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Chapter 7 - Benefits and Costs of the Energy Targets for the Post-2015 Development Agenda

Published online by Cambridge University Press:  30 May 2018

By
Isabel Galiana
Edited by
Bjorn Lomborg
Bjorn Lomborg
Affiliation:
Copenhagen Business School
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Summary

The global energy system is undergoing a rapid and significant transformation both from a demand and supply perspective. The former is due in large part to the growth and rapid urbanization of emerging economies, both of which are extremely energy intensive. The latter is due primarily to the ‘shale gas revolution’, the disaster at Fukushima and the push for renewables. The World Energy Council’s definition of energy sustainability is based on three core dimensions - energy security , social/economic equity, and environmental sustainability. Policy objectives should strive to address these three partially conflicting dimensions. Energy is essential to development and as such any target that stimulates greater energy access will yield positive benefit cost ratios. Moreover, if inequality is considered, energy access becomes the most important target. It is unfortunate that current technologies require a trade-off between sustainability and full energy access. Until low-carbon energy sources solve the issues of intermittency and storage, energy access will be shaped primarily by fossil fuels. The benefits of appropriately pricing energy, in particular fossil energy, through subsidy and taxation reform will be all the more important until alternative low-carbon energies can be reliably delivered.
Type
Chapter
Information
Prioritizing Development
A Cost Benefit Analysis of the United Nations' Sustainable Development Goals
 , pp. 143 - 170
Publisher: Cambridge University Press
Print publication year: 2018

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