventions are evaluated, with four categories identified: interventions in marketing, conservation, increased, wood production and fuel-switching. Of these, fuel-switching by improved supply systems and increased production from smallholders and better management of natural woodlands appear to have the greatest potential. The need for flexibility/community participation in planning is stressed.

The dramatically increasing population of Asia necessitates equally as dramatic increase in energy supply to meet demand. Rapidly increasing energy demand is a major concern for Asian countries because the increase in demand is being met through the increased use of fossil fuel supply, largely domestic coal and imported fuel. Renewable energy supply presents a lower emission pathway that could be a viable option for steering off the higher emissions path. However, several market, economic, institutional, technical, and socio-cultural barriers hinder countries in moving from high to low emission pathway. Following a discussion on the rising demand for energy in Asia and the prospects of partly satisfying it with renewable energy, we outline the reasons for government support to tackle the barriers for widespread diffusion of grid-based renewable energy. Additionally, we also discuss workable models for strategic government intervention to support diffusion of grid-based renewable energy in Asia.

In a world that increasingly invites private actors to address social needs, there has been a rise of social enterprises in a variety of sectors, including new and renewable energy. As of yet, little research has focused on how these enterprises interact with government policy in low- and middle-income countries. This research specifically explores how social enterprises operating in rural India with decentralized renewable energy solutions seek to access government support, and what strategies they adopt to engage with the government. An inductive theory-building approach was adopted to explore this and advance current knowledge in the boundaries of social entrepreneurship and policy. We propose ‘Engagement’ and ‘Disengagement’ as the two strategies used by social enterprises in this context in accessing government support and policy. ‘Engagement’ is a strategy comprising of the tactics: (a) Leveraging Policy, (b) Building and Leveraging Relationships, (c) Lobbying, and (d) Monitoring. ‘Disengagement’ is a strategy comprising of the tactics: (a) Avoiding Government Presence, and (b) Disengagement from Policy.

Abstract As analysis of the energy situation in rural areas in developing countries has shown that the major cause of the prevailing energy crisis is the shortage of organic fuel (biomass). To cope with this crisis, therefore, technologies must be sought either to enhance biomass resources or to substitute for them. As the majority of the population in rural areas are poor, the technologies applied should not only meet energy needs; they must also be geared to particular economic and sociocultural conditions. Technically efficient, decentralized systems for the utilization of renewable energy can help in this by raising the availability of organic fuel resources (biomass) and meeting the demand for higher quality energy. Despite their advantages, however, there has as yet been no widespread dissemination of these technologies. The main reasons for this are discussed, and some precepts are presented upon which, it is argued, a strategy for overcoming these obstacles should be based.