Economics of Access to Energy

Abstract

AbstractEnergy services underpin the socio-economic development of nations and their prosperity. This chapter discusses the key obstacles that have so far prevented 840 million people worldwide from gaining access to electricity and 2.9 billion from accessing clean cooking facilities. The authors argue that the problem of access to modern commercial energy is fundamentally an economic one. They explore the different yet common roots linking energy access to technological, governance, and financing aspects. The electricity and clean cooking challenges are firstly discussed separately to highlight the specific techno-economic issues underlying each service. This is beneficial to a conclusive discussion of the key economic policy instruments and financing approaches necessary to achieve universal access to modern energy.