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

  • Michael T. Toman
  • Barbora Jemelkova

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

Volume (Year): Volume24 (2003)
Issue (Month): Number 4 ()
Pages: 93-112

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Handle: RePEc:aen:journl:2003v24-04-a05
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  1. Paul L. Joskow & Richard Schmalensee, 1988. "Markets for Power: An Analysis of Electrical Utility Deregulation," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262600188, June.
  2. Lopez Ramon, 1994. "The Environment as a Factor of Production: The Effects of Economic Growth and Trade Liberalization," Journal of Environmental Economics and Management, Elsevier, vol. 27(2), pages 163-184, September.
  3. Antonio Estache, 1994. "World Development Report: Infrastructure for Development," ULB Institutional Repository 2013/44144, ULB -- Universite Libre de Bruxelles.
  4. Sam H. Schurr, 1982. "Energy Efficiency and Productive Efficiency: Some Thoughts Based on American Experience," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 3-14.
  5. Jorgenson, Dale W, 1981. " Energy Prices and Productivity Growth," Scandinavian Journal of Economics, Wiley Blackwell, vol. 83(2), pages 165-79.
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