Path dependence in energy systems and economic development

Roger Fouquet

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

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.

Keywords: energy economics; energy policy; political economy of energy (search for similar items in EconPapers)
JEL-codes: N0 (search for similar items in EconPapers)
Date: 2016-07-11
New Economics Papers: this item is included in nep-ene and nep-ppm
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Citations: View citations in EconPapers (51)

Published in Nature Energy, 11, July, 2016, 1, pp. 16098. ISSN: 2058-7546

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Journal Article: Path dependence in energy systems and economic development (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:67119

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