Center for Effective Global Action

Modern forms of energy are an important driver of economic growth, and providing access to cheap, reliable energy is an essential development objective. However, in future that energy will have to be low- and ultimately zero-carbon. The transition to zero-carbon energy systems is unavoidable if global climate change objectives are to be met, and although the speed of decarbonisation may differ it has to happen to varying degrees in all countries. This paper reviews the economics of greenhouse gas mitigation in developing countries. It reviews the literature on how climate change mitigation in the energy sector may affect economic growth and development; sets out empirical findings about trajectories for energy intensity and emissions intensity (which together with GDP determine emission levels) and analyses options for and barriers to effective decarbonisation policies. We conclude by identifying research gaps.