Center for Effective Global Action

We find that electricity use and access are strongly correlated with economic development, as theory would suggest. Despite large empirical literatures and suggestive case evidence, there are, however, few methodologically strong studies that establish causal effects on an economy-wide basis. There is some evidence that reliability of electricity supply is important for economic growth. We propose that future research focuses on identifying the causal effects of electricity reliability, infrastructure, and access on economic growth; testing the replicability of the literature; and deepening our theoretical understanding of how lack ofavailability of electricity can be a constraint to growth.

Countries dependent on oil and mineral exports are often advised to diversify their economies, yet surprisingly little is known about how this can be done. This paper reviews the recent literature on diversification in resource-dependent states and suggests it has been constrained by missing and inconsistent data, and a reliance on diversification measures that are relatively uninformative for resource-rich states. It then uses an improved measure of export concentration from Papageorgiou and Spatafora to document three empirical patterns over the last half-century: the divergence between oil-producing states and non-oil states; the reconcentration of exports in most oil and mineral producing states since 1998, caused by the boom in commodity prices; and the heterogeneity of the oil producers, marked by greater diversification in Latin America and Southeast Asia, mixed performances in the Middle East, and greater concentration in Africa and the former Soviet Union. While change in the former Soviet Union was spurred by large new discoveries, the diversification failure of all oil- producing states in both North and sub-Saharan Africa is striking, and stands in contrast to the region’s non-oil producers. The paper concludes with a research agenda for deepening our understanding of this issue.

Large scale renewables raise new challenges and provide new opportunities across electricity systems. This paper considers the barriers faced by large scale renewables in electricity systems in Sub-Saharan Africa and South Asia. We review the current state of knowledge in relation to grid-connected renewables. This paper then explores key issues in electricity systemstructure, the main challenges to the uptake of renewables, and the various existing fiscal and policy approaches to encouraging renewables. We also highlight possible ways moving forward to ensure more widespread renewables deployment.

When developing electricity systems, generation and grid have been separately planned and demand has generally been assumed passive, estimated using aggregated approaches. However a variety of design, technology and regulatory solutions are available in modern power systems for a more tailored approach to power system development, which may hold great promise for low income countries to leapfrog towards sustainable and decentralised energy delivery. Monitoring of power systems from generation to load, PMUs, on-site storage, DLR, OLTC, direct load control or innovative network topologies including micro- and mini-gridscan reduce total costs, increase asset utilisation and modify the optimal phase-in of investments along a planning horizon. These allow for new planning approaches and more holistic phase-in of generation and networks. This paper reviews the scientific literature and best practice databases, providing a state-of-the-art perspective on the technical options,costs, benefits and barriers to deployment of a progressive build-up of power infrastructure.

This paper addresses the role of governance of urban areas in shaping energy use in LICs and MICs, from the perspective of the poorest and disadvantaged. Urban dwellers in LICs and MICs often access electricity  through irregular, patchy and informal connections which are frequently considered illegal. This situation is closely linked to how urban areas develop in LICs and MICs, often with weak urban governance and little control, resulting in what is termed‘informal settlements’ and slums. Studies of urban infrastructure in LICs and MICs have tended to concentrate on water and sanitation networks, with comparatively very limited attention being paid to access to electricity. The paper reviews the literature that exists on access toelectricity in urban areas in the Global South, and draws on experiences in other urban infrastructures that may provide lessons towards improving such access for the poorest and disadvantaged.

This paper provides an overview of market-oriented power sector reforms in Sub-Saharan Africa, South Asia, and Latin America over the past twenty-five years. The role of political economy contextualities in driving, constraining or otherwise influencing power sector reform is explored through a review of the essential literature. Though this literature is considered to have considerably expanded the scope of understanding around power sector reform and development, political economy research in the area is found to be lacking in methodological coherence and theoretical substance. Future efforts are needed to systematically bring together the array of insights, methodological approaches and recommendations in this literature, as well as better bound, differentiate and systemise political economy research in the area going forward. Two initial frameworks are advanced through this paper in relation to this dual research imperative.

The literature assessing demand-side energy efficiency potential, and the policiesthat can be deployed to tap this potential has traditionally focused on developed andemerging economies. We review the state of knowledge on demand-side energy efficiency investments, and reframe the discussion in terms that are better suited to a low income country setting. This reframing opens up new lines of inquiry which have been under-emphasized to date. We provide a conceptual framework for exploring questions concerning the returns on investment in energy efficiency, market failures and barriers that can lead to under-investment, rebound effects, and policies designed to accelerate cost-effective investment. We highlight some institutional considerations that should inform policy prioritization and implementation in LIC settings. A case study of a large scale efficiency program in India underscores both the challenges and the potential forwelfare improving energy efficiency programs in the developing world.

In this Energy for Economic Growth (“EEG”) state-of-knowledge paper, we reviewevidence on the causes and consequences of electricity outages, focusing on cities.Studies on the microeconomics of electrification concentrate mainly on the impacts of expanding access to electricity in rural areas. In many cities, the primary issue is the reliability of the electric grid rather than the lack of access to electricity. We discuss supply side, demand side, and political economy factors causing outages, the economic impacts of outages, and how electricity suppliers respond to the prospect of shortages. Finally, we highlight areas that would benefit from further research.

The article reviews and consolidates both theory and findings on the gender consequences of energy access in the Global South. The literature shows that women across the Global South have far greater responsibility than men for the work involved in producing essential home energy services such as light and heat, cooking, and cleaning. The most significant impact of electrification is that it enables better time management by women and the reduction of physical work (drudgery). There is evidence from a number of settings that the time saved can be used by women to study, take on salaried work and start new small businesses, and that these benefits can be facilitated by including women in energy governance and planning. A point that is often missed, underestimated or misunderstood from a North American/European perspective is that gendered ideologies and practices in the Global South are deeply anchored in family and kin relations. The joint family is an entity and network through which money, assets and commodities move, creating obligations which are important to understanding the interaction of gender relations and energy access.

All governments either tax or subsidize the consumption of fossil fuels. These pricing policies have far-reaching consequences not only for the environment, but also for governance and economic development. In this state-of-knowledge paper, we examine previous research on fossil fuel subsidies, noting areas that are understudied in the context of determinants of price policies and causes for policy reform. We then describe new data on implicit gasoline taxes and subsidies, report global trends, and explore the relationship between oil wealth and government policies. We conclude with actionable ideas for future research projects.