By Xiaolan Fu, University of Oxford, Rasmus Lema, University of Aalborg and Roberta Rabellotti, University of Pavia
There is increasing recognition that policies aimed at meeting environmental targets may open new economic development paths, especially for emerging economies, given the green transformation and related techno-economic paradigm changes across institutional, market and technological domains. Looking at China, a recent article highlights the importance of institutional transformation to create “green windows of opportunity” (GWOs) for economic structural change associated with the green economy. Green windows of opportunity represent a set of favourable, temporary conditions for “latecomers” to catch-up in the long run in sectors central to the green economy.
By Galina Alova, Smith School of Enterprise and the Environment, University of Oxford
Non-hydro renewables are likely to account for less than 10% of Africa’s power generation by the end of this decade. My recent co-authored study predicts fossil fuels to continue to dominate the electricity mix in many African countries, and the continent as a whole.
By Glada Lahn and Siân Bradley, Senior Research Fellows, Energy, Environment and Resources Programme
This blog is part of a series on tackling COVID-19 in developing countries. Visit the OECD dedicated page to access the OECD’s data, analysis and recommendations on the health, economic, financial and societal impacts of COVID-19 worldwide.
For oil and gas exporters, COVID-19 has caused a downturn like no other. From early 2020, lockdowns sent global energy demand plummeting by over a quarter. Combined with the Saudi-Russia price war, oil prices hit their lowest levels in over two decades, down to less than $20 a barrel in April. Without strategic reserve filling, the collapse would have been even steeper. As lockdowns eased and June’s OPEC-plus agreement to cut production boosted oil prices (around $40/b in June), producer countries could be forgiven for hoping that the worst is over. However, as the pandemic hit, the fossil fuel market was already facing a grim prognosis.
For decades, access to electricity has been a serious challenge in Africa. It still is. 600 million Africans are not connected to an electrical network. African businesses cite electricity amongst the two most severe constraints on their operations (Enterprise Surveys, 2016). Twenty-five of the 54 countries in Africa, including Nigeria, South Africa, Ghana and Senegal, deal with frequent power crises characterised by outages, irregular supply and surging electricity costs. These are symptoms of insufficient generation capacity and a lack of infrastructure.
Despite these sobering facts, a number of recent initiatives signal that major improvements may be underway. The impetus to act is driven by the benefits Africa can reap by investing in electrification. Such benefits go far beyond direct job creation in energy infrastructure, as important as that is. Several pieces of evidence (Jimenez , Torero , van de Walle et al. ) suggest that household electrification also increases job opportunities by carving out more time for work and enabling rural micro-entrepreneurship. We see three reasons for hope that Africa is on the path to greater electrification – provided certain conditions are met.
By Carlos Lopes, UN Under Secretary General & Executive Secretary of the UN Economic Commission for Africa
The world’s oceans, seas and rivers are a major source of wealth, creating trillions of dollars’ worth in goods and services as well as employing billions of people. Three out of four jobs that make up the entire global workforce are water-dependent. It is forecasted that the annual economic value of maritime-related activities will reach 2.5 trillion euros per year by 2020, while the International Energy Agency estimates that renewable energy from the ocean has a power potential sufficient to provide up to 400% of current global energy demand. Yet Africa’s blue potential remains untapped. Continue reading “Africa’s Blue Economy: An opportunity not to be missed”
By Prof. John A. Mathews, Professor of Strategy at Macquarie Graduate School of Management in Sydney, Australia and author of Greening of Capitalism
There was a time when arguments about development and energy were seen as different discourses. They came together in the familiar call for poor people in developing countries to have access to electricity. As for energy needed for industrialisation, fossil fuels – with all their burdens on the balance of payments and geopolitical entanglements – were tapped to fill the need.
To be sure, the Western world as it industrialised over the past 200 years enjoyed enormous benefits from fossil fuels. The transition to a carbon-based economy liberated economies from age-old Malthusian constraints. For a group of select countries representing a small slice of the global population, burning fossil fuels enabled an era of explosive growth, ushering in dramatic improvements in productivity, income, wealth and living standards. Continue reading “Developing countries and the renewable energy revolution”