Energy Economics in Developing Countries: Analytical Framework and Problems of Application

The pervasive and vital role of energy in national economies indicates that the identification of energy issues and energy policy analysis and implementation are important areas of study. While the drop in world oil prices which began in 1986 has provided some relief to the economies of oil-importing nations, energy-related problems still preoccupy the minds of decisionmakers in most developing countries. Thus, while most of the key energy issues identified during the past decade persist, the availability of adequate energy resources at reasonable cost remains a vital precondition for continued economic growth. Typically, energy investments still account for about 25 percent of total public capital investments in developing countries.