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Energy and Economic Development: An Assessment of the State of Knowledge

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Author Info
Michael T. Toman
Barbora Jemelkova
Abstract

In large part, the literature on energy and development focuses on how energy demand is driven by economic development and on how energy services can be improved for developing countries. In this paper we begin with a conceptual discussion to identify the channels through which increased availability of energy services might act as a "key" stimulus of economic development along different stages of the development process. We then examine some empirical work to see what evidence it might provide regarding the importance of the possible channels of influence. We do find some important illustrations of a disproportionate role for energy. However, that evidence also underscores the importance of energy development in concert with other forms of development. Moreover, the amount of relevant literature we found was fairly limited, and in many cases it was difficult to separate out various influences in the study to see how energy might be exerting a disproportionate role relative to other influences. This underscores our conclusion that more work is needed to understand the magnitude of its importance for economic development at an economy-wide level.

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Publisher Info
Article provided by International Association for Energy Economics in its journal The Energy Journal.

Volume (Year): 24 (2003)
Issue (Month): 4 ()
Pages: 93-112
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Handle: RePEc:aen:journl:2003v24-04-a05

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F0 - International Economics - - General

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  1. Jaruwan Chontanawat & Lester C. Hunt & Richard Pierse, 2006. "Causality between Energy Consumption and GDP: Evidence from 30 OECD and 78 Non-OECD Countries," Surrey Energy Economics Centre (SEEC), Department of Economics Discussion Papers (SEEDS) 113, Surrey Energy Economics Centre (SEEC), Department of Economics, University of Surrey. [Downloadable!]
  2. Roselyne Joyeux & Ronald D. Ripple, 2004. "The Evaluation of Standard of Living and the Role of Household Electricity Consumption - A Panel Cointegration Analysis," Research Papers 0410, Macquarie University, Department of Economics. [Downloadable!]
  3. David I. Stern & Cutler J. Cleveland, 2004. "Energy and Economic Growth," Rensselaer Working Papers in Economics 0410, Rensselaer Polytechnic Institute, Department of Economics. [Downloadable!]
  4. Theodoros Zachariadis, 2006. "On the exploration of casual relationship between energy and economy," University of Cyprus Working Papers in Economics 5-2006, University of Cyprus Department of Economics. [Downloadable!]
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