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Path dependence in energy systems and economic development

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  • Roger Fouquet

    (Grantham Research Institute on Climate Change and the Environment, London School of Economics and Political Science (LSE))

Abstract

Energy systems are subject to strong and long-lived path dependence, owing to technological, infrastructural, institutional and behavioural lock-ins. Yet, with the prospect of providing accessible cheap energy to stimulate economic development and reduce poverty, governments often invest in large engineering projects and subsidy policies. Here, I argue that while these may achieve their objectives, they risk locking their economies onto energy-intensive pathways. Thus, particularly when economies are industrializing, and their energy systems are being transformed and are not yet fully locked-in, policymakers should take care before directing their economies onto energy-intensive pathways that are likely to be detrimental to their long-run prosperity.

Suggested Citation

  • Roger Fouquet, 2016. "Path dependence in energy systems and economic development," Nature Energy, Nature, vol. 1(8), pages 1-5, August.
  • Handle: RePEc:nat:natene:v:1:y:2016:i:8:d:10.1038_nenergy.2016.98
    DOI: 10.1038/nenergy.2016.98
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    References listed on IDEAS

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    JEL classification:

    • N0 - Economic History - - General

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