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Economic growth and development with low-carbon energy

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  • Fankhauser, Samuel
  • Jotzo, Frank

Abstract

Energy is needed for economic growth, and access to cheap, reliable energy is an essential development objective. Historically most incremental energy demand has been met through fossil fuels; however, in future that energy will have to be low carbon and ultimately zero‐carbon. Decarbonization can and needs to happen at varying speeds in all countries, depending on national circumstances. This article reviews the implications of a transition to low‐carbon energy on economic growth and development in current low‐income countries. It sets out empirical findings about trajectories for energy intensity and emissions intensity of economic growth; explores pathways to accelerate decarbonization; reviews the theoretical and empirical literature on economic costs and co‐benefits of energy decarbonization; and assesses analytical approaches. It discusses the opportunities that might arise in terms of a cleaner, more dynamic and more sustainable growth model, and the options for developing countries to implement a less‐carbon intensive model of economic development

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  • Fankhauser, Samuel & Jotzo, Frank, 2017. "Economic growth and development with low-carbon energy," LSE Research Online Documents on Economics 86850, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:86850
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    2. Halkos, George & Moll de Alba, Jaime & Todorov, Valentin, 2021. "Analyzing manufacturing sector and selected development challenges: A panel data analysis," Energy, Elsevier, vol. 235(C).
    3. Xuan Yang & Rongrong Li, 2018. "Investigating Low-Carbon City: Empirical Study of Shanghai," Sustainability, MDPI, vol. 10(4), pages 1-14, April.
    4. Lu, Jin & Wang, Tianhui & Liu, Xihua, 2023. "Can environmental governance policy synergy reduce carbon emissions?," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 570-585.
    5. Nigel R Curry, 2021. "The rural social economy, community food hubs and the market," Local Economy, London South Bank University, vol. 36(7-8), pages 569-588, November.
    6. John Paul Apire & Dickson Turyareeba & Moni Anthony Olyanga & Vincent Patsy Katutsi & Benjamin Musiita & Anthony Wamala, 2023. "Female Labor Force Participation and Uganda’s Economic Growth," Journal of Economics and Behavioral Studies, AMH International, vol. 15(4), pages 55-68.
    7. Guangyao Deng & Jiao Qian, 2025. "How Does the Pilot Information Consumption Policy Affect Urban Carbon Productivity? Quasi-Experimental Evidence from 275 Chinese Cities," Sustainability, MDPI, vol. 17(10), pages 1-24, May.

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    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

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